Agency Acronym
OFCCP
DOL Search Collections ID
4948

Tufts Associated Health Plans Inc. to pay more than $372,000 to 12 minority workers to settle Labor Department charges of retaliation

News Release

Tufts Associated Health Plans Inc. to pay more than $372,000 to 12 minority workers to settle Labor Department charges of retaliation

BOSTON — Tufts Associated Health Plans Inc. has agreed to pay $372,739 to 12 Asian, Hispanic and African American workers following an investigation by the U.S. Department of Labor's Office of Federal Contract Compliance Programs. The agreement settles allegations that the Massachusetts-based federal contractor violated provisions of Executive Order 11246 by retaliating against employees that OFCCP had determined were victims of discrimination in an earlier investigation.

"Our job is to protect workers, promote diversity and enforce the law," said OFCCP Director Patricia A. Shiu. "That responsibility to workers continues long after an investigation ends. Any effort to retaliate against workers who have already been victimized by unfair treatment only compounds the problem and will not be tolerated by this administration."

In May 2009, Tufts agreed to hire minority workers as customer service representatives to settle an OFCCP finding that the contractor's hiring practices discriminated against minorities. On March 10, 2010, OFCCP received a complaint of discrimination from an individual hired under that agreement, alleging he had been terminated due to his race and retaliated against due to his status as an OFCCP class member. The worker alleged that minority class members were segregated from other employees and held to stricter standards than non-class members during the training program.

OFCCP's subsequent investigation determined that retaliation against 12 class members occurred in the timing, application and implementation of the company's customer service training program, resulting in their termination from the program.

In addition to paying $372,739 to the class members, Tufts has agreed to ensure full compliance with Executive Order 11246 by providing training to managers and trainers involved in enforcing the equal employment opportunity and non-retaliation provisions of the Executive Order.

Tufts Associated Health Plans Inc. offers a full array of health coverage options including Medicare Part D prescription benefits, which it offers under a contract with the Centers for Medicare and Medicaid Services for the operation of a Voluntary Medicare Prescription Drug Plan. The total contract amount for Part D prescription benefits for the period of January through May 2012 alone was $84.5 million.

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/.

Agency
Office of Federal Contract Compliance Programs
Date
July 17, 2013
Release Number
13-0901-BOS
Media Contact: Ted Fitzgerald

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

News Release

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/.

Agency
Office of Federal Contract Compliance Programs
Date
April 25, 2013
Release Number
13-0706-SAN

Bertucci Contracting settles discrimination case with US Labor Department

News Release

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/.

Agency
Office of Federal Contract Compliance Programs
Date
May 1, 2013
Release Number
13-0565-DAL

US Labor Department rescinds restrictions on investigating pay discrimination

News Release

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.

Agency
Office of Federal Contract Compliance Programs
Date
February 26, 2013
Release Number
13-0305-NAT

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

News Release

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.)

Agency
Office of Federal Contract Compliance Programs
Date
January 17, 2013
Release Number
13-0030-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

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

News Release

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, Minn.-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/.

Agency
Office of Federal Contract Compliance Programs
Date
December 18, 2012
Release Number
12-2228-SAN
Media Contact: Jose Carnevali

US Labor Department settles lawsuit with Nash Finch for $188,500

News Release

US Labor Department settles lawsuit with Nash Finch for $188,500

Minnesota-based food distributor to pay back wages to 84 women — and provide job offers — to settle allegations of sex discrimination at North Carolina facility

LUMBERTON, N.C. — The U.S. Department of Labor's Office of Federal Contract Compliance Programs has reached an agreement with federal contractor Nash Finch Co. to settle allegations of hiring discrimination against female job applicants at the company's distribution facility in Lumberton. In consent findings approved by the department's Office of Administrative Law Judges, Nash Finch Co. has agreed to pay $188,500 in back wages and interest to 84 women who were rejected for the entry-level position of order selector at the company's distribution facility in Lumberton.

"I am glad we were able to achieve a fair resolution in this case," said Solicitor of Labor M. Patricia Smith. "Our economy cannot afford to lose the skills and talents of millions of American women who count on us to enforce equal opportunity laws so that they can find good jobs without fear of discrimination."

OFCCP investigators conducted a review of Nash Finch's employment practices at the Lumberton facility from May 1, 2005, to Dec. 31, 2006. Based on their findings, the agency asserted that Nash Finch had failed to ensure qualified female job applicants received equal consideration for employment without regard to sex as required by Executive Order 11246. OFCCP filed a complaint with the Labor Department's Office of Administrative Law Judges on Nov. 30, 2010, alleging that Nash Finch systematically had discriminated against women who applied for jobs as order selectors during a nine-month period in 2006.

"Our government relies on thousands of private companies to produce the goods and provide the services that we depend on to do our jobs," said OFCCP Director Patricia A. Shiu. "It is in everyone's best interest that contractors like Nash Finch succeed. But, for federal contractors, success is not measured solely by performing a task or providing a service. True success means that, as required by law, every qualified worker has a fair shot at jobs funded by taxpayer dollars."

In addition to the financial remedies, the settlement requires Nash Finch to extend job offers to up to 12 women in the original class as order selector positions become available. The company must also submit progress reports to OFCCP for the next two years.

Women who applied and were rejected for order selector positions at Nash Finch's Lumberton facility between March 1 and Dec. 31, 2006, may be eligible for the back wages, interest and job opportunities in this settlement. The company will attempt to contact all class members to explain their eligibility for these remedies. However, anyone who does not receive such a notice and believes the omission is an error can contact OFCCP's toll-free helpline at 800-397-6251 (TTY: 877-889-5627) for more information.

Nash Finch is based in Minneapolis and is the second-largest publicly traded wholesale food distributor in the nation. The company distributes food products to military commissaries around the world. Since the start of the OFCCP review period on May 1, 2005, Nash Finch has received payments of more than $14 million from the U.S. Department of Defense.

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 about the agency, call OFCCP's helpline or visit its website at http://www.dol.gov/ofccp/.

Solis v. Nash Finch Co. Case Number: 2011-OFC-00004

Agency
Office of Federal Contract Compliance Programs
Date
September 28, 2012
Release Number
12-1871-ATL
Media Contact: Michael Trupo
Phone Number

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

News Release

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

Agency
Office of Federal Contract Compliance Programs
Date
September 17, 2012
Release Number
12-1804-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

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

News Release

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

Agency
Office of Federal Contract Compliance Programs
Date
September 4, 2012
Release Number
12-1709-CHI

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

News Release

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/.

Agency
Office of Federal Contract Compliance Programs
Date
July 19, 2012
Release Number
12-1443-SAN
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