Home Depot agrees to pay $125,000 to settle racial harassment case at Saugus store

Home Depot Inc. has agreed to pay $125,000 to settle a federal complaint brought on behalf of a former employee who alleged he was racially harassed at work and was fired when he complained about it.

The US Equal Employment Opportunity Commission, which announced the agreement today, said a federal judge in Boston has approved a settlement that ends the agency's lawsuit against Atlanta-based Home Depot, the nation's largest home improvement store chain.

The commission filed the complaint on behalf of Mark A. Reid, a former night crew lumber department worker and forklift operator at a Home Depot store in Saugus.

Reid, who is black, alleged supervisors frequently made racially disparaging remarks about black people, starting in March 2003. Managers condoned derogatory comments made by one of Reid's co-workers, and when Reid complained, he was fired, the lawsuit alleged.

In a statement, Home Depot said it "denies that it engaged in any form of work force discrimination, and has entered into a voluntary settlement with the EEOC to avoid costly and protracted litigation."

The company said it "maintains a zero tolerance policy regarding discrimination."

In addition to paying $125,000, Home Depot agreed to provide Reid with a neutral letter of reference; comply with federal civil rights law regarding racial harassment; train employees at its Saugus store about anti-discrimination laws; and post a notice about the prohibition of workplace discrimination.

Shares of Home Depot added 13 cents, or 0.4 percent, to $33.74 in afternoon trading on the New York Stock Exchange. (AP)