OFCCP Blog: Making Good on the Promise of Equal Pay

Below is the latest news from the OFCCP website:

“The department’s Office of Federal Contract Compliance Programs is working to make good on the promise of equal pay. In the past three years, OFCCP has resolved more than triple the number of race- or gender-based pay discrimination cases compared to the previous three years. Read more in the blog: http://social.dol.gov/blog/making-good-on-the-promise-of-equal-pay/.”

OFCCP Notice on the Use of the 2010 Census Data

On November 29, 2012 the U.S. Census Bureau released the 2010 EEO Special File  to the public.  The Office of Federal Contract Compliance Programs (OFCCP) will begin requiring use of the 2010 Census data for all AAPs beginning on or after January, 1, 2014.  However  contractors have the option to begin using the data immediately.  Below is a link to the OFCCP’s notice.

Bertucci Contracting Settles Discrimination Case With OFCCP

News Release

OFCCP News Release: [05/01/2013]
Contact Name: Diana Petterson or Juan Rodriguez
Email:
Petterson.Diana@dol.gov or Rodriguez.Juan@dol.gov
Phone Number: (972) 850-4710 or x4709
Release Number: 13-0565-DAL

Bertucci Contracting settles discrimination case with US Labor Department

14 minority job applicants in Jefferson, La., to receive back pay, job offers

JEFFERSON, La. — Bertucci Contracting Co. LLC, a federal construction contractor, has settled allegations of hiring discrimination against minority job applicants at its Jefferson facility.

Investigators with the Labor Department’s Office of Federal Contract Compliance Programs determined that the company’s hiring process violated Executive Order 11246 by creating a disparate impact on African-American, Hispanic, Asian and Native American job seekers. As a result, 14 qualified minority applicants were denied the opportunity to fairly compete for positions as laborers and deckhands between 2009 and 2011.

“The people of the Gulf Coast have shown tremendous resilience in the aftermath of Hurricane Katrina, the BP oil spill and the Great Recession,” said OFCCP Director Patricia A. Shiu. “Our job — and the job of taxpayer-funded construction contractors like Bertucci — is to make sure the doors of opportunity are open for all workers who want to be a part of rebuilding and fortifying their communities. This agreement underscores that commitment by facilitating success for the workers, the company and the government agency involved.”

Under the terms of the conciliation agreement, Bertucci will pay $70,000 in back wages and interest to the 14 affected workers and extend at least six offers of employment — with retroactive seniority — as positions become available. Furthermore, the company will revise its selection process to provide better training for hiring managers, annually review supervisors’ adherence to employment policies and affirmative action obligations, and improve its recruitment efforts in order to avoid future violations.

Bertucci provides a variety of flood control and coastal restoration services, including environmental dredging and disposal, stone placement in vulnerable waterways, and levee construction and armament. During the two-year period reviewed by OFCCP investigators, Bertucci held more than $80 million in government contracts with the U.S. Army.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For general information, call OFCCP’s toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

Goodwill Industries of Southern California Settles Sex Discrimination Case with OFCCP

News Release

OFCCP News Release: [04/25/2013]
Contact Name: Deanne Amaden or Jose A. Carnevali
Phone Number: (415) 625-2630 or x2631
Email:
Amaden.Deanne@dol.gov or Carnevali.Jose@dol.gov
Release Number: 13-0706-SAN

Goodwill Industries of Southern California settles sex discrimination case with US Department of Labor

Agreement includes more than $130,000 in back wages for 200 male applicants and 18 job offers

LOS ANGELES — The U.S. Department of Labor today announced that Goodwill Industries of Southern California has agreed to settle allegations of systemic discrimination stemming from the federal contractor’s selection practices. Investigators with the department’s Office of Federal Contract Compliance Programs determined that Goodwill’s hiring process favored female applicants for entry-level positions as attendants at local donation centers, in part because of perceptions that women have better customer service skills. The investigation concluded that 200 qualified men were denied the opportunity to advance to the offer stage.

“Sex discrimination in the workplace can take many forms, and we are committed to fighting all of them,” said OFCCP Director Patricia A. Shiu. “That means getting away from outdated notions about what constitutes ‘men’s work’ and what constitutes ‘women’s work.’ Throughout the past century, both the Labor Department and Goodwill have shared a common purpose of serving the disadvantaged and making workers self-sufficient. This settlement builds on that proud tradition by giving every worker a fair shot at a good job.”

OFCCP’s Los Angeles District Office conducted the investigation. Under the terms of the conciliation agreement, Goodwill will pay $130,970 in back wages to the affected individuals and as openings occur will make 18 job offers to qualified men who were not previously offered positions. Goodwill also has agreed to undertake extensive self-monitoring measures and training to ensure that all hiring practices fully comply with Executive Order 11246, the federal law that prohibits federal contractors and subcontractors from discriminating in employment decisions on the basis of race, color, religion, sex or national origin. Covered government contractors must take affirmative action to ensure that equal opportunity is provided in all aspects of their employment.

Goodwill Industries of Southern California operates dozens of retail stores and donation centers in parts of Los Angeles, Riverside and San Bernardino counties. Goodwill has more than $2.5 million in contracts with several branches of the U.S. military and federal government agencies in California, and participates in a contract with the U.S. General Services Administration to provide custodial, facilities, grounds maintenance and other services at federal sites as part of its employment training and assistance programs. Proceeds from sales at Goodwill retail stores help support its employment and training services.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For general information, call OFCCP’s toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

News Release

OFCCP News Release: [02/26/2013]
Contact Name: Mike Trupo or Joshua Lamont
Phone Number: (202) 693-6588 or x 4661
Release Number: 13-0305-NAT

US Labor Department rescinds restrictions on investigating pay discrimination

WASHINGTON — The U.S. Department of Labor today announced that its Office of Federal Contract Compliance Programs is rescinding two enforcement guidance documents on pay discrimination originally issued in 2006, commonly known as the “Compensation Standards” and “Voluntary Guidelines.”This action, to be effective Feb. 28, is intended to protect workers and strengthen OFCCP’s ability to identify and remedy different forms of pay discrimination. It will enable OFCCP to conduct investigations of contractor pay practices consistent with Title VII of the Civil Rights Act of 1964.

“A strong American middle class hinges on ensuring equal pay,” said acting Secretary of Labor Seth D. Harris. “As President Obama has made clear, everyone – including the wives, mothers, sisters and daughters among us – must be paid fairly and without discrimination. These new standards will strengthen our ability to ensure that women and men are fully protected under our nation’s laws.”

The notice of final rescission withdrawing these two documents also includes new guidance for employers and other interested stakeholders setting forth the procedures, analysis and protocols OFCCP will utilize going forward when conducting compensation discrimination investigations. OFCCP will supplement the guidance with frequently asked questions, technical assistance, webinars, and other resources and materials to ensure that contractors have ample information about how to comply with the law.

“Today, we are lifting arbitrary barriers that have prevented our investigators from finding and combating illegal pay discrimination,” said OFCCP Director Patricia A. Shiu, a member of the President’s National Equal Pay Task Force. “At the same time, we are providing clear guidance for contractors to facilitate their success when it comes to providing equal opportunity to all of their workers.”

The new approach described in the notice will enable OFCCP investigators to better examine practices and available evidence to uncover discrimination and evaluate contractor compliance with Executive Order 11246. That longstanding executive order requires federal contractors to comply with antidiscrimination obligations, including prohibitions against pay discrimination. Prior to this action, OFCCP was constrained by a methodology adopted in 2006 that made it harder for the agency to exercise its full legal authority because it required use of the same narrow formula to review all contractor pay practices, regardless of the industry, types of jobs, issues presented or available data. Now, OFCCP will be using its legal authority to hold contractors to the same legal standards – enshrined in Title VII, the landmark civil rights law – that courts and other federal agencies already apply to these businesses to prohibit job discrimination.

For more information, including copies of the notice of final rescission and supporting materials, visit http://www.dol.gov/ofccp/compguidance.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. As amended, these three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran.

OFCCP Sues US Security Associates For Refusing To Submit Documents for Compliance Review

News Release

OFCCP News Release: [01/17/2013]
Contact Name: Scott Allen or Rhonda Burke
Phone Number: (312) 353-6976
Release Number: 13-0030-CHI

Labor Department sues US Security Associates for refusing to comply with federal investigation of employment practices

Complaint asks court to bar security company from government contracting

CHICAGO — The U.S. Department of Labor has filed lawsuits to require Roswell, Ga.-based U.S. Security Associates Inc. — which provides uniformed and trained guards and other emergency responders under federal contract — to submit documents detailing the company’s affirmative action plans for its own facilities in Milwaukee, Wis., and Portage, Ind.

The Labor Department’s suits, filed with its Office of Administrative Law Judges, calls for the company to provide the department’s Office of Federal Contract Compliance Programs with all documents and information requested, cooperate with scheduled compliance reviews and fully comply with the requirements of all laws enforced by the agency. If the company fails to comply, the department asks the court to cancel all of USA’s current government contracts and to debar the entire company from entering into future contracts.

“Providing OFCCP investigators with access to the documents they need in order to do their jobs is not optional,” said OFCCP Director Patricia A. Shiu. “U.S. Security Associates is well aware of its contractual obligation to submit the records we seek, and the company’s denial of access at these two facilities is especially perplexing given its cooperation in providing the same documentation in past compliance reviews.”

OFCCP sent a scheduling letter to the company’s Milwaukee facility on Dec. 7, 2011, and its Portage facility on Dec. 13, 2011, requesting records that are required for a compliance review. Instead of submitting its affirmative action plans, as required by law, USA filed a complaint with the Office of Administrative Law Judges on June 21, 2012, seeking declaratory relief from the scheduled reviews. On Sep. 17, 2012, Chief Administrative Law Judge Stephen Purcell dismissed the company’s complaint for lack of subject matter jurisdiction. USA appealed the decision to the Administrative Review Board, and the matter is currently pending. Over the following months, OFCCP continued to request that the company submit its plans but, to date, the contractor has refused.

The named facilities are two of more than 20 USA sites that currently have open OFCCP compliance evaluations. Efforts to resolve the issue between the two parties failed when USA decided to deny OFCCP access to information about its affirmative action programs in Milwaukee and Portage. The issue of providing OFCCP with access to such information has been affirmed by the courts numerous times. In November 2011, Chief Judge Royce C. Lamberth of the U.S. District Court for the District of Columbia ruled, in a similar case, that “Submission to such lawful investigations is the price of working as a federal contractor.”

Since at least 2008, USA has been a party to federal contracts that obligate it to develop and maintain plans for its affirmative action programs and provide those plans to OFCCP upon request. In July 2009, USA was awarded a contract with the General Services Administration worth more than $1 million. The company also was awarded a federal contract with the U.S. State Department for more than $7 million covering a period from September 2010 through October 2015.

OFCCP enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran.

OFCCP v. U.S. Security Associates Inc.
Case Number: 2013-OFC-00002 (Milwaukee)
Case Number: 2013-OFC-00003 (Portage, Ind.)

OFCCP Issues New FAAP Directive

Office of Federal Contract Compliance Programs (OFCCP)

Latest Events and News

OFCCP Issues New FAAP Directive

On December 17, 2012, the Office of Federal Contract Compliance Programs (OFCCP), issued Directive 305 outlining the application and approval procedures for Functional Affirmative Action Program (FAAP) Agreements provided for in 41 CFR 60-2.1(d)(4). The information collection outlined in the directive was approved by the Office of Management and Budget (OMB) under OMB Control No. 1250-0006 and is effective through December 31, 2015. Directive 305 rescinds the ADM Notice/Functional AAP, issued June 14, 2011, and lifts the moratorium on the issuance and renewal of FAAP agreements. If you have questions regarding your existing FAAP agreement, please contact the FAAP Unit at (202) 693-1083.

Read Directive 305 for more information.

Clougherty Packing Co. To Pay Almost $440,000 To Settle Sex Discrimination Case With OFCCP

News Release

OFCCP News Release: [12/18/2012]
Contact Name: José Carnevali
Phone Number: (415) 625-2631
Release Number: 12-2228-SAN

Clougherty Packing Co. – maker of the ‘Dodger Dog’ – to pay almost $440,000 to settle sex discrimination case with US Department of Labor

Company agrees to pay back wages to nearly 2,000 female job applicants and offer jobs to at least 700 class members

LOS ANGELES — Clougherty Packing Co., a federal contractor and subsidiary of Hormel Food Corp., has settled allegations of systemic hiring discrimination against female job applicants following an investigation by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs.

Compliance officers reviewing Clougherty’s hiring practices determined that, between 2007 and 2009, the company violated Executive Order 11246 by using a hiring process that discriminated against women — the majority of whom are Latinas — who applied for laborer positions at the company’s meat-packing plant in Los Angeles. Under the terms of its conciliation agreement with OFCCP, Clougherty will pay $439,538 in back wages, including interest, to 1,988 qualified female job applicants rejected for these entry-level positions. Clougherty also will make 700 job offers to affected women as positions become available. Furthermore, the company has agreed to undertake extensive self-monitoring measures to ensure that all of its hiring practices fully comply with the law.

“So many Americans grew up eating Dodger Dogs and other Hormel products. These are uniquely American brands that ought to reflect American values, particularly when it comes to ensuring fairness in the workplace,” said OFCCP Director Patricia A. Shiu. “During this holiday season, I hope that this settlement can provide a little financial help and a whole lot of justice for the women who were denied a fair shot at employment. Moreover, I am glad we were able to work with Clougherty to make sure that there will be greater opportunities for women to get jobs going forward.”

Women who applied and were rejected for laborer positions at Clougherty’s Los Angeles facility between Feb. 10, 2007, and Feb. 9, 2009, may be eligible for the back wages, interest and job opportunities in this settlement. The company has committed to contacting all class members to explain their eligibility for these remedies. However, anyone who does not receive such a notice and believes the omission is in error can contact OFCCP’s toll-free helpline at 800-397-6251 (TTY: 877-889-5627) for more information.

Clougherty Packing Co. sells more than 400 million pounds of pork per year, including products sold under the Farmer John label and “Dodger Dogs,” which are served at the Los Angeles Dodgers’ baseball stadium. The company currently holds a federal contract of $3.9 million with the U.S. Department of Agriculture, which distributes Clougherty products to food banks and other assistance programs. Family-owned for generations, Clougherty Packing was sold in 2004 to Austin, Texas-based Hormel.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For general information about the agency, please call OFCCP’s helpline or visit its website at http://www.dol.gov/ofccp/.
Read this news release en Español.

Meyer Tool Will Pay $325,000 to 60 African-American Applicants to Settle OFCCP Allegations of Racial Discrimination

News Release

OFCCP News Release: [09/17/2012]
Contact Name: Scott Allen or Rhonda Burke
Phone Number: (312) 353-6976 or x4807
Release Number: 12-1804-CHI

Meyer Tool will pay $325,000 to 60 African-American applicants to settle US Labor Department allegations of racial discrimination at Cincinnati plant

CINCINNATI — The U.S. Department of Labor’s Office of Federal Contract Compliance Programs has reached an agreement with federal contractor Meyer Tool Inc. to settle findings of race-based hiring discrimination. Under a consent judgment approved by a Labor Department administrative law judge, Meyer Tool will pay $325,000 in back wages and interest to 60 qualified African-American applicants who were rejected for entry-level machinist positions at the company’s manufacturing plant in Cincinnati. Meyer Tool also will extend job offers to at least 11 members of the original class as positions become available.

“Workers should never be denied a fair shot at employment because of factors that have absolutely nothing to do with their ability to do the job,” said OFCCP Director Patricia A. Shiu. “I am pleased that we were able to reach a fair settlement with Meyer Tool — one that will provide remedies to the affected workers and guarantee that, going forward, qualified applicants of all races and backgrounds will have the opportunity to compete on a level playing field for good jobs.”

Based on a compliance review of the facility, OFCCP investigators determined that Meyer Tool had failed to ensure qualified job applicants received equal consideration for employment without regard to race as required by Executive Order 11246. The department filed an administrative complaint on Nov. 19, 2010, alleging systematic discrimination on the part of the company.

Under the terms of the consent judgment, Meyer Tool not only will provide financial remedies and job offers to the affected workers, but also will maintain employment records as required by law, provide equal employment opportunity training to all employees involved in the hiring process and submit detailed progress reports on this front to OFCCP for the next two years.

Cincinnati-based Meyer Tool manufactures engine parts, primarily for the aerospace industry, and is one of the area’s largest private companies. During the period of OFCCP’s review, Meyer Tool held contracts worth nearly $300,000 to provide engines and engine parts to the U.S. Army.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. As amended, these three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For general information, call OFCCP’s toll-free helpline at 800-397-6251 or visit its website at http://www.dol.gov/ofccp/.

OFCCP v. Meyer Tool Inc.
Case Number: 2011-OFC-00003

Brunswick Corp., Lund Boat Co. Will Pay $295,000 in Back Wages and Interest to 185 Women to Settle Allegations of Sex Discrimination

News Release

OFCCP News Release: [09/04/2012]
Contact Name: Josh Lamont or Mike Trupo
Phone Number: (202) 693-4661 or x6588
Release Number: 12-1709-CHI

Brunswick Corp., Lund Boat Co. will pay $295,000 in back wages and interest to 185 women to settle allegations of sex discrimination at Minnesota plant

Agreement with US Labor Department includes job opportunities

WASHINGTON — The U.S. Department of Labor’s Office of Federal Contract Compliance Programs has reached an agreement with federal contractor Lund Boat Co., a wholly owned subsidiary of the Brunswick Corp., that settles allegations of hiring discrimination. In a consent judgment approved by the department’s Office of Administrative Law Judges, Brunswick Corp. and Lund Boat Co. have agreed to pay $295,000 in back wages and interest to 185 female job applicants who were rejected for entry-level positions at Lund’s boat manufacturing plant in New York Mills, Minn.

“I am pleased that we were able to reach a fair settlement in this case, one which will provide immediate relief to the women involved and lasting protections for all job seekers who apply to work for Lund and Brunswick in the future,” said OFCCP Director Patricia A. Shiu. “OFCCP is committed to making sure that companies that hold federal contracts — profiting from taxpayer dollars — give workers a fair shot at employment and do not use gender as a factor when it comes to deciding who gets a job and who doesn’t.”

OFCCP investigators based in Chicago conducted a review of Lund Boat Co.’s New York Mills facility beginning in September 2007. Based on the findings, the agency determined Lund had failed to ensure that qualified female job applicants received equal consideration for employment without regard to their gender as required by Executive Order 11246. The department filed an administrative complaint with its Office of Administrative Law Judges on Nov. 30, 2011, alleging that Lund officials had systematically discriminated against female job applicants in 2006 and 2007.

In addition to the financial remedies, the agreement requires Brunswick Corp. and Lund Boat Co. to extend job offers to at least 27 women in the original class as general laborer positions open. Seven class members already have been hired. The companies also have agreed to maintain and retain required employment records, undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law and submit detailed progress reports to OFCCP for the next two years.

Based in Lake Forest, Ill., Brunswick Corp. is a leading provider of marine, athletic and recreational products. Lund is part of the corporation’s boat manufacturing division. In the past two years alone, Brunswick has held federal contracts worth more than $248 million with agencies including the U.S. Navy and the U.S. Coast Guard.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For general information, call OFCCP’s toll-free helpline at 800-397-6251 or visit its website at http://www.dol.gov/ofccp/.

OFCCP v. Lund Boat Co. and Brunswick Corp.
Case Number: 2012-OFC-00002