Mirage settles federal bias suit for $1 million

Tuesday, Nov. 26, 2002 | 11:13 a.m.

The U.S. Equal Employment Opportunity Commission today announced it has settled a race discrimination lawsuit against the Mirage casino resort in Las Vegas for more than $1 million.

The EEOC suit, filed in Nevada's U.S. District Court, charged the Mirage with discriminating against black and Hispanic applicants for positions at the property from Jan. 1, 1996, until May 31, 1997.

The Mirage, now owned by MGM MIRAGE, and MGM Grand Inc. came under fire from the National Association for the Advancement of Colored People when it was announced that MGM Grand would acquire Mirage's then-parent company, Steve Wynn's Mirage Resorts Inc. The NAACP's local president criticized MGM Grand for not doing enough to promote minority businesses. MGM Grand had spent less with minority businesses than Mirage Resorts, the NAACP said.

The settlement provides for $840,000 in financial compensation for a class of black and Hispanic applicants and the implementation of complaint procedures, anti-discrimination training and record-keeping obligations to be monitored by the EEOC over a period of three years.

"We commend the MGM MIRAGE for its due diligence in resolving these issues by working cooperatively with us to reach this agreement," EEOC Chair Cari M. Dominguez said.

The suit stems from a time before the combined company established a full-scale diversity program that promotes minority participation at all levels of the company, MGM MIRAGE spokesman Alan Feldman said.

Minority advocates have since lauded MGM MIRAGE for its diversity campaign, which has been called the first and most comprehensive of its kind in the casino industry. The company still remains a target for some critics.

"Under this agreement, the Mirage will supplement its already extensive diversity training program, which is one of the principal elements of the commitment to diversity within our company," Debbie Thomas, vice president of human resources at the Mirage, said in a statement.