A transportation and supply chain solution company and a staffing company will each pay $1 million to resolve a U.S. Equal Employment Opportunity Commission lawsuit that alleged they had subjected African American employees to racial discrimination, harassment and retaliation, the agency said Wednesday.

The EEOC said African American employees assigned by Irvine, California-based Kimco Staffing Services Inc. to a Miami-based Ryder Integrated Logistics Inc.’s Moreno Valley California facility, along with Africa American employees directly hired by Ryder, were subjected to ongoing and unwelcome harassment based on their race.

The EEOC said the two companies created a hostile work environment by allowing employees to use racial slurs and epithets towards their black colleagues.

The agency said after an African American employee complained, neither company corrected the situation and instead fired the employee within days.

The EEOC also alleged the companies discriminated against these workers in the terms and conditions of employment in assignment, training, promotion, discipline and termination.

The companies were charged with violating Title VII of the Civil Rights Act of 1964.

Besides paying $1 million, other provisions of the consent decree settling the case with Ryder include selecting an equal employment opportunity coordinator and creating a centralized tracking system.

Kimco’s consent decree has provisions including providing neutral references for claimants, along with rehiring claimants who want to return to the company.

Anna Park, regional attorney in the EEOC’s Los Angeles district office, said in a statement, “We have seen an increase in race harassment cases across industries. It is very important for employers and staffing agencies to be proactive in addressing these issues.

“We commend Ryder and Kimco for committing to changes and for being positive change agents in addressing race issues.”

Attorneys for the companies did not respond to requests for comment.

The EEOC said last week it had collected $4.8 million to be distributed to 54 Thai workers to satisfy a judgment in a national origin and race discrimination case filed against a Hawaiian pineapple company.