Iowa Hospital Agrees to $2M Bias Settlement

An Iowa hospital will spend $2 million to compensate blacks who were denied jobs and promotions to settle a class-action discrimination lawsuit.

Under the settlement made public Tuesday, Allen Hospital will compensate African-Americans who were denied jobs or promotions or faced harassment and discipline because of their race dating back to Nov. 25, 2008.

The hospital denies wrongdoing in the settlement but calls the deal “an attempt to reach out to the African-American community,” which it has long served.

Attorneys for the class will split $660,000 between them. The named class representative, a nurse who was turned down for job openings, will be reinstated with back pay and receive $10,000 plus an amount for emotional distress.

The remainder of the fund will be distributed based on a claims process.