Reference no: EM133230354
Clean as New, is an office and industrial cleaning company. Mr. Hwang, a Korean immigrant, is the owner. Clean as New is a small company essentially run single handedly by Mr. Hwang. Even though Mr. Hwang hires workers are employees rather than as independent contractors, pays more than minimum wage, and provides some benefits, there is a lot of turnover in the company, the industry in general. Because he does pay his employees well, there isn't a lot of money for other expenses so when there is turnover, jobs are filled by word of mouth rather than paying money to taking out an ad in the local newspaper or advertising on social media in which Mr. Hwang does not participate.
Over a rolling 12-month year, it turns out that 73% of the applicants for jobs with Clean as New and 81% of the hires, were Korean. Less than 1 percent of the work force in the county, however, was Korean.
After complaints from non-Koreans claiming that they were discriminated against because they did not even know about the job openings, the EEOC files a suit against Clean as New.
The suit charges that the company discriminated in favor of persons of Korean origin, in violation of Title VII, by relying mainly on word of mouth to obtain new employees.
Mr. Hwang states that it was merely the result of the cheapest way to get new hires, not intentional discrimination.
Who prevails, Mr. Hwang or the EEOC? Explain your answer.