Fastenal Company, the Winona, Minnesota–based industrial and construction supply distributor, has been sued and investigated on multiple fronts over the past two decades. The Fastenal lawsuits on public record include a $6.25 million False Claims Act settlement with the federal government, several hiring discrimination settlements with the Office of Federal Contract Compliance Programs, an EEOC equal pay case, overtime misclassification class actions, a pending wrongful termination suit tied to a Super Bowl sales contest, and a non-compete enforcement action the company brought against a former employee.
Super Bowl Contest Wrongful Termination Suit
Four Fastenal employees from the Sioux Falls, South Dakota, area — Christopher Buckley, James Eide, Patrick Kuusela, and Bradley Souter — say they won a company-wide sales competition whose prize was an all-expenses-paid trip to the Super Bowl in New Orleans, and were then fired after Fastenal accused them of “cheating the system.”1The Dakota Scout. Super Bowl Contest Winners Sue Ex-Employer
They filed suit in South Dakota state court in 2024. Fastenal removed the case to federal court in January 2025, where it is docketed as Buckley et al v. Fastenal Company, Case No. 4:25-cv-04012, before U.S. District Judge Camela C. Theeler in the District of South Dakota.2CourtListener. Buckley v. Fastenal Company Much of the evidence, which includes internal text messages and emails about a points-tracking system, has been sealed under a protective order entered in April 2025.3PACER Monitor. Buckley et al v. Fastenal Company
The plaintiffs filed an amended complaint in November 2025, and both sides moved for summary judgment in early April 2026. The plaintiffs have leaned on Goodyear Tire and Rubber Co. v. Portilla, a Texas Supreme Court decision holding that an employer’s express waiver of an internal policy can create a binding contractual modification of at-will employment.4CaseMine. Goodyear Tire and Rubber Co. v. Portilla Fastenal has denied the allegations. The cross-motions for summary judgment remain pending as of June 2026.
$6.25 Million False Claims Act Settlement
In January 2011, Fastenal agreed to pay $6.25 million to resolve allegations that it submitted false claims to the federal government through a General Services Administration contract. The Department of Justice said Fastenal violated the Trade Agreements Act by knowingly selling the government products manufactured in countries, including China, that did not have qualifying trade agreements with the United States.5U.S. Department of Justice. Fastenal to Pay U.S. $6.25 Million to Resolve False Claims Act Allegations
The government also alleged that Fastenal failed to give the GSA current, accurate, and complete information about its commercial sales practices and discounts, did not comply with the price reduction clause in its GSA contract, overcharged government customers, and improperly assessed delivery and sales tax charges on government sales. The investigation grew out of a post-award audit by the GSA Office of Inspector General.5U.S. Department of Justice. Fastenal to Pay U.S. $6.25 Million to Resolve False Claims Act Allegations
OFCCP Hiring Discrimination Settlements
As a federal contractor, Fastenal is subject to oversight by the Office of Federal Contract Compliance Programs, the Labor Department agency that enforces anti-discrimination rules for companies doing business with the government. Three OFCCP actions have resulted in settlements.
Indianapolis and Atlanta: $1.25 Million
The largest OFCCP action came in October 2015, when Fastenal agreed to pay roughly $1.25 million in back wages and interest to a class of more than 8,400 rejected applicants for general warehouse positions — 7,398 African American and 1,055 female — at distribution facilities in Indianapolis and Atlanta. Federal investigators found that screening and testing practices used at the two facilities during 2011 and 2012 discriminated against Black and female applicants. At the Atlanta facility alone, the OFCCP identified a statistically significant shortfall of 27 Black hires out of nearly 3,000 qualified Black applicants, and 15 female hires out of more than 1,100 qualified female applicants.6U.S. Department of Labor. US Department of Labor Settles Hiring Discrimination Case Against Fastenal Co.7U.S. Department of Labor. Fastenal Company Conciliation Agreement
Investigators also alleged that Fastenal destroyed or failed to provide employment records from both facilities in what the OFCCP called an attempt to hinder the investigation.8Star Tribune. Fastenal Settles Federal Hiring Discrimination Case Under the conciliation agreement, Fastenal agreed to offer positions to 171 class members, discontinue the written tests that had been flagged, and overhaul its hiring and recordkeeping practices. The company did not admit wrongdoing.6U.S. Department of Labor. US Department of Labor Settles Hiring Discrimination Case Against Fastenal Co.
Denton, Texas: $250,000
The OFCCP alleged that between November 2012 and November 2014, hiring for part-time laborer positions at Fastenal’s Denton, Texas, facility discriminated against female, Black, and Hispanic applicants. The company agreed to pay $250,000 and hire at least 55 eligible class members — 36 women, 17 Black applicants, and seven Hispanic applicants — within 24 months, and to revise its recruitment and selection procedures.9Berkshire Associates. Fastenal and OFCCP Resolve Hiring Discrimination Claims
High Point, North Carolina: $168,000
The OFCCP found systemic gender-based hiring discrimination at Fastenal’s High Point, North Carolina, location, affecting 483 female applicants for “Laborers and Helpers” positions between December 2016 and July 2018. Fastenal agreed to pay $168,000 in back wages and interest, offer 24 jobs to affected applicants, and review its hiring policies for the positions in question.10OutSolve. Fastenal Co. Enters Into Conciliation Agreement With OFCCP
EEOC Equal Pay Lawsuit
In September 2018, the U.S. Equal Employment Opportunity Commission sued Fastenal in the Middle District of Pennsylvania, alleging violations of the Equal Pay Act and Title VII. Two female sales support employees at the Manchester, Pennsylvania, facility were paid less than male coworkers performing substantially equal work, the EEOC said. One of the women had trained two male coworkers hired after her who received higher pay. The other had 16 years of relevant experience and a business degree but was paid less than male coworkers who were college students.11EEOC. EEOC Sues Fastenal Company for Pay Discrimination
Fastenal settled in April 2019 for $50,000 covering back pay, liquidated damages, and compensatory damages for the two women. A two-year consent decree required anti-discrimination training for management at the Manchester facility, a posted notice about employee rights, and EEOC monitoring.12EEOC. Fastenal Company to Pay $50,000 to Settle EEOC Pay Discrimination Lawsuit
Overtime Misclassification Class Actions
A purported class action alleged that assistant general managers in California, Oregon, and Pennsylvania were improperly classified as exempt from overtime under the Fair Labor Standards Act and state labor laws. The California portion also alleged the company failed to provide required meal and rest breaks.13Fastenal Company. Fastenal Company Announces Preliminary Agreement to Settle Purported Class Action Lawsuit In September 2008 the parties reached a preliminary $10 million settlement.14Law360. Fastenal Reaches $10M Deal in OT Class Case
A separate overtime misclassification case, Deane et al. v. Fastenal, was filed in 2010 by three employees. A federal judge conditionally certified it as a class action in 2011 but decertified it in 2012. A settlement was approved in January 2014 on confidential financial terms.15Courthouse News Service. Fastenal Settlement of Overtime Case Accepted
Non-Compete Enforcement Against a Former Employee
Fastenal has also been on the plaintiff’s side. In Fastenal Company v. Kurt Patrick Gross and Hi-Tech Fasteners, LLC, filed in the Ottawa County, Michigan, Business Court in November 2022, Fastenal alleged Gross resigned and joined a competitor on the same day (June 3, 2022) and took confidential customer data with him. Before leaving, the company said, Gross emailed himself a customer “rolodex” spreadsheet and information about an internal “bounty” program, and then indirectly solicited former Fastenal customers.16Michigan Courts. Fastenal Company v. Gross, Case No. 22-007065-CB
In May 2023, Judge Jon A. Van Allsburg granted a preliminary injunction, finding Fastenal had shown a substantial likelihood of success on its breach-of-contract claim. Gross had conceded under oath that he emailed himself confidential information. The court did not find sufficient evidence at that stage to support the trade secret misappropriation claim, since there was no direct proof the information had been disclosed to third parties. The injunction barred Gross from using Fastenal’s confidential information and from soliciting or servicing customers he had handled during his final two years at the company, and enjoined Hi-Tech Fasteners from inducing him to breach his agreement. The court described the restrictions as “narrowly targeted.” Remaining claims, including enforceability questions and potential damages, were referred to binding arbitration per the employment contract.17Michigan Lawyers Weekly. Employment Non-Competition Agreement
OSHA Citations and FMLA Penalties
Fastenal’s regulatory record also includes workplace safety citations. A 2020 OSHA inspection at a Fastenal facility in Atlanta, Georgia, produced four serious violations and an initial penalty of $28,916. Through an informal settlement, the penalty was reduced to $17,350 and one citation was deleted.18OSHA. Fastenal Company Inspection Detail An earlier OSHA citation from 2012 also appears in the company’s record.19OSHA. Fastenal Company Violation Detail In 2023, the Wage and Hour Division of the Department of Labor assessed $7,793 in penalties against the company related to the Family and Medical Leave Act.20Good Jobs First. Fastenal – Violation Tracker