Cummins Inc Rotten Score Breakdown

In March 2024, the California Air Resources Board (CARB) and California Department of Justice announced a $46 million settlement with Cummins Inc. resolving claims that the company violated California engine emissions-control and certification requirements. According to California regulators, Cummins made undisclosed changes to approximately 120,000 engines after CARB had already certified those engines for sale. Regulators also found that roughly 2,000 Cummins engines contained undisclosed auxiliary emission-control devices that altered the emissions-control system and resulted in emissions exceeding regulatory limits. Approximately $42 million of the settlement was allocated to CARB, including about $32 million in penalties and approximately $9.8 million to mitigate excess nitrogen oxide (NOx) emissions from the non-compliant engines. Another $4 million was payable in connection with California Attorney General claims involving unfair business practices and public nuisance. The settlement also included injunctive relief intended to prevent similar violations. CARB stated that Cummins fully cooperated with its investigation and would conduct an emissions recall covering approximately 2,000 affected engines at no cost to owners. Sources: California Department of Justice — Engine Manufacturer Cummins Settles California Certification Procedure and Emission Violations Case for $46 Million https://oag.ca.gov/node/582527 California Air Resources Board — Cummins Inc. Settlement https://ww2.arb.ca.gov/cummins-inc-settlement-0 California Air Resources Board — $46 Million Cummins Settlement Announcement https://ww2.arb.ca.gov/news/engine-manufacturer-cummins-settles-california-certification-procedure-and-emissions

In January 2024, the U.S. Environmental Protection Agency (EPA), Department of Justice and California authorities announced a major settlement with Cummins Inc. over diesel engines installed in Ram 2500 and 3500 pickup trucks. According to the EPA, Cummins installed software defeat devices in approximately 630,000 model-year 2013–2019 vehicles that reduced the effectiveness of emissions controls during normal driving. Regulators also identified undisclosed auxiliary emission-control devices affecting these vehicles and approximately 330,000 additional model-year 2019–2023 vehicles. Cummins agreed to pay a $1.675 billion civil penalty, which the EPA described as the largest civil penalty ever secured under the Clean Air Act. The settlement also required Cummins to recall and repair affected vehicles, undertake projects to mitigate excess nitrogen oxide (NOx) emissions, and implement measures intended to prevent future violations. The EPA estimated the recall and mitigation requirements would cost Cummins more than an additional $326 million. The settlement resolved government claims concerning Cummins' emissions-control practices; Cummins did not admit wrongdoing under the settlement. Sources: U.S. Environmental Protection Agency — Cummins Vehicle Emission Control Violations Settlement https://www.epa.gov/enforcement/2024-cummins-inc-vehicle-emission-control-violations-settlement U.S. Department of Justice — United States and California Announce Cummins Settlement https://www.justice.gov/archives/opa/pr/united-states-and-california-announce-diesel-engine-manufacturer-cummins-inc-agrees-pay EPA — Cummins Consent Decree https://www.epa.gov/system/files/documents/2024-01/cumminsin2024-cd.pdf

The U.S. Equal Employment Opportunity Commission (EEOC) sued Cummins Inc. alleging that the company paid a female employee less than a male employee performing the same work at its Business Services facility in Nashville, Tennessee. According to the EEOC, after the employee requested a salary review, Cummins determined that she was being paid less than her male counterpart. However, the company did not increase her salary to match his pay. When she resigned almost a year later, the disparity had still not been corrected. The EEOC alleged that this conduct violated the Equal Pay Act and Title VII of the Civil Rights Act. In 2019, Cummins agreed to pay $77,500 to settle the lawsuit and entered a two-and-a-half-year consent decree requiring training for employees, including HR and management personnel, reporting of pay-discrimination complaints, and EEOC monitoring. Cummins denied liability or wrongdoing as part of the settlement. Sources: U.S. Equal Employment Opportunity Commission — Cummins to Pay $77,500 to Settle EEOC Pay Discrimination Lawsuit https://www.eeoc.gov/newsroom/cummins-inc-pay-77500-settle-eeoc-pay-discrimination-lawsuit U.S. Equal Employment Opportunity Commission — EEOC Sues Cummins for Pay Discrimination https://www.eeoc.gov/newsroom/eeoc-sues-cummins-inc-pay-discrimination