New York ( CNN ) -- New York City agreed in a settlement Tuesday to pay $ 98 million in back pay and benefits to entry-level firefighters who claim the New York Fire Department used a biased entrance exam that kept African-American and Latinos off the job . The Justice Department sued the city in May 2007 , alleging the exams â€ ” first administered in 1999 â€ ” both discriminated against minority candidates and did n't properly determine who was qualified for the positions . A U.S. district judge ordered the city to pay $ 128 million and to hire 293 black and Latino applicants , provided they pass all of the tests in the hiring process . The first groups of these candidates joined the fire department in July 2013 and January , with an additional group expected to join in July . The financial issue had remained a sticking point . However , current Mayor Bill de Blasio 's administration did not seem to have former Mayor Michael Bloomberg 's desire to continue fighting the suit . `` This administration is fully committed to promoting diversity and equal access in every sector across our five boroughs , and this settlement will move New York City one step closer to this goal , '' de Blasio said in a written statement . Among the steps the city says it will take to increase minority hiring will be the creation of a chief diversity and inclusion officer position within the fire department . Paul Washington , who was president of the Vulcan Society , which represents black firefighters , when the suit was filed , said Tuesday , `` Hopefully , after almost 150 years of blacks being excluded from the best uniformed job in the city , we are witnessing a turning point . '' As part of United States of America and Vulcan Society Inc. vs. City of New York , a group of black firefighters alleged the city had intentionally discriminated against them , violating Title VII , the U.S. Constitution and state law . The lawsuit alleged that the exams had little to do with firefighting and instead focused on cognitive and reading skills . Because of the hereditary nature of the fire department , white candidates were recruited and supported throughout the application process by family or neighborhood contacts , and whites consistently passed while minority candidates failed . `` There has been one persistent stain on the Fire Department 's record , '' the lawsuit said . `` For decades , black and other minority firefighters have been severely underrepresented in the Department 's ranks . `` This pattern of underrepresentation has remained essentially unchanged since at least the 1960s . While the city 's other uniformed services have made rapid progress integrating black members into their ranks , the Fire Department has stagnated and at times retrogressed . '' The lack of minorities in U.S. fire departments has been the focus of many lawsuits around the nation . However , some big cities have diversified their ranks much faster . More than half of the Philadelphia and Los Angeles fire department members are black or Latino . The settlement still needs to be approved by the district court . `` We look forward to a new era in which African-American and Hispanic firefighters are full and equal participants in the FDNY 's proud tradition of protecting and serving the people of the city of New York , '' said Loretta Lynch , U.S. Attorney for the Eastern District of New York . CNN 's Rose Arce contributed to this report .
Entry-level firefighters to receive a total of $ 98 million in back pay to settle lawsuit . The lawsuit , filed in 2007 , claimed New York Fire Department exams were racially biased . A judge ordered the department to hire 293 black and Latino applicants .