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DENVER—Federal officials say the Albertsons LLC grocery chain has agreed to pay $8.9 million to settle three discrimination lawsuits involving almost 170 workers at a suburban Denver warehouse center.

The Equal Employment Opportunity Commission announced the settlement Tuesday. The agency says black and Hispanic workers were repeatedly subjected to racial slurs and graffiti in the bathroom that depicted lynchings and swastikas.

Federal officials say employees were so offended by the graffiti that they went outside or home to use the restroom.

The EEOC says the settlement will be distributed among 168 former and current employees.

Albertsons maintains that the allegations happened before it took over operations at the distribution center.

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