Baldor Electric Co. is to pay $2 million to settle allegations regarding systemic discrimination based on the company's applicant screening process at its facility in Fort Smith, Ark., according to a statement by the U.S. Department of Labor's Office of Federal Contract Compliance Programs.

OFCCP investigators say Baldor Electric's practices violated Executive Order 11246 by creating an unequal impact on women and minorities, resulting in 795 qualified women, African-Americans, Asians and Hispanics being denied the chance to move on to the interview stage when applying for production and laborer positions.

"I am pleased with this settlement, which reflects a mutual commitment between the Department of Labor and the leadership of Baldor to ensure that all workers have a fair and equal shot at competing for good jobs," says Secretary of Labor Hilda L. Solis. "Our shared goal is to create lasting change so that anyone who comes looking for work at Baldor can be sure that discrimination will never be a factor in determining who gets the job."