Agency Acronym
OFCCP
DOL Search Collections ID
4948

Hewlett-Packard settles hiring discrimination case; agrees to pay $750K in back wages, interest to more than 500 Arkansas applicants

News Release

Hewlett-Packard settles hiring discrimination case; agrees to pay $750K in back wages, interest to more than 500 Arkansas applicants

US Labor Department finds federal contractor denied opportunity to minority candidates

CONWAY, Ark. – Landing a job that pays an average of $50,000 a year with a household name in the information technology industry is something to make any worker proud. It was an opportunity denied allegedly to more than 500 job applicants at the Hewlett-Packard Co. in Conway, as the company failed to provide equal opportunity for workers of all races and ethnicities to compete for well-paid professional positions.

The U.S. Department of Labor’s Office of Federal Contract Compliance Programs announced today that HP has agreed to pay $750,000 in back wages and interest to settle allegations of hiring discrimination. The action affects 504 qualified applicants – including 349 African Americans, one American Indian/Alaskan Native, 109 Asians, 44 Hispanics and one Native Hawaiian/Pacific Islander – who the company rejected for Inside Sales Representative positions at its Conway location. Executive Order 11246 prohibits federal contractors such as HP from discriminating in employment based on race or national origin.

“This settlement reflects a mutual commitment between the U.S. Labor Department and Hewlett-Packard to ensure that all workers have a fair shot at competing for good jobs,” said OFCCP Director Patricia Shiu. “Where hiring practices are barriers to equal opportunity, federal contractors have an obligation to break down those barriers and reform the process.”

After an investigation that included rigorous statistical analysis, employee and applicant interviews, and a review of information supplied by the company, OFCCP concluded that HP discriminated against qualified minorities who applied for inside sales representative positions between December 2008 and August 2010.

In its conciliation agreement with OFCCP, HP denies liability, but will pay back wages and interest to the affected class members. The company has also agreed to place 33 of the applicants into inside sales representative positions, with retroactive seniority for the new hires, as positions become available. HP will also undertake extensive measures to ensure that its personnel practices, including record keeping, comply with the law.

HP provides automatic data processing, telecommunication services and other computer-related services to the federal government. During the period reviewed in this investigation, the company received more than $200 million in federal contracts.

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

OFCCP recently launched the Class Member Locator. The purpose of the CML is to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief and/or consideration for job placement under an OFCCP conciliation agreement.  If you think you may be a class member who applied to Hewlett-Packard’s Conway, Arkansas facility between December 2008 and August 2010, please visit our website at: http://www.dol.gov/ofccp/CML/index.htm , where you can also find information about other recent OFCCP settlements.

Agency
Office of Federal Contract Compliance Programs
Date
September 21, 2016
Release Number
16-1691-DAL
Media Contact: Chauntra Rideaux
Media Contact: Juan Rodriguez

US Department of Labor sues Maryland contractor for discriminating against Hispanic, African-American employees

News Release

US Department of Labor sues Maryland contractor for discriminating against Hispanic, African-American employees

Potomac Abatement’s actions affected at least 162 workers at many DC- area work sites

JESSUP, Md. – The U.S. Department of Labor has filed a lawsuit alleging a Maryland demolition contractor discriminated against more than 150 Hispanic and African-American workers and allowed harassment of employees based on race and national origin.

The suit follows an investigation by the department’s Office of Federal Contract Compliance Programs that found Potomac Abatement, Inc., forced at least 145 Hispanic employees into lower-paying jobs and subjected them to ongoing harassment because of their race or national origin, and discriminated against at least 17 African Americans by terminating them because of their race. The Hispanic and African-American workers were employed as skilled field technicians and unskilled laborers at construction sites in the Washington, D.C., metropolitan area in 2011-2012. The complaint alleges that these violations have continued to the present.

The department also alleges that Potomac mistreated its Hispanic employees by denying them basic on-the-job necessities that were provided to other workers; allowed supervisors to illegally harass Hispanic employees, including sexual harassment of Hispanic female workers; and retaliated against Hispanic employees who complained about their treatment. It also alleges a number of other violations of Potomac’s obligations as a federal contractor, including failure to recruit minorities, women, protected veterans, and qualified individuals with disabilities, and failure to maintain required personnel and employment records.

“Our investigation found egregious behavior by Potomac Abatement and its supervisors toward its workers,” said OFCCP Director Patricia A. Shiu. “Potomac Abatement’s treatment of its workers is appalling. As a federal subcontractor, this employer is supported with taxpayer funds and, as such, agrees to uphold the highest standards and fulfill its legal responsibilities.”

Filed with the department’s Office of Administrative Law Judges, the suit asks that Potomac be ordered to restore back wages for the Hispanic and African-American workers, reinstate the laid-off African-American workers, and develop and implement a compliant equal employment opportunity policy.

Based in Jessup, Potomac Abatement specializes in demolition work, particularly asbestos abatement. The company has served as a subcontractor on several federal construction contracts and performed work for the Marine Corps, the Smithsonian Institution, Internal Revenue Service, and the U.S. Departments of Labor and Veterans Affairs.

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

# # #

OFCCP v. Potomac Abatement Inc.
Docket No. 2016-OFC-00008

Agency
Office of Federal Contract Compliance Programs
Date
August 30, 2016
Release Number
16-1733-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

Colonial Parking, Inc. settles charges of hiring, pay discrimination with US Labor Department after contractor compliance review

News Release

Colonial Parking, Inc. settles charges of hiring, pay discrimination with US Labor Department after contractor compliance review

Agrees to pay nearly $250K to African-American applicants, employees

ARLINGTON, Va. – The largest parking operator in the Washington, D.C., metropolitan area has entered into a conciliation agreement with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs to resolve allegations of race-based hiring and pay discrimination.

Colonial Parking, Inc. entered into the agreement after an OFCCP compliance evaluation found that the company discriminated against African-American applicants for project manager positions at its District-area parking facilities. The agency also found the company paid African-American parking valet attendants less than their Hispanic coworkers; on average, the African-American valet attendants made $2,100 less per year than Hispanic employees in the same position, regardless of the job assignment and location.  OFCCP determined that these actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color or national origin.

Colonial Parking has contracts with the U.S. Secret Service and the International Trade Commission’s Office of Procurement Operations valued at more than $6.8 million.

“The law is very clear: federal contractors must provide a level playing field for workers through equal employment opportunities,” said OFCCP Director Patricia Shiu. “All workers deserve a fair shot at getting and keeping a job, and federal contractors who deny this opportunity through discriminatory employment practices will be held accountable.”

While not admitting liability, Colonial agreed to pay $180,194.61 in back pay and interest to 20 African Americans who applied for the project manager positions. Colonial will also provide three project manager job opportunities to affected applicants. In addition, the company will make job grade and pay-rate adjustments, will pay $67,768.21 in back wages and interest to 54 African-American employees working as valet attendants, and will review and revise a number of its hiring, training, compensation and other practices.

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

If you are an African American who applied for work as a project manager at Colonial Parking, Inc. from Jan. 1, 2012 through Dec. 31, 2012, and you were not hired, or if you are an African American who worked as a valet attendant at Colonial during that period and no longer work there, please visit OFCCP’s recently launched Class Member Locator (www.dol.gov/ofccp/CML/index.htm), which identifies applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief and/or consideration for job placement. You can also find more information about OFCCP settlements by calling 844-438-0272.

Agency
Office of Federal Contract Compliance Programs
Date
August 1, 2016
Release Number
16-1080-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson

Division of Norfolk Southern settles charges of hiring discrimination at Roanoke facility in agreement with US Labor Department

News Release

Division of Norfolk Southern settles charges of hiring discrimination at Roanoke facility in agreement with US Labor Department

Federal contractor to pay nearly $500K to 2,086 African-American applicants

ROANOKE, Va. – A division of one of the nation’s leading transportation companies has entered into a conciliation agreement with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs  to resolve allegations of race-based hiring discrimination.   

Norfolk Southern Corp. is a federal contractor that, in recent years, has had more than $10 million in contracts with the Federal Highway Administration, U.S. Department of the Navy, U.S. Department of Air Force and U.S. Fish & Wildlife Services.

Maintenance of Way #34 – a business unit in Norfolk Southern’s engineering department – entered into the agreement after OFCCP determined the company failed to provide equal employment opportunities to 2,086 African Americans who applied for the track laborer and building and bridge laborer positions at the company’s Roanoke facility. During its scheduled compliance evaluation, OFCCP found that – from Jan. 1, 2010, through Dec. 31, 2011 – Maintenance of Way #34 engaged in hiring practices that discriminated against African-American applicants. 

The company’s actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race or color in their employment practices.

“Workers should never be denied a fair shot at employment because of factors that have absolutely nothing to do with their ability to effectively perform the job,” said OFCCP Director Patricia A. Shiu. “This case highlights our commitment to combatting discrimination that gets in the way of equal employment opportunities for qualified workers.”

Under the terms of the agreement, the company, which has not admitted liability, will pay $492,000 in back pay and interest to the African-American applicants. Norfolk Southern also agreed to make job offers to seven of the non-selected applicants. Additionally, the company has agreed to discontinue use of the selection procedures in question for the track laborer and building and bridge laborer positions, and to review and modify its employment practices including recruitment, screening, interviewing, selection, rejection and hiring in order to comply with Executive Order 11246. The agreement resolves all violations found by OFCCP.

Norfolk Southern is one of the nation’s oldest transportation companies, and operates approximately 20,000 route miles in 22 states and the District of Columbia. It is a major transporter of coal, automotive, and industrial products. Its Maintenance of Way #34 business unit is responsible for maintenance of the Virginia rail tracks throughout the state, including highways, roads, streets, and other management and consulting 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 laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed or disclosed their compensation or that of others, subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

OFCCP recently launched the Class Member Locator. The purpose of the CML is to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief and/or consideration for job placement. If you are an African American who applied for work as a track laborer or building and bridge laborer with Norfolk Southern’s Maintenance of Way #34 business unit  in Roanoke from Jan. 1, 2010, to Dec. 31, 2011, and were not hired, please visit our website at http://www.dol.gov/ofccp/CML/index.htm, where you can also find information about this and other recent OFCCP settlements, or call 844-438-0272.

Agency
Office of Federal Contract Compliance Programs
Date
July 5, 2016
Release Number
16-0975-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson

Jennie-O Turkey Store to pay $492K in back wages to 339 female applicants after US Labor Department investigation found hiring discrimination

News Release

Jennie-O Turkey Store to pay $492K in back wages to 339 female applicants after US Labor Department investigation found hiring discrimination

Department reviews federal contractor’s employment practices at Willmar facility

WILLMAR, Minn. – Jennie-O Turkey Store Inc. has agreed to hire 53 women and pay $491,861 in back wages to 339 female job applicants denied entry-level jobs at its Willmar turkey-processing facility. The company’s action resolves a U.S. Department of Labor lawsuit alleging the global turkey products producer discriminated in its hiring practices.

Jennie-O Turkey Store has received nearly $360 million in federal contracts as a supplier to the U.S. Department of Agriculture for schools and food banks. The company is the nation’s second largest producer of whole and processed turkey products sold to retail and foodservice outlets.

A review by the department’s Office of Federal Contract Compliance Programs found Jennie-O’s selection practices discriminated against qualified female applicants for laborer positions from February 2009 to February 2010 in violation of Executive Order 11246. The review prompted the department to file the suit and a consent decree simultaneously to resolve the issue. A judge in the Office of Administrative Law Judges has entered an order adopting the consent decree. The company did not admit liability.

“Discrimination can be prevented when employers have non-discriminatory selection procedures in place and make certain that they are followed,” said OFCCP Director Patricia A. Shiu. “Jennie-O has worked proactively with our agency to resolve the agency’s findings of discrimination and has agreed to train personnel involved in the selection process to ensure that non-discriminatory policies are carried out going forward.”

Based in Willmar, Jennie-O Turkey Store, Inc. is a wholly owned subsidiary of Hormel Foods Corporation. The company has nearly 7,000 employees who produce more than 1,500 products distributed in more than 70 countries worldwide. Jennie-O has been a recognized leader in the turkey processing industry for more than 70 years.

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

OFCCP recently launched the Class Member Locator (CML). The purpose of the CML is to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief and/or consideration for job placement. If you think you may be a class member who applied to Jennie-O Turkey Store’s Willmar facility between February 2009 and February 2010, please visit our website at: http://www.dol.gov/ofccp/CML/index.htm, where you can also find information about other recent OFCCP settlements, or call 877-716-9783.

Agency
Office of Federal Contract Compliance Programs
Date
June 21, 2016
Release Number
16-0904-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

US Labor Department announces updated sex discrimination regulations for federal contractors

News Release

US Labor Department announces updated sex discrimination regulations for federal contractors

WASHINGTON – Women make up a significant share of the U.S. workforce, but sex discrimination remains an unfortunate reality. To address this issue, the U.S. Department of Labor is publishing new sex discrimination regulations that update – for the first time in over 40 years – the department’s interpretation of Executive Order 11246 to reflect the current state of the law and the reality of a modern and diverse workforce. Updated rules on workplace sex discrimination will mean clarity for federal contractors and subcontractors and equal opportunities for both men and women applying for jobs with, or already working for, these employers.

“We have made progress as a country in opening career opportunities for women that were, for decades, the province of men. Yet, there is more work that lies ahead to eradicate sex discrimination. This is why it is important that we bring these old guidelines from the ‘Mad Men’ era to the modern era, and align them with the realities of today’s workplaces and legal landscape,” said director of the Office of Federal Contract Compliance Programs Patricia A. Shiu.

“The rule adopted today will mean that long debunked stereotypes will not keep workers from getting a new job or a promotion,” said director of the Women’s Bureau Latifa Lyles. “This is an important reminder that there is no such thing as ‘women’s work’ or ‘men’s work,’ there is only work.”

The final rule updates OFCCP’s sex discrimination regulations to make them consistent with current law. It makes explicit the protections against compensation discrimination; sexually hostile work environments; discrimination based on pregnancy, childbirth or related medical conditions; and discrimination based on unlawful sex stereotypes, gender identity, and transgender status. The regulations also promote fair pay practices.

The rule implements Executive Order 11246, which prohibits companies with federal contracts and subcontracts from discriminating in employment on the basis of sex.

OFCCP will publish the final rule in an upcoming edition of the Federal Register.

Today’s announcement comes as the White House Council on Women and Girls convenes for the first “United State of Women” Summit. The event serves as a large-scale effort to bring together advocates of gender equality and highlight areas of progress, as well as identify and meet remaining challenges. Experts, advocates, and grassroots and business leaders in both domestic and international arenas will be among those participating.

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

More information, including a fact sheet and the text of the Final Rule, is available at
https://s3.amazonaws.com/public-inspection.federalregister.gov/2016-13806.pdf.

Agency
Office of Federal Contract Compliance Programs
Date
June 14, 2016
Release Number
16-1219-NAT
Media Contact: Michael Trupo
Phone Number

US Labor Department sues Enterprise Rent-A-Car of Baltimore for racial discrimination against applicants for management trainee

News Release

US Labor Department sues Enterprise Rent-A-Car of Baltimore for racial discrimination against applicants for management trainee

Suit alleges federal contractor’s hiring shows preference for white applicants

BALTIMORE – Enterprise RAC Company of Baltimore, LLC, a subsidiary of one of the world’s largest vehicle rental companies and a federal contractor, is discriminating against African-American applicants pursuing entry-level management trainee positions, the U.S. Department of Labor alleges in a lawsuit filed recently.

A compliance review conducted by the department’s Office of Federal Contract Compliance Programs found that Enterprise engaged in racially discriminatory hiring practices and failed to maintain personnel and employment records, in violation of Executive Order 11246. The review determined that African-American and white applicants were not treated equally, and that African-American applicants were substantially more likely to be rejected at the initial screening stage and after the first interview. In its suit, the department alleges that the discriminatory hiring continues to the present.

“All workers deserve a fair shot at equal employment opportunities and advancement,” said OFCCP Director Patricia A. Shiu. “Our action against Enterprise highlights our commitment to combatting discrimination against qualified workers.”

Enterprise RAC Company of Baltimore, LLC, is a wholly owned subsidiary of Enterprise Holdings Inc., which operates under the Enterprise, National and Alamo rental brands. It is the largest vehicle rental provider in the world measured by revenue, employees and fleet with more than 93,000 employees and 9,000 locations worldwide.

Filed with the department’s Office of Administrative Law Judges, the suit asks the court to:

  • Permanently enjoin Enterprise RAC of Baltimore, its successors, officers, agents, servants, employees, divisions and subsidiaries, from failing and refusing to comply with requirements of Executive Order 11246 and OFCCP regulations.
  • Require Enterprise RAC of Baltimore to provide complete relief to the affected African-American applicants.

The case is being litigated by the Philadelphia Office of the Solicitor.

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

# # #

OFCCP  v. Enterprise RAC Company of Baltimore, LLC

Docket No. 2016-OFC-00006

Agency
Office of Federal Contract Compliance Programs
Date
June 9, 2016
Release Number
16-1145-PHI
Media Contact: Leni Fortson
Media Contact: Joanna Hawkins

Subsidiary of Ashland Inc., leading chemical company, settles charges of hiring discrimination with US Labor Department

News Release

Subsidiary of Ashland Inc., leading chemical company, settles charges of hiring discrimination with US Labor Department

Federal contractor, Aqualon Company, to pay 660 African-American applicants

RICHMOND, Va. – A subsidiary of one of the world’s leading specialty chemical companies has entered into a conciliation agreement with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs to resolve allegations of race-based hiring discrimination.

The Aqualon Company, a subsidiary of global leader Ashland Inc., entered into the agreement after OFCCP determined that – from Oct. 1, 2011, through Sept. 30, 2012 – Aqualon failed to provide equal employment opportunities to 660 African Americans in the Richmond metropolitan area who applied for entry-level transition operator positions at the company’s facility in Hopewell.

OFCCP found that the company’s action violated Executive Order 11246, which prohibits federal contractors from discriminating based on race or color in their employment practices. Ashland has multiple federal contracts worth more than $37 million with the U.S. Department of Navy, the U.S. Department of Army and other federal agencies.

“OFCCP is committed to ensuring that federal contractors and subcontractors conduct hiring, promotions, terminations and compensation fairly, without respect to race, color, religion, sex, sexual orientation, gender identity, national origin, disability or protected veteran status,” said OFCCP Director Patricia Shiu. “We strongly encourage employers to take proactive steps to come into compliance with the law to prevent workplace discrimination.”

In its scheduled compliance evaluation, OFCCP found Aqualon used a discriminatory test as part of its selection process that adversely affected African-American applicants. The test was not job-related and did not meet the requirements of the Uniform Guidelines on Employee Selection Procedures.

Under the terms of the agreement, the company, which has not admitted liability, will pay $175,000 in back pay and interest to the African-American applicants. Aqualon also agreed to hire four of the African-American applicants. Additionally, it has agreed to discontinue use of the test in question for its entry-level positions, and to revise its hiring and recordkeeping practices to comply with Executive Order 11246 and equal employment regulations applicable to federal contractors. The agreement resolves all violations.

Aqualon’s parent company is based in Covington, Kentucky. Ashland is a global leader in production of cellulose ethers and synthetic polymers. It has more than 11,000 employees worldwide that serve customers in more than 100 countries with 36 manufacturing sites in North America and additional locations in Asia, Europe and South America.

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. Collectively, these laws make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discharging or discriminating against applicants or employees because they inquire about, discuss, or disclose their compensation or that of others, subject to certain limitations. For more information, visit http://www.dol.gov/ofccp/.

OFCCP recently launched the Class Member Locator. The purpose of the CML is to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief and/or consideration for job placement. If you are an African American who applied for work as a transition operator at Ashland, Inc.’s Aqualon Company facility in Hopewell, Virginia, between Oct. 1, 2011, and Sept. 30, 2012, but you were not hired, please visit our website at: http://www.dol.gov/ofccp/CML/index.htm, where you can also find information about other recent OFCCP settlements, or call 877-716-9783.

Agency
Office of Federal Contract Compliance Programs
Date
June 7, 2016
Release Number
16-0943-PHI
Media Contact: Joanna Hawkins
Media Contact: Leni Fortson

US Labor Department sues poultry giant Pilgrim’s Pride for hiring discrimination against African American, white, female applicants

News Release

US Labor Department sues poultry giant Pilgrim’s Pride for hiring discrimination against African American, white, female applicants

Action alleges world’s second largest chicken producer violated federal hiring laws

DALLAS – The U.S. Department of Labor’s Office of Federal Contract Compliance Programs has filed a lawsuit alleging that Pilgrim’s Pride Corp. has systematically discriminated against female, African American and white jobseekers at its Mount Pleasant processing facility.

The world’s second largest chicken producer, the company holds more than $75 million in federal contracts with the U.S. Department of Agriculture and other agencies. Executive Order 11246 prohibits federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity or national origin, and requires contractors to ensure equal opportunity in employment.

“The company has won millions in federal contracts, but refuses to comply with anti-discrimination laws that apply to those contractors,” said Office of Federal Contract Compliance Programs Director Patricia A. Shiu. “When contractors accept federal funds, they agree to take steps to make sure taxpayer money is never used to discriminate in hiring or employment – something Pilgrim’s Pride has failed to do.”

Filed with the Office of Administrative Law Judges, the department’s complaint asks the court to require Pilgrim’s Pride to hire affected applicants into semi-skilled and unskilled production jobs and to pay them back pay and interest. The department also seeks an order permanently prohibiting the company from violating the Executive Order, and canceling all its federal contracts and debarring it from entering into future federal contracts unless it comes into compliance with the Executive Order and remedies its prior violations.

In its compliance review, OFCCP found that – from July 2005 to July 2007 – Pilgrim’s Pride discriminated against African American and white applicants for semi-skilled jobs, and against female and white applicants for unskilled jobs at the processing facility.

In addition to its findings regarding hiring discrimination, OFCCP also found that the Mount Pleasant facility failed to do the following:

  • Keep and preserve required personnel and employment records.
  • Properly conduct required analyses of whether its employment practices had an adverse impact on women or minority groups.
  • Show that the lifting requirements established for various positions were job-related and consistent with business necessity.

Headquartered in Greeley, Colorado, and the wholly owned indirect subsidiary of Brazilian meat-processing giant JBS S.A., Pilgrim’s Pride has the capacity to process more than 34 million birds per week for a total of more than 7 billion pounds of live chicken annually. It operates in 12 U.S. states as well as in Mexico and Puerto Rico with approximately 35,000 employees.

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. Collectively, these laws make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran.  In addition, contractors and subcontractors are prohibited from discharging or discriminating against applicants or employees because they inquire about, discuss, or disclose their compensation or that of others, subject to certain limitations. For more information, visit http://www.dol.gov/ofccp/.

# # #

Office of Federal Contract Compliance Programs, United States Department of Labor v. Pilgrim’s Pride Corporation. Case No. 2016-OFC-5

Agency
Office of Federal Contract Compliance Programs
Date
May 25, 2016
Release Number
16-0856-NAT
Media Contact: Juan Rodriguez

Federal food service contractor settles charges of gender-based hiring discrimination for entry-level Michigan, Kentucky, Wisconsin warehouse jobs

News Release

Federal food service contractor settles charges of gender-based hiring discrimination for entry-level Michigan, Kentucky, Wisconsin warehouse jobs

Gordon Food Service Inc. to pay women $1.85M in back wages, benefits

WYOMING, Mich. – For a second time, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs has determined that a Michigan-based, federal food service contractor systematically discriminated against 926 qualified women seeking entry-level warehouse laborer jobs.

In agreements with the department, Gordon Food Service, Inc. of Wyoming will pay a total of $1.85 million to female applicants, hire 37 female applicants and stop using a strength test that OFCCP found to be discriminatory.

An OFCCP investigation of GFS, which has not admitted liability, found that the company systematically eliminated qualified women from the hiring process through various discriminatory means, including the unlawful use of the strength test. The women had applied for laborer positions at four warehouses in Brighton and Grand Rapids, Michigan; Kenosha, Wisconsin; and Shepherdsville, Kentucky. Investigators determined the company’s discriminatory hiring practices resulted in the hiring of only six females while GFS hired nearly 300 males throughout the investigation period.

GFS, which provides products to the U.S. Departments of Defense and Agriculture and to the Federal Prison System, has entered into three conciliation agreements to resolve the discrimination findings. The women affected by the alleged discrimination reside primarily in Illinois, Indiana, Kentucky, Michigan and Wisconsin.

“Too often we find ‘tests’ like the one used in this case that exclude workers from jobs that they can in fact perform,” said Patricia A. Shiu, director of the U.S. Department of Labor’s Office of Federal Contract Compliance Programs. “In this case, women were denied good-paying jobs. We are making sure that these women are compensated and that some are able to get the work they sought when positions become available.”

In 2007, GFS settled charges of sex discrimination in hiring for similar entry-level labor jobs at its Grand Rapids and Brighton warehouses. In that case, the company provided $450,000 in back pay and interest to the affected women.

Since 2010, GFS has won nearly $4.5 million in federal contracts to provide perishable and non-perishable foods. GFS is one of North America’s largest food distribution companies with more than 170 U.S. locations. In addition to its government contracts, the company supplies restaurants, schools, universities and hospitals.

OFCCP enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. Collectively, these laws make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discharging or discriminating against applicants or employees who inquire about, discuss or disclose their compensation or that of others, subject to certain limitations. For more information, visit http://www.dol.gov/ofccp/.

OFCCP recently launched the Class Member Locator. The purpose of the CML is to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief and/or consideration for job placement. If you think you may be a class member who applied to one of the designated facilities of Gordon Food Service, Inc., between January, 2010, and September, 2012, please visit our website at: http://www.dol.gov/ofccp/CML/index.htm, where you can also find information about other recent OFCCP settlements, or call 877-716-9783.

Agency
Office of Federal Contract Compliance Programs
Date
May 11, 2016
Release Number
16-0657-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number
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