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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 693-4669
Beverly Enterprises, Inc., which runs approximately 700 nursing home
facilities throughout the country, has been ordered by a federal administrative
law judge to open its corporate headquarters for review by the Labor
Department's Office of Federal Contract Compliance Programs or face being
barred from federal contracting.
"This is an extremely important ruling that upholds our right to review
a company's employment practices, including those affecting corporate
executives," Secretary of Labor Alexis M. Herman said. "This is the only way we
can be sure that companies doing business with the federal government are
treating all their employees in accordance with the law."
Beverly provides nursing home care for veterans under a multi-million
dollar contract with the Department of Veterans Affairs. As a federal
contractor, Beverly is subject to affirmative action and equal employment
opportunity requirements enforced by the Office of Federal Contract Compliance
Programs.
OFCCP initially contacted Beverly headquarters at Ft. Smith, Ark., in
September 1998 to schedule a compliance evaluation. In a corporate management
review of the type proposed for Beverly, OFCCP generally examines salary and
promotion practices in executive positions. Beverly refused to allow OFCCP
compliance officers access to its premises and to its personnel data. Beverly
claimed that it had been unfairly targeted for review and that its
constitutional rights against illegal searches and seizures had been violated.
OFCCP filed suit in May with the Labor Department's Office of
Administrative Law Judges. Administrative Law Judge Larry Price ruled July 23
that Beverly had no grounds for refusing access to its records and premises and
that no constitutional rights were violated by OFCCP's selection process.
Beverly then filed exceptions with the department's Administrative
Review Board which upheld Judge Price's ruling. The final decision, received by
the parties on Sept. 3, gave Beverly 30 days to comply with OFCCP's request for
access. If Beverly does not comply, it will face cancellation of current
contracts and debarment from future contracts until it permits OFCCP to proceed
with the review.
Archived News Release--Caution:
information may be out of date.
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