Essex were charged in June after an investigation undertaken by the Cricket Regulator, a body responsible for monitoring compliance with the sport's rules which operates independently from the rest of the England and Wales Cricket Board (ECB).
An independent Cricket Discipline Commission (CDC) panel held a sanctions hearing and published its decision on Wednesday.
"Essex County Cricket Club has admitted a charge in breach of Directive 3.3, in relation to the systemic use of racist and/or discriminatory language and/or conduct during the period between 2001 and 2010 which Essex failed to address," it said in a statement.
The CDC panel also cautioned and reprimanded Essex while half of the fine was suspended for two years.
"There is deep regret for what occurred in the past but these events do not reflect the Essex Cricket of today," Essex chair Anu Mohindru said.
"The club have accepted the sanctions and remains committed to tackling all forms of discrimination, and is fully aligned with the ECB's goal of making cricket the country's most inclusive team sport.
"We have made significant progress in achieving these aims in the communities we represent through our excellent outreach work, as well as building a workplace that values and respects every individual."
Dave Lewis, the interim director of the Cricket Regulator, said the racism experienced at Essex was "abhorrent" while the evidence was "deeply disturbing".
Lewis added that the sanctions had been decided following a "long and complex investigation" after the club had conducted its own investigation.
The people subjected to abuse had "shown real bravery in speaking out," Lewis said, adding: " I hope that this prosecution will help ensure that no one suffers again as they did and that racism of this kind is never normalised.
"The CDC panel took into account the fact that Essex had pleaded guilty to the charge and has already taken significant action to address these issues and become a more inclusive club."
Last year, Yorkshire were fined 400,000 pounds ($A779,000) and given a 48-point deduction in the county championship by the CDC over their handling of racism allegations made by Azeem Rafiq.
The former England Under-19s captain, who is of Pakistani descent, told a British parliamentary committee in 2021 of 'inhuman' treatment at Yorkshire and said he had been a victim of institutional racism at the club.
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