Beverly Enterprises Settles Racial Bias Charges

Beverly Enterprises Inc., the largest nursing home operator in the U.S., agreed to pay $1.2 million to settle charges of racial harassment at one of its nursing homes.

Nine workers at its Bridgeton Nursing Center near St. Louis accused the administrator of “a campaign of flagrant racial harassment” against black workers during 1993 and 1994, according to the Equal Employment Opportunity Commission, which filed a federal suit in September 1998 on the workers’ behalf.

The administrator, who resigned last fall, used racial slurs to refer to black workers, ordered black employees disciplined without cause, and retaliated against any employee who complained, the EEOC said.

The administrator also required that job applications be coded with smiling faces for white applicants and frowning faces for black applicants, the EEOC charged.

Beverly agreed not to rehire the administrator.

The human resources representative “who failed to adequately investigate complaints of discrimination” will be suspended for a week, get a written warning and get further training on investigating unlawful employment practices.

Fort Smith, Ark.-based Beverly, which sold the center last year, agreed to revise its anti-harassment policy and provide compliance reports for its Missouri facilities to the EEOC for three years.

“We take seriously the allegations. The fact that we settled the case is a signal that we are desirous of putting the issue behind us,” said Beverly spokesman Dan Springer.

Since the suit was filed, “there has been almost a complete turnover in management of the facility and we have taken aggressive measures to train and educate our staff about many of the issues raised in the allegations,” he said.

There were no allegations of racial bias against residents of the nursing home, Springer said.

Shares of Beverly fell 40 cents to $10.30 on the New York Stock Exchange before the announcement.