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Newport company settles federal discrimination lawsuit

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A Newport Beach-based company that runs 18 assisted-living facilities across the state has settled a federal lawsuit that alleged the firm discriminated against foreign-born employees and job applicants, the U.S. Justice Department said.

Generations Healthcare treated non-native workers unfairly when it required them to show more documents than U.S.-born employees to prove they were eligible to work, according to a lawsuit filed in 2011 by the Justice Department.

Because of that, some immigrants were denied jobs even though they legally had enough proof to work, the Justice Department said.

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An administrative court ruled in September that Generations Healthcare was at fault, but the court hadn’t yet decided what the company would have to do to remedy the situation.

On Thursday, the Justice Department said the company agreed to a settlement that would end the lawsuit.

Generations Healthcare did not respond to a request for comment Monday.

The company will pay $88,687 in fines and give $119,313 worth of back pay to two victims, according to the Justice Department. Federal authorities also will monitor the company’s hiring practices for two years.

“Both the court’s ruling and this settlement underscore the importance of complying with the anti-discrimination provision of the Immigration and Nationality Act and the consequences for failing to do so,” acting Asst. Attorney General Vanita Gupta said in a statement. “Employers should review their hiring policies and employment eligibility verification practices to ensure that they comply with federal anti-discrimination law.”

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