The Labor Department says the ground delivery unit of FedEx Corp. has agreed to pay $3 million to settle hiring discrimination charges in Texas and 14 other states.
The federal settlement covers wages and back interest to more than 21,000 job applicants who were rejected.
The case involves a seven-year investigation into hiring practices at FedEx Ground Package System Inc. and FedEx SmartPost Inc.
FedEx has agreed to offer jobs to about 1,700 of the affected workers as openings become available.
The Labor Department says the allegations involved discrimination on the basis of race, sex and national origin, as well as record-keeping violations.
A FedEx spokeswoman says the company admits no wrongdoing and settled to avoid costly litigation.