Agency Acronym
OFCCP
DOL Search Collections ID
4948

US Labor Department sues B&H Foto & Electronics Corp. for hiring, pay, promotion discrimination; harassment

News Release

US Labor Department sues B&H Foto & Electronics Corp. for hiring, pay, promotion discrimination; harassment

New York retailer allegedly violated federal requirements at Brooklyn warehouse

NEW YORK – A lawsuit filed by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs alleges that B&H Foto & Electronics Corp. has systematically discriminated against Hispanic employees and female, black and Asian jobseekers at its Brooklyn Navy Yard warehouse.

As a federal contractor, B&H is prohibited by Executive Order 11246 from discriminating in employment on the basis of race, color, sex or national origin and is required to take affirmative action to ensure that equal opportunity is provided in all aspects of employment.

“Federal contractors’ workforces should reflect the diversity of the American people, the people who are ultimately footing the bill for the goods and services that contractors provide to the government,” said OFCCP’s Director Patricia A. Shiu. “B&H fell far short of this responsibility and created deplorable working conditions for employees at its Brooklyn warehouse. This agency is prepared to use every tool at its disposal to ensure that no federal contractors engage in discrimination against women and people of color.” 

On its website, the popular photo, video, audio and digital imaging retailer claims to “employ an incredibly diverse group of people.”  During its compliance review, however, OFCCP found that, from January 2011 to January 2013:

  • B&H’s Brooklyn Navy Yard warehouse exclusively hired Hispanic men into its entry-level laborer job group, contributing to the complete exclusion of female employees at the warehouse and the near exclusion of black and Asian employees at the facility.
  • B&H promoted and compensated its Hispanic workers at a significantly lower rate than comparable white workers, leading to lower pay, fewer opportunities to advance and a near-total exclusion of Hispanic workers from higher level clerical, managerial and supervisory positions. Hispanic employees were also subjected to racist remarks, degrading comments and harassment at the worksite. 

In addition to its findings regarding hiring, compensation and promotion discrimination and harassment, OFCCP found that B&H’s Brooklyn Navy Yard warehouse:

  • Failed to keep and preserve required personnel and employment records.
  • Relegated Hispanic warehouse workers to separate, unsanitary and often inoperable restrooms.
  • Failed to provide designated restroom or changing facilities for females.

Filed with the Office of Administrative Law Judges, the complaint asks the court to enjoin B&H permanently from discriminating against female, black and Asian individuals in hiring, and discriminating against Hispanic individuals in promotions and compensation; and to require B&H to ensure and maintain a working environment free of unlawful harassment, intimidation or coercion. OFCCP is also seeking complete relief for the affected class including lost wages, interest, front wages, salary adjustments, promotions and all other lost benefits of employment and a reform of discriminatory policies.

If B&H fails to provide relief as ordered, OFCCP requests that all its government contracts be canceled and that it be debarred from entering into future federal contracts. Headquartered in Manhattan, B&H has supply contracts with the General Services Administration and the Department of Justice’s Federal Bureau of Investigation valued in excess of $46 million.

OFCCP filed its complaint after determining that it was unable to secure a voluntary agreement from B&H to take corrective action. The full complaint can be viewed here.

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 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, or because an applicant or employee has inquired about, discussed, or disclosed compensation. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

# # #

Perez v. B&H Foto & Electronics Corp. Docket number: 2016-OFC-00004

Agency
Office of Federal Contract Compliance Programs
Date
February 25, 2016
Release Number
16-0384-NEW
Media Contact: Ted Fitzgerald

OFCCP News Release: US Labor Department recovers more than $1.8 million for employees and job applicants at G&K Services [11/19/2015]

News Release

US Labor Department recovers more than $1.8 million
for employees and job applicants at G&K Services

Systemic hiring, pay discrimination found at laundry facilities across the country

SAN FRANCISCO — The U.S. Department of Labor has reached a settlement with nine facilities of G&K Services, Inc., to remedy systemic hiring and pay discrimination violations identified in compliance evaluations initiated between 2011 and 2015. G&K Services has several federal contracts, which requires the company to adhere to nondiscrimination and affirmative action provisions under Executive Order 11246.

A compliance review by the department's Office of Federal Contract Compliance Programs found that G&K discriminated against 444 female employees in laborer positions by disproportionately assigning them to lower paying job duties while filling the higher paying job duties predominantly with men, even though female employees were qualified for and able to perform the higher paying jobs.

"When you accept taxpayer dollars, you are held to the highest employment standards," said U.S. Secretary of Labor Thomas E. Perez. "Workers should be judged on their skills and qualifications, not on their gender or any other arbitrary measure. We will not tolerate employment discrimination by companies that do business with the federal government."

OFCCP determined that this practice of steering women into the lower paying "light duty" jobs led to unlawful sex-based pay discrimination at G&K facilities in Denver; Sacramento, California; Graham and Charlotte, North Carolina; Pleasant Hill, Iowa; Justice, Illinois; St. Paul, Minnesota; and Houston and Coppell, Texas. This practice also resulted in a lower hiring rate for 2,327 male applicants who were equally or more qualified for general laborer positions at the Sacramento, Pleasant Hill, Justice, St. Paul and Coppell locations.

OFCCP also found that G&K failed to provide equal opportunity to 456 African American and 111 Caucasian applicants at its Houston and Charlotte locations when hiring for general laborer positions.

"This settlement demonstrates how the U.S. Labor Department can uncover patterns of workplace discrimination by federal contractors that transcend a single location, which may affect a large number of workers," said Patricia Shiu, Director of OFCCP. "G&K has agreed to fully cooperate to remedy past violations and ensure its selection and placement practices at these facilities are in full compliance with the law going forward. Together, we can achieve the common goal of equal employment opportunities and nondiscrimination in pay for all employees and applicants."

Under the terms of the agreement, G&K, while denying liability, has agreed to pay a total of $1,813,555 to members of the affected classes in the conciliation agreement. The contractor has also agreed to extend 78 job opportunities to the male, black and white applicants who were not hired, and 58 opportunities for the female employees to move into higher paying positions.

The agreement also requires G&K to undertake a detailed assessment of its hiring, placement and compensation practices, and its job postings and other documents to ensure they provide equal opportunity and do not discriminate on the basis of sex or race. G&K will be required to conduct regular adverse impact and compensation analyses at the locations where OFCCP found violations, and will report regularly to the agency during the monitoring period on its fulfillment of these obligations.

G&K Services, Inc. provides branded uniform and facility services products including traction control products, towel products, microfiber, wet mops, fender covers, linen items and restroom hygiene products.

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 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. 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 one of the workers eligible for back pay or job opportunities from this settlement, or may know someone who is, please visit the OFCCP Class Member Locator at http://www.dol.gov/ofccp/cml, where you can also find information about other OFCCP settlements.

Agency
Office of Federal Contract Compliance Programs
Date
November 19, 2015
Release Number
15-2242-NAT
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

OFCCP News Release: US Labor Department alleges hiring discrimination by Indiana federal contractor that manufactures portable military meals [12/09/2015]

News Release

US Labor Department alleges hiring discrimination by Indiana
federal contractor that manufactures portable military meals

Complaint seeks back wages, 27 job offers for male victims

EVANSVILLE, Ind. — A federal contractor that manufactures portable meals for the U.S. Department of Defense and other government agencies discriminated systematically against qualified men seeking entry-level production jobs, the U.S. Department of Labor's Office of Federal Contract Compliance Programs alleges in a lawsuit filed today.

An OFCCP investigation of AmeriQual Group, LLC found the Evansville-based company segregated its production line workforce. The company based work assignments on gender stereotypes: putting women in "light duty" jobs and having men do more labor intensive work. Through interviews with company officials and employees, OFCCP investigators learned women were selected for table inspector jobs, where a majority of the hiring occurred, while men were relegated generally to loader and utility positions, where less hiring took place.

"Qualifications for a job are tied to skills and experience, not gender. Stereotypical notions of what jobs are appropriate for women are outdated, and perpetuate discrimination," said OFCCP Director Patricia A. Shiu. "We expect that employers funded by taxpayer dollars to provide meals to our Armed Forces will exemplify the same spirit of equal employment opportunity and diversity that exists in our military."

OFCCP found the company's discriminatory practices violated Executive Order 11246 and affected 237 male applicants. Although there was a significantly larger male applicant pool, AmeriQual disproportionately selected women over men.

The investigation also found that AmeriQual attempted to create after-the-fact justifications for failing to hire male applicants by making notations on "sticky notes" and other documents and then adding them to files. Those notations did not appear on the original documents that the company provided at the beginning of the investigation. AmeriQual also failed to provide specific hiring records during the course of the investigation.

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 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. For more information, please call OFCCP's toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

Perez v. AmeriQual Foods Case No: cv-15-2016OFC00002

Agency
Office of Federal Contract Compliance Programs
Date
December 9, 2015
Release Number
15-2233-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

OFCCP News Release: US Labor Department settles allegations of systemic hiring discrimination at Hospira Inc., in McPherson, Kansas [10/13/2015]

News Release

US Labor Department settles allegations of systemic hiring discrimination
at Hospira Inc., in McPherson, Kansas

Company agrees to pay female applicants $400K in back wages

WASHINGTON — Hospira Inc., a government contractor, discriminated against women in violation of Executive Order 11246 when it denied jobs to 145 female applicants for pharmacy attendant positions at its McPherson, Kansas, facility, the U.S. Department of Labor's Office of Federal Contract Compliance Programs found.

"Discrimination is preventable when employers have nondiscriminatory selection procedures in place and see to it that they are followed," said OFCCP Director Patricia Shiu. "Hospira has worked proactively with our agency to resolve the alleged discrimination and to ensure that all required employment records will be maintained going forward."

In its investigation, OFCCP found that discriminatory selection practices resulted in qualified female applicants being hired at much lower rates than similarly qualified male applicants. OFCCP also found that Hospira violated record-keeping requirements by failing to preserve employment applications and interview forms.

These violations occurred while Hospira received more than $35 million in contracts for developing and manufacturing injection medications for the U.S. government.

In its conciliation agreement with OFCCP, Hospira has committed to hire 11 female class members during the agreement's monitoring period. The company will also pay $400,000 in back wages with interest to the 145 female job applicants who were denied positions. The company did not admit liability.

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 that contractors and subcontractors doing business with the federal government not discriminate in employment on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. 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 under an OFCCP conciliation agreement. If you think you may be a female class member, 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
October 13, 2015
Release Number
15-2014-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

OFCCP News Release: Fastenal Company will offer positions to 171 job applicants at Indianapolis and Atlanta facilities in hiring discrimination settlement [10/08/2015]

News Release

CORRECTED: Fastenal Company will offer positions to 171 job applicants at Indianapolis
and Atlanta facilities in hiring discrimination settlement

Company also agrees to pay African-American and female applicants $1.25M in back wages

INDIANAPOLIS — The U.S. Department of Labor's Office of Federal Contract Compliance Programs has found that Fastenal Company, North America's leading distributor of fastening products and a federal government contractor, discriminated against 171 job applicants who sought general warehouse positions at two of its distribution facilities in Indianapolis and Atlanta.

OFCCP also found that, during its investigation, the company destroyed or failed to provide various employment records from both facilities in an alleged attempt to hinder the investigation.

Under the conciliation agreements with OFCCP, Fastenal has committed to hire 154 African American and 17 female class members and will pay $1,253,611 in back wages and interest to the 7,398 African American and 1,055 female job applicants in the affected class. The company did not admit liability. The violations occurred while Fastenal received more than $35 million in government contracts for its products.

"Fastenal has taken a step in the right direction by working closely with our agency to resolve these issues," said OFCCP Director Patricia Shiu. "Together, we will ensure that the company continues to maintain all required employment records and only uses employment tests that are job related to the position for which they are applying."

Investigators from OFCCP's Indianapolis and Atlanta offices found that the company engaged in screening and testing practices that discriminated against African Americans and women. As part of the settlement, Fastenal has agreed to discontinue use of its written test and to revise its hiring and recordkeeping practices to ensure they fully comply with the laws and regulations that apply to federal contractors.

Based in Winona, Minnesota, Fastenal produces threaded fasteners, such as bolts, nuts, screws, and washers used in manufactured products and building projects. The company also sells a wide range of other industrial and commercial supplies. Fastenal operates approximately 2,700 stores located primarily in North America with additional locations in Asia, Europe, Central and South America, and Africa. The company also has 14 distribution centers in the U.S., Canada and Mexico.

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 an African American or female class member who applied during 2011 or 2012, the period of the investigation, please visit our website at: http://www.dol.gov/ofccp/CML/index.htm, where you can also find information about other recent OFCCP settlements.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws require that contractors and subcontractors doing business with the federal government not discriminate in employment on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. For more information, please call OFCCP's toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

Editor's Note: This release corrects the number of African Americans and women receiving back.

Agency
Office of Federal Contract Compliance Programs
Date
October 8, 2015
Release Number
15-1957-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

OFCCP News Release: The Home Depot agrees to pay $83K to women subjected to gender discrimination at Southern California store [10/01/2015]

News Release

The Home Depot agrees to pay $83K to women subjected
to gender discrimination at Southern California store

LOS ANGELES — For years, women at The Home Depot in Southern California store found themselves funneled into cashier jobs while their male coworkers landed higher-paying sales jobs. As a federal contractor, however, the company is obligated to offer equal opportunities to all job applicants and employees.

After action by the U.S. Department of Labor's Office of Federal Contract Compliance Programs, 46 women who applied for positions and were either not hired or placed into cashier positions instead of sales associate positions at the home improvement retailer's Pomona location will share $83,400 in compensation.

"This settlement demonstrates the U.S. Labor Department's determination to prevent workplace discrimination, especially by federal contractors," said OFCCP Director Patricia Shiu. "If you do business with the federal government, the law requires you to hire and promote people according to skills and experience, not gender."

OFCCP investigators examined personnel records and employment applications, interviewed rejected female job applicants and managers, and found that management at the Pomona store had routinely channeled or placed equally or more qualified females into cashier positions while male hires were put into sales associate positions with higher pay and promotion opportunities.

As part of the settlement, The Home Depot did not admit liability but agreed to hire or promote five women to sales associate positions.

Headquartered in Atlanta, The Home Depot has multiple federal contracts valued in excess of $2 million.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. As amended, these three laws require that contractors and subcontractors doing business with the federal government not discriminate in employment on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. 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 think you may be one of the workers eligible for back pay or job opportunities from this settlement, or may know someone who is, please visit the OFCCP Class Member Locator http://www.dol.gov/ofccp/cml to learn more about your potential eligibility or to contact OFCCP.

Agency
Office of Federal Contract Compliance Programs
Date
October 1, 2015
Release Number
15-1891-SAN
Media Contact: Leo Kay
Phone Number
Media Contact: Jose Carnevali

OFCCP News Release: US Labor Department files second lawsuit alleging hiring discrimination at Pilgrim's Pride chicken plants [10/07/2015]

News Release

US Labor Department files second lawsuit alleging
hiring discrimination at Pilgrim's Pride chicken plants

Complaint seeks back wages and job offers from Pilgrim's Pride Company

ATLANTA — One of the world's largest chicken processors systematically discriminated against qualified African-American applicants seeking entry-level jobs as laborers and operatives at its chicken plant in Marshville, North Carolina, the U.S. Department of Labor's Office of Federal Contract Compliance Programs alleges in a lawsuit filed against Pilgrim's Pride Corporation.

"Discrimination will not be tolerated by employers who profit from government contracts," said OFCCP Director Patricia A. Shiu. "OFCCP will use every action available by law, including canceling Pilgrim's federal contracts if necessary, to ensure workers are treated fairly."

The complaint results from an OFCCP investigation into the company's selection procedures. This is the second lawsuit filed by OFCCP against the company in less than 30 days. The first complaint, filed on Sept. 15, 2015, alleges that Pilgrim's Pride systematically discriminated against qualified African-American, Caucasian, and female applicants for entry-level laborer and operative positions at its chicken plant in Athens, Alabama. Both complaints were filed with the department's Office of Administrative Law Judges and seek complete make-whole relief, including instatement of qualified black applicants at the chicken processing facility, payment of lost wages, interest, front wages, and other fringe benefits, including but not limited to retroactive seniority.

OFCCP reviewed the two facilities for compliance with Executive Order 11246, which prohibits federal contractors from discriminating against job applicants on the basis of race and national origin. The agency found that in 2007 and 2008, the Marshville facility's selection criteria were inconsistently applied, unfairly discriminating against African-American applicants. OFCCP also found that Pilgrim's Pride failed to maintain records and to perform in-depth analyses of its employment processes to determine if impediments to equal employment opportunity existed, as required by Pilgrim's federal contracts and OFCCP regulations. The Athens facility's selection criteria were also applied inconsistently. As a result, some African-American, Caucasian, and female applicants were rejected despite having education and experience levels comparable to male and Hispanic applicants. The Athens plant is no longer in operation.

Based in Greeley, Colorado, Pilgrim's Pride is the largest chicken producer in the U.S. The Brazilian food giant JBS S.A. owns 75 percent of Pilgrim's Pride's outstanding common stock.

From 2007 to 2011, Pilgrim's Pride received more than $36 million in federal contracts as a provider of poultry to agencies such as the departments of Defense and Agriculture.

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 that contractors and subcontractors doing business with the federal government not discriminate in employment on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. For more information, please call OFCCP's toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

Agency
Office of Federal Contract Compliance Programs
Date
October 7, 2015
Release Number
15-1879-ATL
Media Contact: Michael D'Aquino
Media Contact: Lindsay Williams
Phone Number

OFCCP News Release: US Labor Department promotes pay transparency among federal contractors [09/10/2015]

News Release

US Labor Department promotes pay transparency among federal contractors

Prohibits discrimination against workers who discuss pay

WASHINGTON — Ensuring that women earn equal pay for equal work is essential to improving the economic security of our families and the strength of our middle class. In too many workplaces around the country, however, a culture of secrecy keeps women from knowing that they are underpaid, and makes it difficult to enforce equal pay laws. Prohibiting pay secrecy policies and promoting pay transparency helps address the persistent pay gap for women — which remains at 23 cents for every dollar earned by men — and provides employers access to a diverse pool of qualified talent. That is why the U.S. Department of Labor today issued a commonsense rule that finally lifts the veil on pay for employees of federal contractors and subcontractors.

"It is a basic tenet of workplace justice that people be able to exchange information, share concerns and stand up together for their rights. But too many women across the country are in the same situation: they don't know how much they make compared to male counterparts, and they are afraid to ask," said U.S. Secretary of Labor Thomas E. Perez. "When he signed the Lilly Ledbetter Fair Pay Act, President Obama made clear his commitment to equal pay for equal work. Today's final rule is another important step toward that important goal."

The final rule, from the department's Office of Federal Contract Compliance Programs, promotes pay transparency by barring the policies of some federal contractors that have prevented their workers from discussing these issues. Under the rule, federal contractors and subcontractors may not fire or discriminate against employees for discussing, disclosing, or inquiring about their own pay or that of their co-workers. The rule also protects pay discussions by job applicants.

The rule allows job applicants and employees of federal contractors and subcontractors to file a discrimination complaint with OFCCP if they believe that their employer fired or otherwise discriminated against them for discussing, inquiring about, or disclosing their own compensation or that of others.

"Pay secrecy practices will no longer facilitate the pay discrimination that is too often perpetrated against women and people of color in the workplace," said OFCCP Director Patricia Shiu. "Indeed, forward thinking companies that have embraced greater transparency find that it benefits them and their workforce by helping them attract and retain talented workers. And research suggests these approaches have a substantially positive impact on society, workers, the workforce, and the economy as a whole."

The final rule implements Executive Order 13665, signed by President Barack Obama on April 8, 2014. Stemming from the Lilly Ledbetter Fair Pay Act, Executive Order 13665 amended OFCCP's existing legal authority under Executive Order 11246, which also prohibits federal contractors and subcontractors from discriminating based on race, color, religion, sex, sexual orientation, gender identity, and national origin.

The final rule becomes effective 120 days from its publication in the Federal Register. More information is available at http://www.dol.gov/ofccp/PayTransparency/.

Agency
Office of Federal Contract Compliance Programs
Date
September 10, 2015
Release Number
15-1747-NAT
Media Contact: Michael Trupo
Phone Number

OFCCP News Brief: Wisconsin mailing processor will hire 23 job applicants in racial hiring discrimination settlement [08/24/2015]

News Release

Wisconsin mailing processor will hire 23 job applicants in racial hiring discrimination settlement

United Mailing Services agrees to pay $120K in back wages to 251 applicants

MILWAUKEE — The U.S. Department of Labor's Office of Federal Contract Compliance Programs has found that United Mailing Services denied jobs to 251 African Americans who completed job applications for entry-level mail processing jobs at its Brookfield, Wisconsin facility.

United Mailing Services required that an applicant meet several minimal expectations to be qualified. The company rejected African American applicants with criminal records, without proper driver's licenses, without adequate work availability, or with incomplete job applications.

In its investigation, OFCCP determined that United Mailing hired white applicants with criminal records, driver's licenses, limited work availability and incomplete applications similar to African Americans who applied for employment. This discriminatory selection process resulted in qualified African Americans being hired at a much lower rate than similarly qualified white applicants.

The OFCCP investigation also found that the hiring lapses occurred while United Mailing received more than $3.6 million in federal contracts to process mail for the U.S. Department of Veterans Affairs. The company did not admit to liability. Currently, United Mailing does not hold any federal contracts.

Under a conciliation agreement with OFCCP, United Mailing hired three class members and committed to hiring an additional 20 class members during the agreement's monitoring period. It will also pay $120,000 in back wages with interest to the 251 African American job applicants.

"Preventing workplace discrimination requires proactive steps," said OFCCP Director Patricia Shiu. "When contractors accept federal funds, they agree to take those steps to ensure that taxpayer money is never used to discriminate in hiring or employment."

OFCCP investigators determined during a scheduled compliance review that United Mailing's hiring process violated Executive Order 11246. The company also failed to collect and maintain required personnel and employment records and other selection documentation in violation of OFCCP's regulations.

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 contractors and subcontractors that do business with the federal government not discriminate in employment on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. For more information, please call OFCCP's toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

Agency
Office of Federal Contract Compliance Programs
Date
August 24, 2015
Release Number
15-1602-CHI
Media Contact: Scott Allen
Phone Number
Media Contact: Rhonda Burke
Phone Number

OFCCP News Release: Crowley, Louisiana, packaging manufacturer settles charges of hiring discrimination, will pay $235K in lost wages to more than 300 applicants [07/30/2015]

News Release

Crowley, Louisiana, packaging manufacturer settles charges of hiring discrimination, will pay $235K in lost wages to more than 300 applicants

NEW ORLEANS — Hiring choices based on the belief that a person of one race works harder than others are wrong and they are illegal, federal investigators have reminded a Louisiana packaging manufacturer.

In an agreement with the U.S. Department of Labor's Office of Federal Contract Compliance Programs, La Pac Manufacturing Inc. settled allegations of systemic hiring discrimination against more than 300 applicants at its Crowley facility. The company, a federal contractor, has agreed to pay $235,000 in lost wages.

OFCCP investigators found La Pac favored Hispanic applicants and hired them at a higher rate than black or white applicants. In fact, the company rejected 185 black and 120 white applicants for machine operator positions that it offered to Hispanic applicants. OFCCP determined that this violated Executive Order 11246, which prohibits discrimination in hiring by federal contractors.

"OFCCP found that La Pac's hiring officials assumed black or white applicants would not work as hard as Hispanics," said OFCCP Director Patricia A. Shiu. "We cannot limit access to jobs by using demeaning racial and ethnic stereotypes. All qualified individuals must have an equal chance at being hired."

Under the terms of its conciliation agreement with OFCCP, La Pac will pay $235,000 in back wages and interest to the affected individuals, and make 47 job offers to the affected class members as machine operator positions become available. While denying that it had committed any violation, the company has also agreed to undertake extensive self-monitoring measures to ensure that its hiring practices comply with the law fully, including record-keeping requirements.

"We are committed to ensuring that qualified applicants are hired, promoted and compensated fairly, without respect to race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran," said Melissa L. Speer, OFCCP regional director for the Southwest and Rocky Mountain regions. "Contractors must monitor their workforces to ensure no one race or ethnic group is favored."

La Pac manufactures a variety of woven polypropylene fabric and bulk bags used in the food and chemical industries, sandbags and packaging bags. The contractor currently has federal contracts worth more than $7 million with the U.S. Mint and U.S. Army Corps of Engineers.

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 prohibit those doing business with the federal government, both contractors and subcontractors, from discriminating in employment on the basis of race, color, religion, sex, sexual orientation, gender identity, 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 is available at http://www.dol.gov/ofccp/.

Agency
Office of Federal Contract Compliance Programs
Date
July 30, 2015
Release Number
15-1488-DAL
Media Contact: Juan Rodriguez
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