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The ruling says the department's written exams given to recruits from 1999 to 2007 were biased against blacks and Hispanics.

The judge says he is considering remedies the department will have to take to end the discrimination.

Meanwhile, the city law department says it has already made strides to increase the number of minorities. Back in January of 2007, it began using a new test that was developed with help from outside experts.

The department has also launched an outreach program, including a $2 million recruitment campaign that pushes the benefits of becoming one of New York's Bravest.

The city says over one third of the recent graduating class are minorities, the most diverse in the city's history.

Of the roughly 11,000 firefighters in New York City, about three percent are black and 4.5 percent are Hispanic.

"You can't have a bad exam and hold that in high esteem continuously. Now the fire department realizes that exam has got to go," said John Coombs of the Vulcan Society. "We have to look at other models in the nation that we can follow. And at lease be willing to adapt and change something that gives other results."

The lawsuit was filed by the Vulcan Society, an order of black firefighters, and the U.S. Department of Justice.