According to the Los Angeles Times, the package delivery company admitted no wrongdoing in agreeing to the proposed settlement of the suit.

"UPS is proud of the outstanding record we have of providing accommodations for deaf and hard-of-hearing employees," spokeswoman Peggy Gardner told the newspaper. "In most instances, UPS has gone far beyond what the law requires because of the company's desire to create a positive work environment."

UPS has refused to settle the suit's final demand, that it drop its hearing requirement for delivery car and van drivers, which is based on a standard set by the Dept. of Transportation for drivers of vehicles weighing more than 10,000 lbs.

The company's insurance carriers did not cover the $10-million settlement, which amounts to less than two days' profit for UPS, based on its 2002 earnings of $3.2 billion.