CHICAGO–The city of Chicago will pay about $47 million to settle a lawsuit brought by black firefighters who alleged that a 1995 test was discriminatory.

The U.S. Supreme Court had ruled last year that the firefighters could proceed with their case.

Plaintiff attorney Matthew Piers, a shareholder in Chicago with law firm Hughes Socol Piers Resnick & Dym Ltd., said under terms of the judgment issued Wednesday by U.S. District Court Judge Joan B. Gottschall, the city will pay about $30 million in back wages and $17 million in pension contributions. It also will hire another 111 black firemen.

The focus of Arthur L. Lewis Jr. et al. vs. City of Chicago was a 1995 written test taken by more than 26,000 Chicago Fire Department applicants.

Based on their scores, the applicants were placed in three categories—well-qualified, qualified and not qualified, according to the opinion.

Applicants were told that those in the qualified category were unlikely to be hired because of the large number who scored as well-qualified, but that they would stay on the eligibility list as long as it was used.

Classification, validity questioned

Black applicants who scored in the qualified category brought the suit, which alleged that the test disproportionately classified blacks as qualified rather than well-qualified and was not a valid test of their firefighting aptitude.

To file suit under Title VII of the Civil Rights Act of 1964, plaintiffs first must file a charge with the Equal Opportunity Employment Commission. Depending on the state, the allegation must be filed with the EEOC within 180 or 300 days of the alleged unlawful employment practice.

Attorneys for Chicago argued that the EEOC charge was “untimely” because it was filed March 21, 1997, or 420 days after notice of the test results was sent. The plaintiffs argued that the EEOC charge was valid because it was filed within 300 days after Chicago began hiring from the well-qualified list, in May 1996. A federal judge ruled for the firefighters, but the 7th U.S. Circuit Court of Appeals sided with the city and overturned the ruling in 2008.

However, the U.S. Supreme Court unanimously overturned the appeals court in May 2010 and said it was a timely claim, allowing the lawsuit to proceed.

Under Title VII, a plaintiff establishes a prima facie disparate-impact claim by showing that an employer has used a particular employment practice that caused a disparate impact. “Petitioners' claims satisfied that requirement,” the high court ruled.

On remand from the Supreme Court earlier this year, the 7th Circuit ruled in the firefighters' favor, except for one group hired in 1996.

“We're very pleased that after all these years we're finally able to resolve this matter, and we're very pleased the result will increase the presence of African-Americans in the Chicago Fire Department, an increase that is sorely needed,” Mr. Piers said.

During a news conference, Chicago Mayor Rahm Emanuel said the fire department was putting a program in place “as it relates to hiring for the future.” The program is designed to make sure “people feel they got a shot at becoming a fireman,” he said.