Nov. 4 (UPI) — McKesson Medical-Surgical Inc. entered into an agreement with the Labor Department on Monday resolving employment discrimination issues involving nearly 900 Black, Hispanic and White applicants at a distribution center in Texas.

The Labor Department said its Federal Contract Compliance Programs found that medical-supply company McKesson’s facility in Grapevine, Texas, allegedly discriminated against 472 Blacks, 226 Latinos, and 186 White applicants.

The Labor Department said McKesson will pay $448,578 to 32 eligible applicants in back wages and interest, along with making job offers to them.

“Federal contractors must not engage in discriminatory hiring practices, it is the responsibility of the employer to ensure its selection practices comply with federal law,” Ronald W. Sullivan II, the Southwest and Rocky Mountain regional director of the Office of Federal Contract Compliance said in a statement.

McKesson also agreed to ensure its hiring procedures are free of discrimination and that it will train management who oversee hiring decisions. The Labor Department said that McKesson has more than $32 million in federal contracts with the U.S. Department of Veteran Affairs.

The Labor Department said a routine compliance evaluation discovered that the hiring practices at the McKesson Grapevine office allegedly discriminated against some applicants for associate material handler positions from Sept. 24, 2019, through Sept. 24, 2021.