Agency Acronym
OFCCP
DOL Search Collections ID
4948

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

News Release

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/.

Agency
Office of Federal Contract Compliance Programs
Date
June 25, 2012
Release Number
12-0576-DAL

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

News Release

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/.

Agency
Office of Federal Contract Compliance Programs
Date
March 22, 2012
Release Number
12-0507-NAT
Media Contact: Michael Trupo
Phone Number
Media Contact: Laura McGinnis

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

News Release

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/.

Agency
Office of Federal Contract Compliance Programs
Date
March 15, 2012
Release Number
12-0403-KAN
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

US Labor Department extends comment period on proposed rule to improve employment opportunities for workers with disabilities

News Release

US Labor Department extends comment period on proposed rule to improve employment opportunities for workers with disabilities

Interested parties may submit comments through Feb. 21

WASHINGTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs has announced a 14-day extension of the comment period for its proposed rule to revise regulations implementing Section 503 of the Rehabilitation Act of 1973, which obligates most federal contractors and subcontractors to ensure equal employment opportunity for qualified workers with disabilities.

On Dec. 9, 2011, OFCCP published a notice of proposed rulemaking in 76 Federal Register 77056 with a comment period originally set to end on Feb. 7, 2012. After reviewing requests for an extension, OFCCP has extended the comment period by 14 days until Tuesday, Feb. 21. This action will provide additional time for interested parties to analyze the issues raised in the proposal and to provide their comments. Individuals and organizations who already have submitted comments may use the extension period to revise or add to their original comments.

To learn more about the proposed rule and submit comments, visit http://www.dol.gov/ofccp/503/.

The rule proposed by OFCCP would strengthen the affirmative action and reporting obligations of federal contractors by requiring them to set a hiring goal of having 7 percent of their employees be qualified workers with disabilities. The proposed changes also detail mandatory actions contractors would have to take in the areas of recruitment, training, record-keeping and dissemination of affirmative action policies — obligations 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 of contractors by providing specific guidance on how to comply with the law.

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/.

Agency
Office of Federal Contract Compliance Programs
Date
February 7, 2012
Release Number
12-0248-NAT
Media Contact: Laura McGinnis
Media Contact: Jason Surbey
Phone Number

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

News Release

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/.

Agency
Office of Federal Contract Compliance Programs
Date
January 12, 2012
Release Number
12-0015-DAL
Media Contact: Juan Rodriguez

US Labor Department files complaint against Cargill Meat Solutions for discrimination at Springdale, Ark., facility

News Release

US Labor Department files complaint against Cargill Meat Solutions for discrimination at Springdale, Ark., facility

Suit seeks back wages and job offers for more than 4,000 affected job applicants, cancellation of federal contracts

SPRINGDALE, Ark. — The U.S. Department of Labor's Office of Federal Contract Compliance Programs has filed an administrative complaint against federal contractor Cargill Meat Solutions, alleging that the company systematically discriminated against 4,069 qualified female, white, black, Hispanic and Native American applicants who sought entry-level production jobs at its Springdale facility.

The complaint was filed with the department's Office of Administrative Law Judges after OFCCP was unable to secure a fair resolution from Cargill Meat Solutions to pay back wages and interest to the rejected job applicants and extend job offers to at least 167 of the affected workers. OFCCP is seeking cancellation of Cargill Meat Solutions' existing government contracts and debarment from entering into future contracts until the company resolves all violations and corrects its discriminatory employment practices.

"This is an unfortunate case in which thousands of qualified workers were denied the opportunity to compete fairly for jobs in a tough economy," said OFCCP Director Patricia A. Shiu. "Cargill has discriminated against vulnerable workers. OFCCP is prepared to use every tool at our disposal, including canceling a company's federal contracts when necessary, to achieve the goal of equal opportunity for workers."

OFCCP discovered the company's discriminatory practices during a scheduled review to determine its compliance with Executive Order 11246, which prohibits federal contractors from discriminating on the basis of race, national origin or sex when making hiring decisions. The investigation found that the company's selection criteria were subjectively and inconsistently applied. As a result, women were less likely to be employed in entry-level production jobs, and Asian and Pacific Islander job seekers were unfairly favored over other racial groups.

Cargill Meat Solutions, a wholly-owned subsidiary of Minneapolis, Minn.-based Cargill Inc., currently holds contracts totaling at least $60 million* with the U.S. Department of Defense. The Springdale facility processes turkeys for sale under the brand names Honeysuckle White and Riverside.

OFCCP enforces Executive Order 11246, the Vietnam Era Veterans' Readjustment Assistance Act and Section 503 of the Rehabilitation Act of 1973. 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. Cargill Meat Solutions, case number: 2012-OFC-00001

*The original version of this press release incorrectly reported that Cargill Meat Solutions currently holds contracts in excess of $550 million with the U.S. Department of Defense. That number reflects some contracts that have since closed, and are no longer current.

Agency
Office of Federal Contract Compliance Programs
Date
November 29, 2011
Release Number
11-1648-DAL
Media Contact: Juan Rodriguez

Nishimoto Trading Co. will pay $400,000 to 71 women to settle US Labor Department sex discrimination allegations

News Release

Nishimoto Trading Co. will pay $400,000 to 71 women to settle US Labor Department sex discrimination allegations

Women denied employment at Santa Fe Springs, Calif., branch to receive back pay and job offers

LOS ANGELES — The U.S. Department of Labor's Office of Federal Contract Compliance Programs has reached an agreement with federal contractor Nishimoto Trading Co. to settle findings of hiring discrimination. In a conciliation agreement with the department, Nishimoto will pay $400,000 in back wages and interest to 71 women who were rejected for sales associate positions at the company's facility in Santa Fe Springs, Calif.

"Those who do business with our government are expected to follow our laws," said Secretary of Labor Hilda L. Solis. "I am pleased the Department of Labor was able to work out a fair settlement with Nishimoto that will guarantee women the right to compete fairly for good jobs."

Based on a compliance evaluation of the company's Santa Fe Springs facility conducted by OFCCP's Los Angeles District Office, investigators determined that Nishimoto failed to ensure qualified job applicants received equal consideration for employment without regard to gender as required by Executive Order 11246. Under the terms of the settlement agreement, Nishimoto will extend job offers to 14 women in the original class as sales associate positions become open. The company also has agreed to improve training for personnel involved in the selection process. In addition, Nishimoto must undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law and immediately correct any discriminatory practices.

Tokyo, Japan-based Nishimoto operates U.S. branch offices in Atlanta, Ga.; Chicago, Ill.; Dallas, Texas; Denver, Colo.; Honolulu, Hawaii; Las Vegas, Nev.; Miramar, Fla.; Phoenix, Ariz.; San Diego and San Francisco, Calif.; Seattle, Wash.; Carlstadt, N.J.; and Elkridge, Md. The company holds federal contracts totaling $1.2 million with the U.S. Department of Defense to sell Asian foods at commissaries.

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/.

Agency
Office of Federal Contract Compliance Programs
Date
November 17, 2011
Release Number
11-1642-SAN

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

News Release

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

Agency
Office of Federal Contract Compliance Programs
Date
December 1, 2011
Release Number
11-1625-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

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

News Release

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/.

Agency
Office of Federal Contract Compliance Programs
Date
December 8, 2011
Release Number
11-1614-NAT
Media Contact: Laura McGinnis
Media Contact: Michael Trupo
Phone Number

Federal contractor Caviness Beef Packers agrees to pay $600,000 to applicants to resolve allegations of hiring discrimination

News Release

US district court rules United Space Alliance must give US Labor Department access to information for review of its Cape Canaveral, Fla., facility

Decision supports February ruling by Office of Administrative Law Judges

WASHINGTON — The U.S. District Court for the District of Columbia has ruled that United Space Alliance LLC must supply the U.S. Department of Labor's Office of Federal Contract Compliance Programs with compensation information requested for a review of the company's Cape Canaveral, Fla., facility. The ruling upholds a Feb. 28 decision by the department's Office of Administrative Law Judges.

"Workplace discrimination is not universal, but it is far too common — and the people who suffer most are the American workers," said OFCCP Director Patricia A. Shiu. "At OFCCP, we are charged with identifying which federal contractors discriminate in their hiring and pay practices, and which are abiding by the law. We cannot serve our mission to protect workers if companies refuse to give us access to the records they promised to keep and share with us when they signed their contracts."

United Space Alliance, a spaceflight operations company and a joint venture between Boeing Co. and Lockheed Martin Corp., holds contracts with NASA worth at least $8 billion dollars.

In 2009, OFCCP asked for information about United Space's affirmative action program and supporting documents to conduct a scheduled compliance review. The initial review raised questions about the company's pay practices, leading OFCCP to request additional data and records in order to complete the evaluation. The company refused to provide the records or to allow OFCCP access to its premises to gather the requested information.

In November 2010, the Labor Department's Office of the Solicitor filed a complaint with the department's Office of Administrative Law Judges alleging denial of access and requesting that United Space Alliance be compelled to comply with the requirements of Executive Order 11246, Section 503 of the Rehabilitation Act and Section 4212 of the Vietnam Era Veterans' Readjustment Assistance Act, as well as permit OFCCP access to its facility and records.

Following a February 2011 hearing, an administrative law judge ruled in favor of OFCCP and issued a recommended decision and order that the company provide access to the requested compensation information within 30 days or be subject to contract suspension, cancellation and debarment. After additional administrative procedures, United Space Alliance sought review of the decision by the U.S. District Court for the District of Columbia under the Administrative Procedures Act.

In a Nov. 14 decision, Chief Judge Royce C. Lamberth ruled in favor of OFCCP on all issues — rejecting every major argument United Space Alliance made — and ordered the contractor to provide the requested documentation. "The [d]epartment has merely required United Space to submit data about its employee compensation," said Lamberth. "Submission to such lawful investigations is the price of working as a federal contractor."

Lamberth's order will become enforceable on Nov. 28.

OFCCP enforces Executive Order 11246, 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.

Agency
Office of Federal Contract Compliance Programs
Date
November 15, 2011
Release Number
11-1608-ATL
Media Contact: Laura McGinnis
Media Contact: Michael Trupo
Phone Number
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