Dresser Waukesha, known locally as Waukesha Engine, would pay $1.1 million to settle a racial discrimination lawsuit, an agreement between the plaintiffs and company proposes.
The engine manufacturer also would take steps aimed at preventing discrimination in hiring, with an outside monitor reviewing the firm's performance.
The settlement would resolve a lawsuit filed in 2008 by several African-Americans who alleged they were discriminated against in hiring and promotions.
The case has been preliminarily approved as a class action. More than 300 black job applicants who unsuccessfully applied at Waukesha Engine potentially stand to share in $650,000 the company would pay.
The plaintiffs' attorneys would get $300,000 for the class action, plus $165,000 for their representation of six current and former Waukesha Engine employees who brought individual claims.
Waukesha Engine also would establish benchmarks under which it would try to hire African-Americans at levels that reflect the pool of job applicants and the surrounding labor market. The firm would train employees, and particularly supervisors with hiring responsibilities, in diversity and equal-employment issues.
An attorney representing the company said it would not comment on pending litigation. Waukesha Engine is part of Texas-based Dresser Inc. The Waukesha operation employs several hundred people manufacturing large engines used in gas compression, power generation and mechanical drives.
The proposed settlement is subject to approval by federal Judge Lynn Adelman.