By Laura Stevens 

Eight current and former United Parcel Service Inc. drivers based in Lexington, Ky., have filed suit against the company, accusing it of race discrimination.

The lawsuit, filed in Fayette County Circuit Court on Friday, alleges that the employees, who are African-American, experienced "severe and pervasive racist comments, intimidation, ridicule and insults" while working at UPS.

Managers also meted out more severe punishments to African-American employees than Caucasian employees, according to the lawsuit.

UPS "fundamentally disagrees" with the charges made in the lawsuit, a spokeswoman said.

The suit also alleges that after complaining to local UPS managers, three of whom are also named as defendants in the suit, a dummy that appeared to look like a black UPS driver was hung from the ceiling by a string during a safety demonstration in August 2012 and was left there for several days. The dummy was in full UPS uniform with a dark-brown knit hat used as the face, the lawsuit contends. Later, a handwritten sign was placed on it saying, "no hangings please," the lawsuit says.

"The black UPS effigy was intended to send a message, and did in fact have the effect of intimidating the African-American employees who had complained," the suit alleges.

The purpose of the safety demonstration was to teach drivers the proper way to use a handrail, the UPS spokeswoman said. One hand and one foot of the safety demonstration dummy were attached to a ladder with twine, she said, and a string was used to hold it up. "The objective is injury prevention," she said. "There was certainly no ill will."

After it was made clear that some employees were offended, she said that human resources representatives met with the employees and conducted focus groups within the next few days.

The employees are seeking a "substantial amount" in damages, said the employees' attorney, Luke Morgan. He declined to name a figure.

Write to Laura Stevens at laura.stevens@wsj.com

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