Agency Acronym
OFCCP
DOL Search Collections ID
4948

U.S. Department of Labor Review Results in Federal Contractor Paying $858,492 in Back Wages to Settle Alleged Hiring Discrimination

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U.S. Department of Labor Review Results in Federal Contractor Paying $858,492 in Back Wages to Settle Alleged Hiring Discrimination

PHOENIX, AZ – After a review by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), Shamrock Foods Company – a food products and services company based in Phoenix, Arizona – has agreed to pay $858,492 in lost wages, benefits, and interest to resolve allegations of discrimination against female, African American and white applicants at its facilities in Phoenix, Arizona, and Eastvale, California.

 OFCCP found that Shamrock Foods Company failed to hire qualified female, African American and white applicants for a variety of positions between 2017 and 2018. OFCCP alleged that the company’s hiring practices violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, national origin or gender.

Federal contractors are required to provide equal employment opportunity to all applicants regardless of race, gender, and ethnicity,” said Office of Federal Contract Compliance Programs Regional Director Jane Suhr, in San Francisco.

Shamrock Foods Company volunteered to enter into an early resolution agreement and enhance its compliance in the hiring process throughout the company. Under the terms of the agreement, Shamrock agreed to extend job opportunities to class members as positions become available, review and revise its selection process and provide enhanced training to its hiring managers. 

If you think you may be eligible for back pay from this settlement or may know someone who is, please visit OFCCP’s Class Member Locator at https://www.dol.gov/ofccp/CML.

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 laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations, and may not retaliate against applicants or employees for engaging in protected activities. These laws also require that federal contractors provide equal employment opportunity through affirmative action. For more information, please call OFCCP's toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Office of Federal Contract Compliance Programs
Date
June 26, 2020
Release Number
20-1281-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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New Hampshire Federal Construction Subcontractor Enters Agreement To Settle Hiring Discrimination Found by U.S. Department of Labor

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New Hampshire Federal Construction Subcontractor Enters Agreement To Settle Hiring Discrimination Found by U.S. Department of Labor

BOSTON, MA – After a routine compliance review by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), EnviroVantage Inc – a federal construction subcontractor at the Portsmouth Naval Shipyard construction megaproject – has entered into a conciliation agreement to resolve hiring discrimination at its Epping, New Hampshire, facility.

Investigators from OFCCP’s Boston District Office found that EnviroVantage Inc. discriminated in its hiring practices affecting 12 women who applied for Field Worker/Demo entry-level positions, a position traditionally held by males. EnviroVantage Inc. disputes the allegations but agreed to pay $100,000 to the affected female applicants and to hire 12 eligible female class members in the Field Worker/Demo entry level position. 

In addition, EnviroVantage, Inc. agreed to the following:

  • Review and revise EnviroVantage’s selection process as needed for the Field Worker/Demo Worker position including implementation of improved policies to eliminate such adverse effects; 
  • Ensure all policies and qualifications standards are uniformly applied to all applicants;
  • Implement a system to track applicants and document decisions at each step in the hiring process;
  • Train  all individuals involved in recruiting, selecting and tracking applicants for the Field Worker/Demo Worker positions on the hiring process; and
  • Ensure hiring practices comply with federal law.

“This settlement highlights the success of our Mega Construction Project Program that ensures that federal contractors and subcontractors on large construction projects provide equal employment opportunity and extensive Office of Federal Contract Compliance Programs compliance assistance at the earliest stages of the project,” said Office of Federal Contract Compliance Programs Northeast Regional Director Diana Sen.

EnviroVantage Inc. is a federal subcontractor conducting abatement, demolition, and historical window and door restoration at the Portsmouth megaproject.

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 laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations, and may not retaliate against applicants or employees for engaging in protected activities. These laws also require that federal contractors provide equal employment opportunity through affirmative action. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Office of Federal Contract Compliance Programs v. EnviroVantage Inc.

Case Number: R00201474

Agency
Office of Federal Contract Compliance Programs
Date
June 24, 2020
Release Number
20-982-BOS
Media Contact: Ted Fitzgerald
Media Contact: James C. Lally
Phone Number
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Judge Orders Baltimore-Based Federal Contractor to Pay $960,905 In Back Wages to Resolve Discrimination and Harassment Allegations

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Judge Orders Baltimore-Based Federal Contractor to Pay $960,905 In Back Wages to Resolve Discrimination and Harassment Allegations

BALTIMORE, MD – A judge with the U.S. Department of Labor’s Office of Administrative Law Judges (OALJ) has ordered WMS Solutions LLC – a Baltimore-based staffing agency and federal contractor specializing in asbestos removal and demolition – to pay $960,905 in back wages, damages and interest to remedy alleged discriminatory hiring and compensation practices. The administrative law judge (ALJ) also ordered the company to implement a zero-tolerance anti-harassment policy and to train all managers and employees on their anti-discrimination obligations.

The ALJ determined that, from February 2011 through January 2012, WMS Solutions LLC violated Executive Order 11246 when the employer intentionally used race and ethnicity as a determining factor in its hiring process, preferring to hire Hispanic laborers and failing to hire white, African American, Asian and American Indian/Alaskan Native laborers. The ALJ found that if WMS Solutions had used a race-neutral selection process, 160 additional hires of non-Hispanic laborers would have occurred during the investigative period. The OALJ ordered WMS Solutions LLC to pay $780,998 to remedy this systemic hiring discrimination.

In addition, the ALJ found the employer failed to provide a workplace free of harassment, intimidation and coercion by recruiting a Hispanic workforce and then knowingly creating an abusive and hostile working environment for them. Employees had informed WMS managers many times about dozens of incidents of physical and verbal harassment against Hispanic employees yet WMS took no action. Employees reported being struck with objects, dragged across the jobsite and punched in the face and chest because of their race and ethnicity.  

WMS Solutions LLC also engaged in systematic compensation discrimination, the ALJ determined. Specifically, WMS Solutions LLC steered female laborers to lower-paying job assignments, paid female laborers a lower hourly rate for the same work as male laborers, and assigned fewer hours of work to non-Hispanic laborers. The ALJ ordered WMS to pay $179,907 to remedy this pay discrimination.

The decision follows a department administrative proceeding filed against WMS Solutions LLC after a compliance evaluation by the department’s Office of Federal Contract Compliance Programs (OFCCP). 

“Federal contractors have a legal obligation to treat both employees and job applicants fairly with regard to hiring and compensation, regardless of their race or gender, as well as a place to work that is free from harassment. WMS did none of these things,” said OFCCP Mid-Atlantic Regional Director Michele Hodge, in Philadelphia, Pennsylvania.

In addition to the $960,905 in wages and interest, the judge ordered WMS Solutions to:

  • Develop a corporate-wide, zero-tolerance policy prohibiting harassment, intimidation, threats, retaliation and coercion against any employee at any worksite;
  • Provide all WMS managers, supervisors and employees annual training on equal employment opportunity, as well as on the identification and prevention of harassment based on race, color, religion, sex, national origin, disability or veteran’s status; and
  • In no way retaliate, harass or engage in any form of reprisal against any of its employees for opposing harassment or other forms of discrimination, or participating in any investigation or inquiry into allegations of harassment or discrimination.

“This decision goes a long way in showing that contractors cannot hide behind common perceptions of construction worksites to ignore the requirements of equal treatment in hiring, pay and the right to not be abused at work. The harassment reported by the employees working for WMS was horrific,” said Regional Solicitor Oscar L. Hampton III, in Philadelphia. “Federal contractors in every business, including construction, are bound by the equal protections for employees and applicants they agree to follow in exchange for a contract with 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. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations, and may not retaliate against applicants or employees for engaging in protected activities. These laws also require that federal contractors provide equal employment opportunities through affirmative action. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Office of Federal Contract Compliance Programs
Date
June 22, 2020
Release Number
20-1053-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins
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U.S. Department of Labor and Oldcastle Building Envelope Inc. Reach Agreement to Resolve Alleged Hiring Discrimination

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U.S. Department of Labor and Oldcastle Building Envelope Inc. Reach Agreement to Resolve Alleged Hiring Discrimination

COVINGTON, GA – The U.S. Department of Labor has entered into a conciliation agreement with Oldcastle Building Envelope Inc., a federal government contractor that supplies building materials – in which the employer will pay $300,000 in back wages and interest to eligible class members to resolve hiring discrimination allegations at the company’s Covington, Georgia facility. In the agreement, Oldcastle Building Envelope does not admit to the allegations of the Department’s Office of Federal Contract Compliance Programs (OFCCP).

OFCCP alleged Oldcastle Building Envelope discriminated, in favor of white and male applicants, against female and African American applicants who applied for glassworker production positions. OFCCP found the company’s actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, national origin or gender. In addition to paying back wages and interest, Oldcastle Building Envelope agreed to provide job opportunities to 49 affected applicants. The company will also take steps to ensure its personnel practices, including recruitment, recordkeeping and internal auditing procedures comply with the law.

“Federal contractors and subcontractors must comply with all federal anti-discrimination laws,” said Office of Federal Contract Compliance Programs Southeast Regional Director Samuel Maiden, in Atlanta, Georgia. “Oldcastle Building Envelope is working cooperatively with the U.S. Department of Labor to resolve this matter and has committed to providing equal employment opportunities.”

Oldcastle Building Envelope Inc. supplies architectural glass for federal projects, including the curtain wall for the U.S. Federal Courthouse in Miami, Florida.

If you think you may be one of the applicants eligible for back pay or job opportunities from this settlement, or may know someone who is, please visit the OFCCP Class Member Locator for information about this, and other OFCCP settlements.

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 laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations, and may not retaliate against applicants or employees for engaging in protected activities. These laws also require that federal contractors provide equal employment opportunity through affirmative action. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Office of Federal Contract Compliance Programs
Date
June 4, 2020
Release Number
20-889-ATL
Media Contact: Eric R. Lucero
Phone Number
Media Contact: Michael D'Aquino
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U.S. Department of Labor Seeks to More Efficiently Resolve Contractor Compliance Evaluations

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U.S. Department of Labor Seek to Efficiently Resolve Contractor Compliance Evaluations

WASHINGTON, DCThe U.S. Department of Labor today announced three directives from the department’s Office of Federal Contract Compliance Programs (OFCCP) to increase accountability and efficiency in its enforcement and to maximize the effectiveness of compliance assistance resources to assist contractors in meeting their responsibilities.

  • Efficiency in Compliance Evaluations: This directive outlines the steps OFCCP will take to expeditiously resolve compliance evaluations and quickly remedy violations to benefit the workers OFCCP protects and the regulated community. Efficient compliance evaluations helps ensure the collection of relevant evidence in a timely manner.
  • Pre-Referral Mediation Program: This directive establishes a mediation program to resolve matters before spending significant time and resources in the enforcement process. OFCCP will offer this program to federal contractors and subcontractors to resolve findings of discrimination after the Show Cause Notice has been issued but prior to referrals to the Office of the Solicitor for enforcement. This mediation is not a substitute for the conciliation period between a Notice of Violation and Show Cause Notice.
  • Ombuds Service Supplement and Protocol: This directive supplements Directive 2018-09 with additional details outlined in an Ombuds Service Protocol, which explains the principles of the Ombuds Service. While some stakeholders appear reluctant to contact OFCCP directly, the agency is committed to engaging in transparent communications and created the Ombuds Service as an independent mechanism to allow stakeholders to share their concerns with OFCCP or provide general feedback and recommendations to improve agency administration.

Through these three directives, the Office of Federal Contract Compliance Programs further demonstrates its strong commitment to resolving cases promptly to obtain significant remedies for affected workers, while minimizing burden and delay for federal contractors seeking to comply. In particular, the agency believes the Ombuds Service will ensure efficient use of dispute resolution resources, including mediation, by OFCCP,” said Office of Federal Contract Compliance Programs Director Craig E. Leen.

OFCCP enforces Executive Order 11246Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations. Executive Order 11246 requires that federal contractors provide equal employment opportunity through affirmative action. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

 

Agency
Office of Federal Contract Compliance Programs
Date
April 17, 2020
Release Number
20-624-NAT
Media Contact: Edwin Nieves
Phone Number
Media Contact: Simone Walter
Phone Number
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U.S. Department of Labor and Analysis Group Inc. Enter Agreement To Settle Allegations of Hiring and Compensation Discrimination

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U.S. Department of Labor and Analysis Group Inc. Enter Agreement To Settle Allegations of Hiring and Compensation Discrimination

BOSTON, MA – The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) and Boston, Massachusetts-based Analysis Group Inc. – one of the nation’s largest litigation support firms – have entered into a conciliation agreement to resolve allegations of hiring and compensation discrimination at several of the firm’s U.S. facilities.

The agreement, which follows an OFCCP investigation from Jan. 1, 2012 to Aug. 31, 2013, found that Analysis Group Inc. discriminated against 417 Asian applicants for analyst positions. In addition, the company discriminated against 10 Hispanic individuals employed as analysts and senior analysts by paying them lower bonuses in the 2013 bonus cycle than comparable white employees. The agency determined that Analysis Group Inc.’s actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color or national origin.

Analysis Group Inc. will pay a total of $410,000, including $384,636.30 in back pay and interest to the Asian applicants in analyst job positions, and will also provide analyst job opportunities to eight affected applicants. In addition, the company will pay $25,363.70 in back pay and interest to 10 Hispanic employees in analyst and senior analyst positions. Analysis Group Inc. will also take steps to ensure its personnel and compensation practices, including recordkeeping and internal auditing procedures, meet legal requirements.

“This agreement will ensure that Analysis Group Inc. has procedures in place which will help it comply with current federal hiring and compensation laws,” said Director of the Office of Federal Contract Compliance Programs Craig E. Leen.

“The Office of Federal Contract Compliance Programs is working with federal contractors to ensure equal opportunity in both hiring and pay,” said Office of Federal Contract Compliance Programs Northeast Regional Director Diana Sen.

In fiscal year 2019, Analysis Group Inc. received payments totaling over $19,000,000 in federal contracts. 

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 laws make it illegal for federal contractors and subcontractors to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or that of others, subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Office of Federal Contract Compliance Programs
Date
April 15, 2020
Release Number
20-391-BOS
Media Contact: James C. Lally
Phone Number
Media Contact: Ted Fitzgerald
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Government Contractor Pays $362,500 in Back Pay, Interest to Settle Hiring Discrimination Allegations After U.S. Department of Labor Investigation

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Government Contractor Pays $362,500 in Back Pay, Interest to Settle Hiring Discrimination Allegations After U.S. Department of Labor Investigation

NORCO, LOUISIANA – The U.S. Department of Labor and Valero Refinery Company – a global manufacturer of transportation fuels and petrochemical products in Norco, Louisiana – have entered into a conciliation agreement to resolve allegations of hiring discrimination.

After a routine Office of Federal Contract Compliance Programs (OFCCP) compliance evaluation, the Valero Refinery Company has agreed to pay $362,500 in back wages and interest as part of a conciliation agreement with the department to resolve allegations of hiring discrimination at Valero’s facility in Norco. OFCCP found that, beginning in 2014, the company systemically discriminated against Black, Hispanic, Asian and Native American Operator Trainee applicants. OFCCP determined that the company’s actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color or national origin.

In addition to the $362,500, in back pay and interest, Valero Refinery Company will provide up to seven Operator Trainee job opportunities to Black, Hispanic, Asian and Native American applicants as positions become available. Valero will also take steps to ensure its personnel practices, including recordkeeping and internal auditing procedures, meet legal requirements.

“The U.S. Department of Labor is committed to resolving discrimination issues by working with employers and employees,” said Office of Federal Contract Compliance Programs’ Southwest and Rocky Mountain Regional Director, Melissa Speer, in Dallas, Texas. Valero Refinery Company has agreed to implement changes to its hiring process to comply with federal hiring and equal employment opportunity laws.”

Valero Refinery Company has recently entered into a contract valued at more than $260 million with the Defense Logistics Agency for turbine fuel.

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 laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Office of Federal Contract Compliance Programs
Date
April 13, 2020
Release Number
20-87-DAL
Media Contact: Juan Rodriguez
Media Contact: Chauntra Rideaux
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U.S. Department of Labor Takes Actions to Facilitate Response Efforts For COVID-19 Outbreak

News Release

U.S. Department of Labor Takes Actions to Facilitate Response Efforts For COVID-19 Outbreak

Office of Federal Contract Compliance Programs issues National Interest Exemption

WASHINGTON, DC – Following President Trump’s declaration of a national emergency, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) today issued a National Interest Exemption memorandum to facilitate response efforts for COVID-19, also known as novel coronavirus.

In view of the special circumstances in the national interest presented by the novel coronavirus outbreak, OFCCP will grant a limited, three-month exemption and waiver from some of the requirements of the laws administered by the agency. OFCCP regulations authorize the OFCCP Director to exempt contracts from requiring the inclusion of any part of the equal opportunity clause in any specific contract when special circumstances in the national interest so require, when it is impracticable to act upon requests for exemptions individually, and where such waiver will contribute to convenience in the administration of the authorities enforced by OFCCP. This exemption and waiver extends to all affirmative action obligations of supply and service and construction contracts, and other obligations under Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. The exemption and waiver do not apply to the processing of complaints of discrimination under 41 CFR 60-1.21-1.24, 41 CFR 60-300.61, and 41 CFR 60-741.61. The exemption and waiver also do not exempt a covered contractor from their obligation to comply with other federal, state and local civil rights laws. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

“Following President Trump’s direction, the Office of Federal Contract Compliance Programs is committed to swiftly responding to COVID-19,” said Office of Federal Contract Compliance Programs Director Craig E. Leen. “Today’s memorandum helps federal agencies and federal contractors engaged in relief efforts to protect the safety, security and health of the American people.”

For further information about COVID-19, please visit the U.S. Department of Health and Human Services’ Centers for Disease Control and Prevention.

OFCCP is a civil rights agency in the U.S. Department of Labor. It enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. Through the administration of these laws, OFCCP holds those who do business with the federal government (contractors and subcontractors) responsible for complying with the legal requirement to take affirmative action and not discriminate on the basis of race, color, sex, sexual orientation, gender identity, religion, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discharging or otherwise discriminating against applicants or employees who inquire about, discuss or disclose their compensation or that of others, subject to certain limitations.

The mission of the U.S. Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Office of Federal Contract Compliance Programs
Date
March 18, 2020
Release Number
20-486-NAT
Media Contact: Emily Weeks
Phone Number
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UPDATED: U.S. Department of Labor and Cisco Systems Inc. Enter Agreement to Resolve Alleged Pay Discrimination in San Jose

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UPDATED: U.S. Department of Labor and Cisco Systems Inc. Enter Agreement to Resolve Alleged Pay Discrimination in San Jose

SAN JOSE, CA – Cisco Systems Inc. has agreed to pay $2,000,000 in lost wages and interest to affected employees in San Jose, California, and provide at least $2,750,000 in pay-equity adjustments to its employees nationwide in the next five years in an Early Resolution Conciliation Agreement (ERCA) after the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) claimed the company paid women, black and Hispanic employees less than comparable male and white employees in similar positions. The ERCA, which stems from an audit covering 2011-2013, also indicates that Cisco Systems Inc. does not admit liability and denies OFCCP's allegations.

Federal law prohibits workplace discrimination based on, among other categories, race, gender and national origin. 

“This agreement ensures that employees from Cisco Systems Inc. are compensated fairly, and will prevent similar issues from happening again at any of its facilities,” said Office of Federal Contract Compliance Programs’ Regional Director Jane Suhr, in San Francisco, California. 

“The Office of Federal Contract Compliance Programs is satisfied that Cisco Systems Inc. has pursued an early resolution conciliation agreement, and addressed compensation equity nationwide,” said Director of the Office of Federal Contract Compliance Programs Craig E. Leen. “OFCCP’s Early Resolution Procedures program helps ensure prompter and broader relief for America’s workforce by allowing contractors facing a potential violation to proactively correct such violations and analyze its pay practices over the next five years to ensure future companywide compliance.”

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 laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed or disclosed their compensation or the compensation of others subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Office of Federal Contract Compliance Programs
Date
March 16, 2020
Release Number
20-406-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali
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