News Release

OFCCP News Release: [07/19/2012]
Contact Name: Michael Trupo or Josh Lamont
Phone Number: (202) 693-6588 or x4661
Release Number: 12-1443-SAN

US Labor Department settles charges of hiring discrimination with federal contractor Leprino Foods

Agreement includes $550,000 in compensation for more than 250 job applicants who are African-American, of Asian or Hispanic descent

LEMOORE, Calif. — The U.S. Department of Labor’s Office of Federal Contract Compliance Programs has entered into a consent decree with Leprino Foods Inc. to resolve charges of systemic hiring discrimination at the company’s Lemoore West facility. The consent decree, signed today by an administrative law judge with the Labor Department, settles OFCCP’s allegations that Leprino Foods’ use of a pre-employment test called WorkKeys to select hires for on-call laborer positions resulted in discrimination against African-American job applicants and applicants of Asian and Hispanic descent.

“I am pleased that we were able to reach a fair settlement in this matter,” said OFCCP Director Patricia Shiu. “While employers can and should hire the most qualified workers for the job, they cannot create artificial barriers to employment that unfairly block any individual from competing for good jobs.”

OFCCP determined that Leprino Foods violated Executive Order 11246, which prohibits federal contractors and subcontractors from discriminating on the bases of race, color, religion, sex and national origin in their employment practices. The agency made its findings after a scheduled compliance review in which OFCCP investigators conducted interviews, analyzed company data and reviewed documents provided by the company. Through this review, OFCCP discovered that the administration of the WorkKeys exam had an adverse impact on minority job applicants for these specific positions. The agency further determined that the exam was not job-related, as it tested applicants’ skills in mathematics, locating information and observation – skills that are not critical to the entry-level tasks performed by on-call laborers, such as inspecting products, monitoring equipment and maintaining sanitation at the facility.

Under the terms of the consent decree, Leprino will pay $550,000 in back wages, interest and benefits to 253 minority workers who were rejected for on-call laborer positions between January 2005 and October 2006 because they failed the WorkKeys exam. Additionally, the company has agreed to discontinue use of the test for this purpose, hire at least 13 of the original class members, undertake extensive self-monitoring measures and immediately correct any discriminatory practices.

Leprino Foods is one of the largest producers of mozzarella cheese in the world and is based in Denver, Colo. Since 2005, the company has received contracts totaling nearly $50 million from U.S. Department of Agriculture’s Farm Services Agency to provide mozzarella and other dairy products to the federal government.

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. Additional information is available at http://www.dol.gov/ofccp.

• Read this news release en Español.

News Release

OFCCP News Release: [06/25/2012]
Contact Name: Mike Trupo or Josh Lamont
Phone Number: (202) 693-6588 or x4661
Release Number: 12-0576-DAL

Baldor Electric to pay $2 million to settle hiring discrimination case with US Labor Department

Agreement includes back wages and interest, some job offers, for 795 female and minority applicants denied positions at Fort Smith, Ark., facility

WASHINGTON — The U.S. Department of Labor’s Office of Federal Contract Compliance Programs today announced that Baldor Electric Co. has agreed to settle allegations of systemic discrimination stemming from the company’s applicant screening process at its facility in Fort Smith, Ark. OFCCP investigators determined that the process violated Executive Order 11246 by creating a disparate impact on women and minorities. As a result, 795 qualified women, African-Americans and job seekers of Asian and Hispanic descent were denied the opportunity to advance to the interview stage when applying for production and laborer positions.

“I am pleased with this settlement, which reflects a mutual commitment between the Department of Labor and the leadership of Baldor to ensure that all workers have a fair and equal shot at competing for good jobs,” said Secretary of Labor Hilda L. Solis. “Our shared goal is to create lasting change so that anyone who comes looking for work at Baldor can be sure that discrimination will never be a factor in determining who gets the job.”

Under the terms of the conciliation agreement negotiated by OFCCP, Baldor will pay a total of $2 million in back wages and interest to the affected individuals and will make at least 50 job offers to members of the original class as positions become available. The company also has agreed to undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law, including record-keeping requirements.

“Discrimination is preventable when employers have certain processes in place and see to it that they are followed,” said OFCCP Director Patricia A. Shiu. “That’s why it’s so important for federal contractors to implement their affirmative action programs, keep accurate employment records and commit to ending barriers to fair employment. A proactive strategy is the best way to guarantee that all workers have an equal opportunity to succeed in the workplace. Plus, it’s the law.”

Baldor Electric, which is owned by Zurich, Switzerland-based ABB Ltd., manufactures industrial motors and generators. The company currently holds federal contracts worth more than $18 million with the General Services Administration and the U.S. departments of Veterans Affairs and Justice. From 1997 to 2010, Baldor received $79 million to produce batteries and generators for federal agencies including GSA, the Justice Department and the 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. Additional information is available at http://www.dol.gov/ofccp/.

News Release

ODEP News Release: [04/26/2012]
Contact Name: Gloria Della or Bennett Gamble
Phone Number: (202) 693-4679 or x4661
Release Number: 12-0811-NAT

US Department of Labor’s Office of Disability Employment Policy signs alliance agreement with National Industry Liaison Group

WASHINGTON — Assistant Secretary of Labor for Disability Employment Policy Kathleen Martinez and National Industry Liaison Group Chair Valerie J. Vickers have signed an alliance agreement to promote the hiring of individuals with disabilities by the federal contractor community.

“I am thrilled to sign this agreement today with the National Industry Liaison Group — an employer association representing federal contractors across the United States. The Office of Disability Employment Policy looks forward to partnering with this association to promote effective disability employment practices among all members. Together we can build workplace equality that includes those of us with disabilities,” said Martinez.

ODEP’s Alliance Initiative, started in 2006, enables organizations to work with the agency to develop and implement model policies and initiatives that increase the recruitment, hiring, retention and career advancement of employees with disabilities. The National Industry Liaison Group fosters voluntary partnerships of public and private sector entities to identify effective approaches on legal and regulatory issues regarding affirmative action and equal employment.

“NILG is proud of its commitment to equal employment opportunity in the U.S. and of our work with employers of all sizes. Our new alliance with ODEP will greatly enhance and energize our work with the contractor community,” said Vickers. “By signing this alliance agreement, the NILG commits to work together with ODEP and local liaison groups to advance the employment of workers with disabilities more effectively than ever before.”

ODEP’s mission is to provide national leadership by developing and influencing policies aimed at increasing the employment of people with disabilities. In addition to the National Industry Liaison Group, ODEP has alliances with the Partnership for Public Service, the Society for Human Resource Management, the U.S. Business Leadership Network, the HSC Foundation, the Assistive Technology Industry Association and the National Association of Governors’ Committees on People with Disabilities.

Equal Pay Day

When the Equal Pay Act was signed into law by President Kennedy in 1963, women were earning an average of 59 cents on the dollar compared to men. While women hold nearly half of today’s jobs, and their earnings account for a significant portion of the household income that sustains the financial well-being of their families, they are still experiencing a gap in pay compared to men’s wages for similar work. Today, women earn about 80 cents on the dollar compared to men — a gap that results in the loss of about $380,000 over a woman’s career. For African-American women and Latinas, the pay gap is even greater.

Each year, National Equal Pay Day reflects how far into the current year women must work to match what men earned in the previous year. On National Equal Pay Day, we rededicate ourselves to carrying forward the fight for true economic equality for all.

For more on National Equal Pay Day, including tools, resources and recently announced Apps, see below:

• Read the Secretary’s statement on National Equal Pay Day
• Read the Secretary’s Blog Post
• A Guide to Women’s Equal Pay Rights (PDF)
• An Employer’s Guide to Equal Pay (PDF)
• Equal Pay Enforcement Fact Sheet (PDF)
• Learn more about the Equal Pay App Challenge winners
• Presidential Proclamation on Equal Pay Day (PDF)
• Highlights of Women’s Earnings by Region
• Learn more about the Lilly Ledbetter Fair Pay Act, the very first bill President Obama signed into law
• Read the White House Equal Pay Task Force Accomplishments Report: Fighting for Fair Pay in the Workplace (PDF)

Copied from DOL News

News Release

OFCCP News Release: [03/22/2012]
Contact Name: Mike Trupo or Laura McGinnis
Phone Number: (202) 693-6588 or x4653
Release Number: 12-0507-NAT

Shipping giant FedEx to pay $3 million to settle charges of hiring discrimination brought by US Department of Labor

Company will pay back wages and interest to more than 21,000 applicants rejected for jobs at 23 facilities in 15 states; reform hiring practices

WASHINGTON — The U.S. Department of Labor’s Office of Federal Contract Compliance Programs today announced that it has entered into a conciliation agreement to resolve allegations of hiring discrimination by federal contractors FedEx Ground Package System Inc. and FedEx SmartPost Inc., both subsidiaries of Memphis, Tenn.-based FedEx Corp. The agreement concludes compliance reviews that spanned seven years and numerous FedEx facilities in multiple states, and includes the largest single financial settlement negotiated by OFCCP since 2004.

“We are committed to building an economy that lasts — one in which every qualified worker gets a fair shot to compete for jobs, and every employer plays by the same set of rules,” said Secretary of Labor Hilda L. Solis. “This settlement is proof that we will aggressively protect workers, promote workplace diversity and enforce the laws governing federal contractors.”

During a series of regularly scheduled reviews, OFCCP compliance officers found evidence that FedEx’s hiring processes and selection procedures violated Executive Order 11246 by discriminating on the bases of sex, race and/or national origin against specific groups identified at 23 facilities in 15 states. The affected workers include men and women as well as African-American, Caucasian and Native American job seekers, as well as job seekers of Hispanic and Asian descent. The reviews also uncovered extensive violations of the executive order’s record-keeping requirements.

Under the terms of the conciliation agreement, the companies will pay a total of $3 million in back wages and interest to 21,635 applicants who were rejected for entry-level package handler and parcel assistant positions at 22 FedEx Ground facilities and one FedEx SmartPost facility. FedEx also has agreed to extend job offers to 1,703 of the affected workers as positions become available. The 21,635 rejected job seekers represent one of the largest classes of victims of any case in OFCCP’s history.

“Being a federal contractor is a privilege and means you absolutely, positively cannot discriminate, not when you are profiting from taxpayer dollars,” said OFCCP Director Patricia A. Shiu. “Under this agreement, FedEx will have to really examine and revamp its hiring practices across the entire company. The American people ought to have confidence that one of our nation’s most trusted brands will not tolerate discrimination.”

In addition to the financial remedies and job offers, FedEx Ground has committed to wide-ranging reforms. The company has promised to correct any discriminatory hiring practices, develop and implement equal employment opportunity training, and launch extensive self-monitoring measures to ensure that all hiring practices fully comply with the law. FedEx Ground also has agreed to engage an outside consultant to perform an extensive review of the company’s hiring practices and provide recommendations to change and improve those practices, to train incumbent and future supervisors and employees, and to monitor compliance with the equal employment opportunity laws enforced by OFCCP. Finally, the company will take necessary steps to comply with all record-keeping requirements.

FedEx Ground is based in Coraopolis, Pa. The 22 FedEx Ground facilities where OFCCP found violations are located in Sun Valley and Sacramento, Calif.; Tampa, Fla.; Ellenwood, Ga.; Carol Stream and Chicago, Ill.; Indianapolis and Jeffersonville, Ind.; Lenexa, Kan.; Livonia, Mich.; St. Paul, Minn.; South Hackensack, N.J.; Albany and Brooklyn, N.Y.; Greenville, N.C.; Addyston and Grove City, Ohio; Lewisberry, Pa.; Fort Worth, Houston and South Houston, Texas; and North Salt Lake City, Utah. OFCCP also conducted compliance evaluations at two FedEx Ground facilities in Phoenix, Ariz., and San Antonio, Texas, but found no violations.

FedEx SmartPost is based in New Berlin, Wis. The FedEx SmartPost facility where OFCCP found violations is located in Charlotte, N.C.

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. Additional information is available at http://www.dol.gov/ofccp/.

• Read this news release en Español.

News Release

OFCCP News Release: [03/15/2012]
Contact Name: Scott Allen or Rhonda Burke
Phone Number: (312) 353-6976
Release Number: 12-0403-KAN

US Labor Department settles charges of racial discrimination with Iowa City, Iowa-based federal contractor NCS Pearson

Agreement includes $100,000 in back wages and interest for 67 Asian applicants

WASHINGTON — The U.S. Department of Labor’s Office of Federal Contract Compliance Programs today announced that federal government contractor NCS Pearson Inc. has agreed to settle allegations of hiring discrimination on the basis of race involving 67 Asian job applicants who were rejected for associate software developer positions at the company’s Iowa City, Iowa, facility.

“All workers deserve a fair shot to compete for and secure good jobs, and it is incumbent upon companies that do business with taxpayer dollars to make sure that the doors of opportunity are truly open to everyone,” said OFCCP Director Patricia A. Shiu, a member of the federal Interagency Working Group on Asian Americans and Pacific Islanders. “President Obama has articulated his commitment to protecting the civil rights of our nation’s rapidly growing Asian American communities, and I’m pleased that we were able to work out a settlement which will provide financial relief and jobs for workers who were denied their fair shot.”

During a scheduled compliance review, OFCCP determined that NCS Pearson violated Executive Order 11246 in 2009 by using a hiring process that resulted in systemic discrimination against Asian job applicants at its Iowa City facility. Under the terms of a conciliation agreement signed by NCS Pearson and OFCCP, the contractor will pay $100,000 in back wages and interest to the 67 affected job seekers, and will offer associate software developer positions and retroactive seniority to at least four class members as positions become available. Additionally, the company will revise its selection policies and procedures to ensure equal employment opportunities for future applicants.

NCS Pearson, a wholly-owned subsidiary of the British company Pearson PLC, holds more than $12 million in federal contracts to conduct research and development for the U.S. Department of Education. The company provides educational materials, electronic learning programs and test development, processing and scoring services to educational institutions and corporations around the world.

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. Additional information is available at http://www.dol.gov/ofccp/.

User-Friendly Documents Clarify Impact of ADAAA; Commission Will Participate in Employment Conference Sponsored by U.S. Army Wounded Warrior Program

WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) today issued two revised publications addressing veterans with disabilities and the Americans with Disabilities Act (ADA). Both documents are available on the agency’s website at www.eeoc.gov.

The revised guides reflect changes to the law stemming from the ADA Amendments Act of 2008, which make it easier for veterans with a wide range of impairments – including those that are often not well understood — such as traumatic brain injuries (TBI) and post-traumatic stress disorder (PTSD), to get needed reasonable accommodations that will enable them to work successfully.  [Prior to the ADA Amendments Act, the ADA’s definition of the term “disability” had been construed narrowly, significantly limiting the law’s protections.]

The revised documents are also an outgrowth of a public meeting the EEOC held on Nov. 16, 2011 entitled “Overcoming Barriers to the Employment of Veterans with Disabilities.” In that meeting, the Commission heard testimony from a panel of experts on the unique needs of veterans with disabilities transitioning to civilian employment.  The particular challenges faced by veterans with disabilities in obtaining employment has been the subject of increased attention in recent months, as large numbers of veterans return from service in Iraq and Afghanistan.

The Guide for Employers explains how protections for veterans with service-connected disabilities differ under the Americans with Disabilities Act (ADA) and the Uniformed Services Employment and Reemployment Rights Act (USERRA), and how employers can prevent disability-based discrimination and provide reasonable accommodations.

The Guide for Wounded Veterans answers questions that veterans with service-related disabilities may have about the protections they are entitled to when they seek to return to their former jobs or look for civilian jobs. The publication also explains the kinds of accommodations that may be necessary to help veterans with disabilities obtain and successfully maintain employment.

“We want veterans with disabilities to know that the EEOC has resources to assist them as they transition to, or move within the civilian workforce,” said EEOC Chair Jacqueline A. Berrien. “The release of these publications demonstrates our commitment to ensuring that veterans with disabilities receive the full protection of the laws we enforce, and that employers understand how to comply with those laws.”

On February 27-28 the EEOC will give presentations at an employment conference for severely injured U.S. Army personnel at Fort Belvoir, Virginia, sponsored by the Department of the Army’s Army Wounded Warrior (AW2) Program. The presentations will provide information to employers about the employment of veterans with disabilities and the ADA, and training for severely injured soldiers to help them learn their rights under the ADA as they seek civilian employment.

Over the past decade three million veterans have returned from military service and another one million are expected to return to civilian life over the course of the next five years with the anticipated drawdown of operations in the Middle East. According to an October report from the Bureau of Labor Statistics, unemployment for post-9/11 era veterans hovers around 12 percent, which is more than three percentage points higher than the overall unemployment rate.

The EEOC enforces federal laws prohibiting employment discrimination.   Further information about the EEOC is available on its web site at www.eeoc.gov.

News Release

OFCCP News Release: [01/12/2012]
Contact Name: Elizabeth Todd or Juan Rodriguez
Phone Number: (972) 850-4710 or x4709
Release Number: 12-15-DAL

US Labor Department settles charges of racial discrimination with Houston-based defense contractor JacintoPort

Agreement includes $219,000 in back wages and interest for 69 African-American and Caucasian applicants plus job offers for some

HOUSTON —The U.S. Department of Labor’s Office of Federal Contract Compliance Programs today announced that government contractor JacintoPort International LLC has agreed to settle allegations of hiring discrimination on the basis of race involving 48 African-American and 21 Caucasian job applicants who were rejected for longshoreman positions at the company’s cargo facility in Houston.

“In this day and age, it is shocking that any company would allow race to be a factor in determining who gets hired,” said OFCCP Director Patricia A. Shiu. “This settlement should put all federal contractors on notice that, in the Obama administration, we will be persistent when it comes to rooting out workplace discrimination and will vigilantly monitor employers who violate the law until they get it right.”

OFCCP previously cited JacintoPort for violating requirements of Executive Order 11246 by failing to implement an applicant tracking system for new hires, and to develop and execute action-oriented programs to recruit women and African-Americans. That matter was settled on June 6, 2006, with a conciliation document in which JacintoPort agreed to correct the violations and produce semiannual reports on the company’s progress in employing women and minorities.

In reviewing those progress reports, OFCCP investigators found that the company was giving preferential treatment to Latino applicants and systematically discriminating against African-Americans and Caucasians seeking longshoreman jobs. Under the terms of the latest conciliation agreement, JacintoPort will pay $219,000 in back wages and interest to the affected individuals, and make 17 job offers to members of the original class as longshoreman positions become available. In addition, JacintoPort has agreed to undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law, including record-keeping requirements.

JacintoPort, a wholly-owned subsidiary of Shawnee Mission, Kan.-based Seaboard Corp., currently holds more than $1.2 million in contracts to store and transport cargo for the Defense Commissary Agency.

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.

• Read this news release en Español.

News Release

OFCCP News Release: [12/08/2011]
Contact Name: Laura McGinnis or Mike Trupo
Phone Number: (202) 693-4653 or x6588
Release Number: 11-1614-NAT

US Labor Department seeks to improve job opportunities for Americans with disabilities by setting historic hiring goal for federal contractors and subcontractors

WASHINGTON — The U.S. Department of Labor is proposing a new rule that would require federal contractors and subcontractors to set a hiring goal of having 7 percent of their workforces be people with disabilities, among other requirements. The department’s Office of Federal Contract Compliance Programs invites public comment on this proposal, which will be published in the Dec. 9 edition of the Federal Register.

OFCCP’s proposed rule would strengthen the affirmative action requirements established in Section 503 of the Rehabilitation Act of 1973 obligating federal contractors and subcontractors to ensure equal employment opportunities for qualified workers with disabilities. The proposed regulatory changes detail specific actions contractors must take in the areas of recruitment, training, record keeping and policy dissemination — similar to those that have long been required to promote workplace equality for women and minorities. In addition, the rule would clarify OFCCP’s expectations for contractors by providing specific guidance on how to comply with the law.

“This proposed rule represents one of the most significant advances in protecting the civil rights of workers with disabilities since the passage of the Americans with Disabilities Act,” said Secretary of Labor Hilda L. Solis. “President Obama has demonstrated a commitment to people with disabilities. This proposed rule would help federal contractors better fulfill their legal responsibility to hire qualified workers with disabilities.”

Although Section 503 regulations have been in place for decades, the current unemployment rate for people with disabilities is 13 percent, 1 1/2 times the rate of those without disabilities. Even more discouraging, data published last week by the department’s Bureau of Labor Statistics show stark disparities facing working-age individuals with disabilities, with 79.2 percent outside the labor force altogether, compared to 30.5 percent of those without disabilities.

“For nearly 40 years, the rules have said that contractors simply need to make a ‘good faith’ effort to recruit and hire people with disabilities. Clearly, that’s not working,” said OFCCP Director Patricia A. Shiu. “Our proposal would define specific goals, require real accountability and provide the clearest possible guidance for employers seeking to comply with the law. What gets measured gets done. And we’re in the business of getting things done.”

Establishing a 7 percent hiring goal for the employment of individuals with disabilities would be a tool for contractors to measure the effectiveness of their affirmative action efforts and thereby inform their decision-making. The proposed rule also would enhance data collection and record-keeping requirements — including for documentation and processing of requests for reasonable accommodation — in order to improve accountability. Additionally, it would ensure annual self-reviews of employers’ recruitment and outreach efforts, and add a new requirement for contractors to list job openings to increase their pools of qualified applicants.

To read the notice of proposed rulemaking or submit a comment, visit the federal e-rulemaking portal at http://www.regulations.gov. Comments also can be submitted by mail to Debra Carr, Office of Federal Contract Compliance Programs, U.S. Department of Labor, Room C-3325, 200 Constitution Ave. NW, Washington, D.C. 20210. All comments must be received by Feb. 7, 2012, and should include identification number (RIN) 1250-AA02.

In addition to Section 503, OFCCP enforces Executive Order 11246 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 take affirmative action and 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/.

News Release

OFCCP News Release: [12/01/2011]
Contact Name: Scott Allen or Rhonda Burke
Phone Number: (312) 353-6976 or x4807
Release Number: 11-1625-CHI

US Labor Department files complaint against Brunswick Corp. and Lund Boat Co. for sex discrimination at Minnesota manufacturing plant

More than 200 women applicants affected; complaint seeks back wages, job opportunities

WASHINGTON — The U.S. Department of Labor’s Office of Federal Contract Compliance Programs is suing federal contractor Brunswick Corp. and Lund Boat Co., a wholly-owned subsidiary. In an administrative complaint filed today with the department’s Office of Administrative Law Judges, OFCCP asserts that the companies systematically discriminated against more than 200 women who applied for entry-level positions at Lund’s boat manufacturing plant in New York Mills, Minn.

“Representatives from Lund have argued that women were less likely to be hired than men because of a preference for workers with manufacturing experience,” said Solicitor of Labor M. Patricia Smith. “However, OFCCP’s investigation found that even women with this type of experience were less likely to be hired than men without it. That’s not fair. It’s not right. And it’s against the law.”

Under Executive Order 11246, federal contractors are required to ensure that qualified job applicants receive equal consideration for employment without regard to their sex. OFCCP’s complaint requests that Lund and Brunswick provide financial remedies — including lost wages, interest and benefits — to the women affected by the discriminatory practices. Furthermore, the agency asks that job offers be extended to at least 27 women in the original group of applicants. Finally, the suit asks that the companies be prohibited from extending or modifying current government contracts and from entering into future contracts until they have remedied these violations.

“Brunswick’s Chairman and CEO, Dustan McCoy, has stated a commitment to acting ethically,” said OFCCP Director Patricia A. Shiu. “By his own words, ‘Acting ethically simply means that we do what is right in all situations.’ So, we ask him now to do what is right for the women who sought a fair shot at employment with his company and for the taxpayers who deserve to know that their money is never used to discriminate.”

Based in Lake Forest, Ill., Brunswick is a leading provider of marine, athletic and recreational products. Lund serves as the corporation’s boat manufacturing division. In the past two years alone, Brunswick held federal contracts totaling almost $23 million with agencies including the U.S. Departments of Defense and Homeland Security, among others.

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, 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 1-800-397-6251 or visit its website at http://www.dol.gov/ofccp/.

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