746 applicants in Amarillo and Hereford, Texas, affected

AMARILLO, Texas — The U.S. Department of Labor's Office of Federal Contract Compliance Programs today announced that federal contractor Caviness Beef Packers Ltd., doing business as Palo Duro Meat Processing Inc. in Amarillo and Caviness Packing Co. in Hereford, has agreed to a settlement resolving findings that the company discriminated against job applicants on the bases of race and gender by rejecting them for positions at the company's two meat processing facilities.

"The law is clear," said OFCCP Director Patricia A. Shiu. "Discrimination will not be tolerated by employers who profit from lucrative government contracts. We are committed to protecting workers from discrimination, including the hundreds of qualified white, black, Asian and female job seekers involved in this case."

OFCCP conducted scheduled compliance reviews of both plants, which found that the company had violated Executive Order 11246 by failing to meet its obligations as a federal contractor to ensure that qualified job applicants receive equal consideration for employment without regard to their sex, race, color, religion or national origin. Caviness holds contracts with the U.S. Department of Agriculture in excess of $20 million.

Under the conciliation agreement, Amarillo-based Caviness Beef Packers will pay $600,000 to the 746 identified class members, including back wages and interest, and extend at least 81 offers of employment as positions become available. Additionally, the company agreed to revise its selection process for production positions to avoid future violations of its equal employment opportunity obligations.

In addition to Executive Order 11246, OFCCP's legal authority exists under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws hold those who do business with the federal government, both contractors and subcontractors, to 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. Additional information also is available at http://www.dol.gov/ofccp/.

Back wages and job offers sought for African-American, Asian and Hispanic applicants; debarment from future government contracts recommended

LEMOORE, Calif. — The U.S. Department of Labor's Office of Federal Contract Compliance Programs today filed a complaint with the department's Office of Administrative Law Judges against federal contractor Leprino Foods Co. for discriminating against qualified African-American, Asian and Hispanic applicants for on-call laborer positions at the company's Lemoore West facility.

The administrative complaint seeks back wages and interest for at least 270 class members, as well as job offers for at least 17 of the original applicants. OFCCP also is requesting that Leprino Foods' existing federal contracts be canceled and the company be debarred from entering into any future contracts until the violations are resolved and the company corrects its discriminatory employment practices.

"Leprino Foods' hiring process simply doesn't pass the sniff test," said OFCCP Director Patricia A. Shiu. "When workers are denied employment because of factors that have nothing to do with their ability to perform the job, something is not right. Our message to the company is clear: Correct your discriminatory practices and make restitution to the victims or lose your lucrative federal contracts."

Under Executive Order 11246, federal contractors cannot discriminate in employment practices with regard to race and national origin. Data collected from Leprino Foods showed that the company's use of a job skills assessment called the WorkKeys exam adversely impacted minority applicants. During OFCCP's review, which examined hiring practices for a 22-month period, the agency found that only 49 percent of otherwise qualified minority applicants passed the exam, compared with more than 72 percent of non-minority applicants. OFCCP could not substantiate the employer's claim that the exam measured applied math, workplace observation and information location skills related to the essential functions of on-call laborers. On-call laborers perform a variety of entry-level tasks, including inspecting products, monitoring equipment and maintaining sanitation at the facility.

Denver-based Leprino Foods is the nation's largest producer of mozzarella cheese. The company has contracts totaling $5 million with the U.S. Department of Agriculture to provide mozzarella and whey products to the Farm Services Agency.

In addition to Executive Order 11246, OFCCP's legal authority exists under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws hold those who do business with the federal government, both contractors and subcontractors, to 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.

Solis v. Leprino Foods Co.

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Public invited to comment during early stage of development

WASHINGTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs is considering the development of a new data tool to collect information on salaries, wages and other benefits paid to employees of federal contractors and subcontractors. The tool would improve OFCCP's ability to gather data that could be analyzed for indicators of discrimination, such as disparities faced by female and minority workers. To provide an opportunity for the public to submit feedback, the department published an advance notice of proposed rulemaking in the Aug. 10 edition of the Federal Register.

OFCCP enforces Executive Order 11246, which prohibits companies that do business with the federal government from discriminating in employment practices — including compensation — on the basis of sex, race, color, national origin or religion. Last year, the agency announced plans to create a compensation data tool in the department's fall 2010 regulatory agenda. In addition to providing OFCCP investigators with insight into potential pay discrimination warranting further review, the proposed tool would provide a self-assessment element to help employers evaluate the effects of their compensation practices.

"Today, almost 50 years after the Equal Pay Act became law, the wage gap has narrowed, but not nearly enough," said Secretary of Labor Hilda L. Solis. "The president and I are committed to ending pay discrimination once and for all."

The Labor Department's Bureau of Labor Statistics reports that in 2010 women were paid an average of 77 cents for every dollar paid to men. In addition to the gender gap, research has shown that race- and ethnicity-based pay gaps put workers of color, including men, at a disadvantage. Eliminating compensation-based discrimination is a top priority for OFCCP.

"Pay discrimination continues to plague women and people of color in the workforce," said OFCCP Director Patricia A. Shiu, a member of the president's National Equal Pay Enforcement Task Force. "This proposal is about gathering better data, which will allow us to focus our enforcement resources where they are most needed. We can't truly solve this problem until we can see it, measure it and put dollar figures on it."

The notice poses 15 questions for public response on the types of data that should be requested, the scope of information OFCCP should seek, how the data should be collected, how the data should be used, what the tool should look like, which contractors should be required to submit compensation data and how the tool might create potential burdens for small businesses. The proposal will be open to public response for 60 days, and the deadline for receiving comments is Oct. 11. To read the proposal or submit a comment, visit the federal e-rulemaking portal at http://www.regulations.gov.

In addition to Executive Order 11246, OFCCP's legal authority exists under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws hold those who do business with the federal government, both contractors and subcontractors, to 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 also available at http://www.dol.gov/ofccp/.

Agreement includes back pay and job opportunities for 39 minority and women applicants plus training for managers and human resources personnel

PHILADELPHIA — Alcoa Mill Products Inc. will pay $484,656.19 in back wages to 37 Hispanics and African-Americans as well as $35,516.88 to two women who all were rejected for job positions at the company's plant in Lancaster, Pa. The settlement resolves a finding by the U.S. Department of Labor that the company discriminated against Hispanic, African-American and female applicants for material handler positions. Alcoa Mill Products is part of Alcoa Inc., the world's leading producer of aluminum.

The department's Office of Federal Contract Compliance Programs conducted a scheduled compliance review of the Lancaster manufacturing facility from 2009 to 2010, and determined that the company had violated Executive Order 11246 by failing to meet its obligations as a federal contractor to ensure that qualified job applicants receive equal consideration for employment without regard to their sex, race, color, religion or national origin. Alcoa holds contracts with the U.S. Army in excess of $50 million.

"No worker should be denied a job because of factors that have absolutely nothing to do with his or her ability to accomplish the work," said OFCCP Director Patricia Shiu. "I am glad we reached a fair settlement with Alcoa Mill Products, one that not only provides financial remedies for the affected victims, but also creates opportunities for good jobs."

Under a conciliation agreement with OFCCP, Alcoa Mill Products has agreed to pay the back wages and extend job offers to nine of the identified class members as positions become available. Additionally, the company agreed to spend at least $20,000 on equal employment opportunity, anti-harassment and sensitivity training for its workforce, including all managers and human resources personnel involved in hiring. Finally, the company agreed to revise its selection process for material handlers.

In addition to Executive Order 11246, OFCCP's legal authority exists under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws hold those who do business with the federal government, both contractors and subcontractors, to 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 also available at http://www.dol.gov/ofccp/.

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WASHINGTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs has released a new directive to outline the process by which federal supply and service contractors can apply for Functional Affirmative Action Program agreements, which can be viewed at http://www.dol.gov/ofccp/regs/compliance/directives/dir296.htm.

"The FAAP is back and is better than before," said OFCCP Director Patricia A. Shiu. "Over the past year, I have listened to comments from the contractor community and employee groups, and determined that this is a useful tool for ensuring that federal contractors and subcontractors meet their obligations to provide equal employment opportunity for everyone. I am pleased to share updated guidance that responds to the feedback we received while also renewing our commitment to ensuring discrimination-free workplaces."

Under Executive Order 11246, any company with 50 or more employees and a federal contract of $50,000 or more is required to develop a written affirmative action program for each of its establishments. An AAP helps contractors identify and analyze potential disparities related to the employment of women and minorities. Where disparities exist, contractors can use AAPs to articulate specific procedures they will follow and good faith efforts they will make to provide equal employment opportunities. FAAP agreements allow large contractors the flexibility to create AAPs by functional or business units rather than by individual establishments. For example, a company could develop an affirmative action program for all sales associates across multiple offices in different states as opposed to creating one for each work site.

OFCCP reviewed its policies regarding the FAAP process and made significant changes, including the requirement of written approval by the OFCCP director before contractors can begin developing FAAPs, thereby eliminating the provision for automatic approval if OFCCP failed to act upon the request within 120 days; shorter terms for FAAP agreements which will now expire after three years, instead of five, at which point a renewal will have to be approved; and the possibility of a compliance evaluation by OFCCP should contractors fail to submit the required annual updates to their FAAP agreements.

All contractors who currently have an approved FAAP agreement will be required to renew it in accordance with the new guidance. Contractors without these agreements should continue to maintain and develop establishment-based AAPs. Answers to frequently asked questions about the FAAP can be found at http://www.dol.gov/ofccp/regs/compliance/faqs/faapfaqs.htm.

The new guidance rescinds a previous directive, Administrative Notice/Functional AAP, issued March 21, 2002, and ends a yearlong suspension in the acceptance of requests to develop or renew FAAP agreements while the program was under review.

In addition to Executive Order 11246, OFCCP's legal authority exists under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws hold those who do business with the federal government, both contractors and subcontractors, to the fair and reasonable standard that they not discriminate in employment on the basis of gender, race, color, religion, national origin, disability or status as a protected veteran. For more information, call OFCCP's toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

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 4212 of the Vietnam Era Veterans' Readjustment Assistance Act of 1974. Notice of the extension has been published in the June 22 Federal Register and can be viewed at http://s.dol.gov/GE.

On April 26, OFCCP published a notice of proposed rulemaking in 76 Federal Register 23358 with a comment period scheduled to end on Monday, June 27. After receiving requests for an extension, OFCCP has extended the comment period by 14 days until Monday, July 11. This action will provide additional time for interested individuals to analyze the issues and provide their comments. To view the proposed rule and submit comments, visit the federal e-rulemaking portal at http://www.regulations.gov and search by regulation identification number 1250-AA00.

The rule proposed by OFCCP would strengthen affirmative action provisions for protected veterans, detailing specific actions a contractor must take to satisfy its obligations under the law. The new rule would increase data collection obligations and require contractors to establish hiring benchmarks to measure the effectiveness of their affirmative action efforts; require contractors to engage in at least three specified types of outreach and recruitment efforts each year; and require that all job applicants be invited to self-identify as "protected veterans" before they are offered a job.

In addition to VEVRAA, OFCCP's legal authority exists under Executive Order 11246 and Section 503 of the Rehabilitation Act of 1973. As amended, these three laws hold those who do business with the federal government, both contractors and subcontractors, to the fair and reasonable standard that they not discriminate in employment on the basis of gender, 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/.

MIDDLETON, Tenn. — ThyssenKrupp Elevator Manufacturing Inc. has agreed to pay a total of $288,333 to 248 female job applicants who were systematically rejected for assembler/packer and utility positions at the company's facility in Middleton from January to December 2005, following an investigation by the U.S. Department of Labor's Office of Federal Contract Compliance Programs. In addition to the financial remedy, TKE will extend 23 job offers to affected women as positions become available.

TKE is a subsidiary of ThyssenKrupp AG, a global conglomerate based in Germany and one of the world's leading producers of elevators. TKE currently holds a $15.1 million contract to provide elevator and escalator maintenance to the General Services Administration, the U.S. federal government agency that manages most federal buildings.

During a scheduled compliance review, OFCCP determined that TKE had violated Executive Order 11246, which prohibits federal contractors and subcontractors from discriminating on the basis of sex.

"This agreement sends a powerful message that the U.S. government will not tolerate discrimination," said OFCCP Director Patricia A. Shiu. "A global company like ThyssenKrupp should know better than to underestimate the power of America's working women. When the doors of opportunity are fully open to us, there isn't a job that we can't do."

Under the terms of the agreement, in addition to paying wages and interest to affected female applicants who return timely notifications, ThyssenKrupp agreed to undertake extensive self-monitoring and corrective measures to ensure that all employment practices fully comply with the law, and to immediately correct any discriminatory practices. The company will contact the rejected applicants and make payments directly to them using address information supplied on the job applications.

In addition to Executive Order 11246, OFCCP's legal authority exists under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Act of 1974. Those who do business with the federal government, both contractors and subcontractors, are held to the fair and reasonable standard that they do not discriminate in employment on the basis of gender, 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/.

PHILADELPHIA — AstraZeneca, one of the largest pharmaceutical companies in the world, will pay $250,000 to 124 women who were subjected to pay discrimination while working at the corporation's Philadelphia Business Center in Wayne, Pa. The action resolves a lawsuit filed by the U.S. Department of Labor in May 2010 alleging that the company discriminated against female sales specialists by paying them salaries that were, on average, $1,700 less than their male counterparts.

The department's Office of Federal Contract Compliance Programs conducted a scheduled compliance review of the business center in 2002 and found that AstraZeneca had violated Executive Order 11246 by failing to meet its obligations as a federal contractor to ensure employees were paid fairly without regard to sex, race, color, religion and national origin. AstraZeneca holds a contract valued at more than $2 billion with the U.S. Department of Veterans Affairs to provide pharmaceutical products to hospitals and medical centers around the country.

"Forty-eight years after President Kennedy signed the Equal Pay Act, women are still fighting for fundamental fairness when it comes to how we are paid," said OFCCP Director Patricia A. Shiu, a member of President Obama's National Equal Pay Enforcement Task Force. "I am glad AstraZeneca finally has agreed to pay its employees what they've earned. More importantly, we look forward to working with the company's management to make sure this does not happen again to anyone who works for AstraZeneca."

Under a consent decree and order filed with the department's Office of Administrative Law Judges, in addition to making financial restitution, the company has agreed to work with OFCCP to conduct a statistical analysis of the base pay of 415 individuals employed full time as "primary care" and "specialty care" level III pharmaceutical sales specialists in Alabama, Delaware, Indiana, Kentucky, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia and the District of Columbia. If the analysis concludes that female employees continue to be underpaid, the company will adjust salaries accordingly.

Finally, AstraZeneca has agreed to develop and annually update its affirmative action plan and keep all supporting documentation as required by law. If the company fails to comply with the consent decree, it may be subject to sanctions, including cancellation of its current federal contract and debarment from acquiring future ones.

In addition to Executive Order 11246, OFCCP's legal authority exists under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws hold those who do business with the federal government, both contractors and subcontractors, to 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 also available at http://www.dol.gov/ofccp.

OFCCP, U.S. Department of Labor v. AstraZeneca Docket Number: 2010-OFC-00005

More than 1,650 qualified female applicants denied jobs at 4 Midwest plants

WASHINGTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs today announced that Tyson Fresh Meats Inc. has entered into two consent decrees to settle allegations of sex discrimination. The Dakota Dunes, S.D. — based company will pay a total of $2.25 million in back wages, interest and benefits to more than 1,650 qualified female job applicants who were rejected for employment at facilities in Joslin, Ill.; West Point, Neb.; and Waterloo and Denison, Iowa. Tyson Fresh Meats is a subsidiary of Springdale, Ark.-based Tyson Foods Inc., a federal contractor and one of the world's largest processors of beef and pork.

"Companies that profit from federal contracts must not discriminate in employment decisions," said Secretary of Labor Hilda L. Solis. "Today's settlement, one of the largest in OFCCP's history, means that women who were unfairly denied job opportunities will be compensated."

During scheduled compliance reviews of the four facilities, OFCCP determined that Tyson Fresh Meats had violated Executive Order 11246, which prohibits federal contractors from discriminating on the basis of sex. Under the terms of the decrees, the $2.25 million settlement will be divided among the rejected female job applicants. Tyson also has agreed to offer jobs to at least 220 of the affected women as positions become available in Joslin, Waterloo and Denison. The West Point plant closed in 2006. Finally, Tyson will undertake extensive self-monitoring and corrective measures to ensure that its employment practices fully comply with the law.

These consent decrees resolve the latest lawsuits in a string of cases brought by OFCCP against subsidiaries of Tyson Foods Inc. In 2008, a Labor Department administrative law judge found that TNT Crust in Green Bay, Wis., systematically had discriminated against Latino applicants in its entry-level position hiring. Last year, OFCCP settled a case against Tyson Refrigerated Processed Meats after finding evidence that the company had discriminated against 157 African-American and 375 Caucasian job applicants at the company's bacon processing plant in Vernon, Texas.

"A year after filing suit, the Labor Department has made good on a promise to those job seekers who were denied the opportunity to work simply because they are women," said OFCCP Director Patricia A. Shiu. "We will remain vigilant, particularly with a serial offender like Tyson, to protect the rights of workers who can and should expect basic fairness from a company that profits mightily from doing business with the federal government."

Tyson Foods Inc. has received federal contracts totaling more than $200 million in each of the past three years and recently was awarded another $8 million contract to provide beef and pork products for resale at two commissary stores in Guam. The company is a major supplier for the U.S. Departments of Defense and Agriculture, and is one of the largest employers in Joslin, Waterloo and Denison.

In addition to Executive Order 11246, OFCCP's legal authority exists under Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws hold those who do business with the federal government, both contractors and subcontractors, to 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.

WASHINGTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs today announced a proposed rule to strengthen affirmative action requirements of federal contractors and subcontractors for veterans protected under the Vietnam Era Veterans' Readjustment Assistance Act of 1974. Veterans protected by VEVRAA include those with disabilities and those recently discharged as well as those who served during a war, campaign or expedition for which a campaign badge is authorized. The proposed rule will be published in the April 26 edition of the Federal Register.

"At the Labor Department, we support veterans as they seek meaningful ways to apply their talents to expand the American economy. By re-examining our affirmative action requirements, we will ensure that our nation's veterans are protected against discrimination and provided equal opportunity in the workforce," said OFCCP Director Patricia A. Shiu.

The award of a federal contract comes with a number of responsibilities. Among them are complying with non-discrimination and affirmative action provisions, engaging in meaningful and effective efforts to recruit and employ veterans protected under VEVRAA, and maintaining accurate records on affirmative action efforts. Failure to abide by these responsibilities may result in various sanctions, from withholding progress payments to termination of existing contracts and debarment from receiving future ones.

The framework articulating a contractor's responsibilities with respect to affirmative action, recruitment and placement has remained unchanged since 1976. Increasing numbers of veterans are returning from tours of duty, and many are faced with substantial obstacles in finding employment upon leaving the service.

The proposed rule clarifies mandatory job listing requirements, under which a contractor must provide job vacancy and contact information for each of its locations to an appropriate employment service delivery system. The rule proposes requiring contractors to engage in at least three specified types of outreach and recruitment efforts each year. In addition, the proposed rule would require that all applicants be invited to self-identify as a "protected veteran" before they are offered a job. Increasing data collection on job referrals, applicants and hires, and requiring contractors to establish hiring benchmarks to assist in measuring the effectiveness of their affirmative action efforts also are proposed.

Comments on the notice of proposed rulemaking must be submitted by June 27. Visit the federal e-rulemaking portal, http://www.regulations.gov, to submit comments.

In addition to VEVRAA, OFCCP's legal authority exists under Executive Order 11246 and Section 503 of the Rehabilitation Act of 1973. As amended, these three laws hold those who do business with the federal government, both contractors and subcontractors, to the fair and reasonable standard that they not discriminate in employment on the basis of gender, 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.