Oil company settles lawsuit filed by black employees

Web posted November 13, 1998

Associated Press

HOUSTON -- Pennzoil Co. has agreed to pay $6.75 million to as many as 700 black employees to settle a federal lawsuit accusing the oil company of discriminatory employment practices.

Under the settlement Wednesday, the Houston-based company also will designate an employee to oversee compliance with minority employment policies. Pennzoil did not admit any liability in the agreement, which is subject to court approval.

The lawsuit was filed in 1996 on behalf of about 700 salaried black employees who worked for Pennzoil from Aug. 16, 1994, to Aug. 17, 1998.

When the lawsuit was filed, only one black employee earned more than $100,000 a year, while hundreds of whites earned that amount, plaintiffs' attorney Larkin Eakin Jr. said Thursday. Pennzoil has since given substantial raises to its black employees, Eakin said.

A Pennzoil spokesman did not return a call for comment.