Supercuts to Settle Bias Suit for $3.5 Million

Supercuts Inc., a U.S. chain of hair salons owned by Regis Corp., agreed to pay $3.5 million to end a government lawsuit that it discriminated against black employees, according to the U.S. Equal Employment Opportunity Commission.

Minneapolis-based Supercuts was accused of refusing to hire or promote black workers and of firing some because of their race.

As part of the settlement, people who applied for jobs or were fired or denied promotions in the company’s eastern U.S. region between November 1996 and December 2001 could seek a portion of the money.

Regis denied the allegations and said it settled the case to end a five-year investigation that was expected to cost $2 million to defend.

From Bloomberg News