TKO Construction Services, a staffing firm based in Coon Rapids, Minnesota, has agreed to settle a discrimination lawsuit with the Equal Employment Opportunity Commission (EEOC) by paying $300,000. The lawsuit, filed in January 2025, accused TKO of engaging in discriminatory hiring practices by not hiring women, Black workers, or individuals over the age of 40 for certain construction jobs, based on client preferences.

The issue came to light when a recruiter at TKO Construction Services resigned after the company's president confirmed the discriminatory policies. According to the recruiter, the company had implemented these policies specifically to meet client requests. Under the terms of the settlement, TKO will pay the $300,000 to the affected individuals, including the employee who resigned due to the discriminatory practices. Furthermore, TKO Construction Services is required to revamp its hiring procedures to ensure that women, Black workers, and individuals over 40 are given equal opportunities for employment in the future.

The EEOC's lawsuit highlights the importance of ensuring equal employment opportunities regardless of sex, race, or age. Gregory Gochanour, the EEOC’s regional attorney for the Chicago District, emphasized that employers cannot legally refuse to hire individuals or assign them to positions based on discriminatory factors, even if clients request such preferences. “Employers cannot refuse to hire or assign individuals for employment based on sex, race or age because their clients tell them to engage in discrimination,” Gochanour stated.

The case underscores the continuing challenge of addressing discrimination in the construction industry. The EEOC has been increasingly concerned about the underrepresentation of women and people of color in the field, particularly due to the historical perception of construction as a “White male-dominated” industry. The EEOC has consistently pointed to this underrepresentation as a critical area for improvement, as many complaints of discrimination within the sector remain egregious.

While the EEOC’s approach to discrimination in construction has been focused on ensuring diversity and inclusivity, there may be shifts in the agency's approach during President Donald Trump's second term. On the same day as the settlement, the EEOC announced the appointment of Andrea Lucas, a Republican Commissioner, as acting chair. Lucas indicated that she would prioritize tackling what she sees as “DEI-motivated race and sex discrimination” and focus on protecting American workers from "anti-American national origin discrimination.” In her statement, Lucas emphasized her desire to restore "evenhanded enforcement of employment civil rights laws for all Americans."

TKO Construction Services, which specializes in providing temporary workers for various construction sectors such as commercial, residential, industrial, and energy, has not yet responded to media requests for comment regarding the settlement or its future plans for compliance with EEOC standards. However, the settlement marks a significant step in holding companies accountable for discriminatory hiring practices, particularly in an industry where such practices have been longstanding issues.

The construction industry, which has historically faced challenges related to workforce diversity, will likely face increased scrutiny from both federal agencies and advocacy groups moving forward. As construction companies continue to navigate shifting regulatory landscapes, implementing fair and equal hiring practices will be essential for fostering a more inclusive and representative workforce.