St. Cloud printing company settles charges of racial bias

ST. CLOUD - Two Black employees of a central Minnesota printing company were repeatedly harassed by co-workers and then ignored by management when they reported the abuse, according to Minnesota's civil rights enforcement agency.

The Department of Human Rights on Thursday announced a settlement agreement with St. Cloud-based Nahan that requires the company to enforce policies to prevent racial discrimination and create a more welcoming workplace.

Harassment detailed in a 2021 investigation involved repeated racial comments and use of racial epithets, as well as employees refusing to fix machinery for a Black employee due to his race. The investigation found the employee reported harassment experienced by him and his son to management, but company leaders "ignored and minimized the complaints, violating their own policy that requires the company to investigate reports of harassment," according to the department.

In one instance, the investigation found, a manager told the man to "deal with it or leave." The employee and his son ultimately left the company.

"What's concerning here is not just that employees were using racial slurs when referring to their fellow Black colleagues and making derogatory comments about Black people, but that management knew this was occurring and did nothing to stop it," said Rebecca Lucero, human rights commissioner. "This case demonstrates the persistence of racial discrimination and highlights how employers must proactively and intentionally work to end discriminatory practices to create a welcoming workplace for Black Minnesotans."

Company executives declined to be interviewed but issued a statement that said the company takes every allegation of discrimination seriously and has a zero-tolerance policy.

"Over the course of 60 years in business, we have been committed to providing a safe work environment for all employees free from harassment, bias, intimidation and discrimination," Mike Ertel, chief executive officer, wrote. "In recent years, we have made numerous efforts to further enhance our work environment and company culture. These efforts include implementation of an industry-accredited diversity, equity and inclusion program, a formal inclusive workplace policy, anonymous employee satisfaction surveys, and numerous employee appreciation programs."

Nahan was founded in 1962 as a printing company for direct mail and commercial print products. It has since expanded to a full-service direct marketing and printing business with more than 400 employees.

Benjamin Loetscher, attorney for the former employee, said his client is looking forward to seeing the terms of the settlement be performed and "if so, he is glad that some additional protections have been added."

"No resolution of a case like this is perfect, but my client hopes that we can make progress in the workplace," Loetscher said.

The settlement stipulates that Nahan will ensure it has a clear reporting mechanism for discriminatory behavior, submit to the department a summary of its investigation process and provide anti-discrimination training to all staff and managers. The department will monitor the company for two years to ensure compliance with the settlement. Nahan also will pay the former employee $45,000 as part of the settlement.

Racial discrimination in the workplace is one of the top sources of complaints for the Department of Human Rights. Employment claims regarding discrimination because or a person's sex or disability each make up about 25% of complaints, with discrimination over race making up about 18% of complaints, according to the department's most recent semiannual report.