New Jersey and the federal government have reached a settlement in a lawsuit alleging the state discriminated against black and Hispanic police officers.

Lawyers for the Department of Justice argued a written test New Jersey used since 2000 to rank candidates for promotion to the rank of police sergeant disproportionately excluded minority candidates. They also argued the tests weren't necessary to prove the candidates could do the job.

The settlement announced Monday requires the state to pay $1 million into a fund to reimburse those who were harmed. Those officers also may be given priority offers to become sergeants.

The settlement also calls on the state to stop using the tests and come up with a new method. It must be approved by a federal judge in Newark.