Thousands of Black and Hispanic educators in New York City are receiving compensation in a landmark $1.8 billion settlement, the largest in the city's history. This stems from a lawsuit alleging that the city's teacher licensing exams were racially biased and violated civil rights.

The New York Post reported that over 200 individuals who failed the Liberal Arts and Sciences Test between 1994 and 2014 have already received settlements exceeding $1 million each. This test was a requirement for teacher licensing in the city.

The lawsuit, initiated in 1996, contended that the exam unfairly favored White applicants. Data presented in the case indicated a significant disparity in pass rates, with over 90% of White applicants succeeding compared to approximately 50% of Black and Hispanic applicants.

New York City issued a $1.8 billion settlement, the largest in the city's history. (Spencer Platt/Getty Images)

A 2012 ruling by a Manhattan federal judge determined that the licensing exam did not accurately assess essential teaching skills or predict job performance, thus violating the civil rights of the applicants. This decision overturned a previous 2003 ruling in favor of the city.

Despite appealing the decision, the city, under former Mayor Bill de Blasio, began the settlement process in 2018, earmarking $1.8 billion for payouts. Lead lawyer Joshua Sohn criticized the city for using the exam to unfairly limit opportunities for Black and Latino educators, thereby depriving students of a more diverse teaching workforce.

A Manhattan judge ruled that the teacher licensing exam violated Black and Hispanic applicants' civil rights. (iStock)

The settlement has drawn mixed reactions, with some applauding the redress of past injustices while others criticize the substantial payout and the perceived devaluation of standardized testing. One Brooklyn principal argued that standards should be consistent and not adjusted based on demographic performance.

A spokesperson for the Law Department expressed regret over the outcome, emphasizing that the city had contested the court rulings but ultimately did not succeed. The spokesperson highlighted the financial burden placed on taxpayers by the judgment.

Several teachers in the lawsuit have received over $1 million. (Ron Adar/SOPA Images/LightRocket via Getty Images)

Over $750 million has already been distributed among nearly 3,000 plaintiffs, with individual settlements ranging from several hundred dollars to over $1 million. Some payments also include back pay and other forms of compensation.