NEW YORK (TheStreet) -- United Continental Holdings Inc. (UAL) has reached a settlement with the Justice Department regarding an immigration related claim, alleging the company discriminated against employees on the basis of their citizenship status, the Wall Street Journal reports.
The complaint alleges that United Continental required employees with a "permanent resident" status, and not employees that are U.S. citizens, to fill out additional forms, and show additional proof of their employment eligibility after they were hired, the Journal added.
In order to settle the dispute the airline company agreed to pay $215,000 to the government, and a $55,000 back pay fund to compensate employees that might have lost pay as a result of the company's actions. United Continental will also undergo a two year period, during which time its employment eligibility verification practices will be monitored, the Journal noted.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
"This was an administrative error, with no discriminatory intent and no employees were adversely impacted," a spokesperson for United Continental told the Journal.
Shares of United Continental are up 1.17% to $48.35 in late morning trading on Tuesday.
Separately, TheStreet Ratings team rates UNITED CONTINENTAL HLDGS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED CONTINENTAL HLDGS INC (UAL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."