Convenience Store Chain With Hundreds of Outlets in 6 States Hit with Discrimination Lawsuit

The Sheetz convenience store chain has been hit with a lawsuit by federal officials who allege the company discriminated against minority job applicants.

Sheetz Inc., which operates more than 700 stores in six states, discriminated against Black, Native American and multiracial job seekers by automatically weeding out applicants whom the company deemed to have failed a criminal background check, according to U.S. officials.

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The Equal Employment Opportunity Commission filed suit in Baltimore against Altoona, Pennsylvania-based Sheetz and two subsidary companies, alleging the chain’s longstanding hiring practices have a disproportionate impact on minority applicants and thus run afoul of federal civil rights law.

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“Federal law mandates that employment practices causing a disparate impact because of race or other protected classifications must be shown by the employer to be necessary to ensure the safe and efficient performance of the particular jobs at issue,” EEOC attorney Debra M. Lawrence said in a statement.

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The agency found that Black job applicants were deemed to have failed the company’s criminal history screening and were denied employment at a rate of 14.5%, while multiracial job seekers were turned away 13.5% of the time and Native Americans were denied at a rate of 13%.

By contrast, fewer than 8% of white applicants were refused employment because of a failed criminal background check, the EEOC’s lawsuit said.

The EEOC notified Sheetz in 2022 that it was likely violating civil rights law, but the agency said its efforts to mediate a settlement failed, prompting this week’s lawsuit.