US Labor Department will extend Equal Pay Report comment period through Jan. 5, 2015

WASHINGTON — The U.S. Department of Labor has announced a 60-day extension of the comment period for its proposed rule requiring federal contractors and subcontractors to submit an annual Equal Pay Report on employee compensation to the Office of Federal Contract Compliance Programs. Under the terms of the proposal, this requirement would apply to companies that file EEO-1 reports, have more than 100 employees, and hold federal contracts or subcontracts worth $50,000 or more for at least 30 days. Through the Equal Pay Report, OFCCP would be able to collect summary employee pay and demographic data using existing government reporting frameworks.

President Obama signed a presidential memorandum on April 8 instructing the secretary of labor to propose a rule to collect summary compensation data from federal contractors and subcontractors. The department published a notice of proposed rulemaking in the Federal Register on Aug. 8, with a deadline to submit comments by Nov. 6. The comment period will be extended through Monday, Jan. 5, 2015. To read and comment on the proposed rule, please visit http://www.dol.gov/ofccp/EPR.

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

WASHINGTON — A new rule prohibiting discrimination on the bases of sexual orientation and gender identity in the federal contracting workforce is being announced today by the U.S. Department of Labor. The rule implements Executive Order 13672, which was signed by President Obama on July 21.

"Americans believe in fairness and opportunity. No one should live in fear of being fired or passed over or discriminated against at work simply because of who they are or who they love," said U.S. Secretary of Labor Thomas E. Perez. "Laws prohibiting workplace discrimination on the bases of sexual orientation and gender identity are long overdue, and we're taking a big step forward today to fix that."

EO 13672 tasked the department with updating the rules implementing EO 11246 to add gender identity and sexual orientation to the classes it protects. While 18 states, the District of Columbia and many businesses, large and small, already offer workplace protections to lesbian, gay, bisexual and transgender employees, July's executive order was the first federal action to ensure LGBT workplace equality in the private sector.

 

"We are building on the work of presidents and members of Congress from both parties who have expanded opportunities for America's workers," said Patricia A. Shiu, director of the department's Office of Federal Contract Compliance Programs, which will enforce the new requirements. "This rule will extend protections to millions of workers who are employed by or seek jobs with federal contractors and subcontractors, ensuring that sexual orientation and gender identity are never used as justification for workplace discrimination by those that profit from taxpayer dollars."

The final rule will become effective 120 days after its publication in the Federal Register and will apply to federal contracts entered into or modified on or after that date. More information is available at http://www.dol.gov/ofccp/LGBT/.

In addition to EO 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. These three laws require contractors and subcontractors that do business with the federal government to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability, status as a protected veteran, and now sexual orientation and gender identity.

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

The rule is available on the Federal Register's website at http://www.ofr.gov/OFRUpload/OFRData/2014-28501_PI.pdf.

Prohibits federal contractors, subcontractors from discriminating against workers who discuss pay

WASHINGTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs today announced a proposed rule that would prohibit federal contractors from maintaining pay secrecy policies. Under the terms of the proposal, federal contractors and subcontractors may not fire or otherwise discriminate against any employee or applicant for discussing, disclosing or inquiring about their compensation or that of another employee or applicant.

"Workers cannot solve a problem unless they are able to identify it. And they cannot identify it if they aren't free to talk about it without fear of reprisal," said OFCCP Director Patricia A. Shiu. "Pay transparency isn't just good for workers. It's good for business. Fairness and openness are great qualities for a company's brand."

President Obama signed Executive Order 13665 on April 8, instructing the secretary of labor to propose a rule within 160 days to require pay transparency among federal contractors. The proposed rule, available for public inspection today, would amend the equal opportunity clauses in Executive Order 11246 to afford protections to workers who talk about pay. It would also add definitions for compensation, compensation information, and essential job functions, terms which appear in the revised clauses. The proposal also establishes two types of defenses that contractors can use against allegations of discrimination under EO 13665.

The rule will be published in the Sept. 17 issue of the Federal Register and open for public comment for 90 days. To learn more about the proposed rule, please visit http://www.dol.gov/ofccp/PayTransparencyNPRM.

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

WASHINGTON — Fort Myer Construction Corp. has agreed to settle charges that it violated Executive Order 11246 by failing to provide equal employment opportunities to employees and job applicants at 413 construction sites in the D.C. metropolitan area.

An agreement reached by the federal contractor and the U.S. Department of Labor's Office of Federal Contract Compliance Programs resolves allegations that between Jan. 1 and Dec. 31, 2010, the company discriminated against 27 qualified women and 136 qualified African Americans who applied for jobs as laborers, and unfairly terminated eight African American skilled laborers. It also resolves pay discrimination charges stemming from Fort Myer Construction's practice of assigning equally qualified workers performing the same jobs to projects paying different hourly rates, some with fewer work hours. This resulted in lower wages for 44 African American and 156 Hispanic laborers.

"Strong enforcement and vigilance are critical to opening doors of opportunity for more women and minorities in the construction industry, ensuring that all workers get an equal shot at getting to work on the highest-paying projects," said OFCCP Director Patricia A. Shiu.

OFCCP's investigation of Fort Myer Construction began in January 2011 during the agency's review of companies involved in constructing the U.S. Department of Homeland Security's consolidated headquarters in southeastern D.C. Because that project is valued above $25 million and will last more than a year, this undertaking has been designated by the Labor Department as a Mega Construction Project, which is a priority area for OFCCP. More than 300 workers were interviewed over the course of the compliance evaluation, which focused on Fort Meyer Construction's employment practices in 2010.

"Getting those workers in the door and keeping them is going to take more than improved applicant tracking and better pay policies," said OFCCP Mid-Atlantic Regional Director Michele Hodge. "It's going to take a concerted effort by Fort Myer Construction's leadership to change a culture that devalues too many workers."

During their investigation, OFCCP compliance officers received more than 30 phone calls alerting them to charges of harassment, intimidation, threats and coercion at work. The agency discovered that supervisors at Fort Myer Construction used hostile and derogatory language toward African American and Hispanic employees, as well as a disabled veteran. The supervisors sexually harassed and tried to date female subordinates. African American women were locked out of restroom facilities and had feces left in their work trucks. A company vice president tried to interfere in OFCCP's investigation by discouraging Hispanic employees from talking to agency inspectors conducting an onsite review. Even a female investigator from OFCCP was subjected to inappropriate sexual jokes by a superintendent while at a Fort Myer Construction work site.

Under the terms of the settlement, Fort Myer Construction will pay $900,000 in back wages and interest to 371 class members and make job offers to seven women and 30 African Americans from that class as laborer positions become available. The company has also agreed to undertake extensive training and monitoring measures to ensure that all its employment practices – including hiring, termination and compensation – fully comply with the laws enforced by OFCCP.

D.C.-based Fort Myer Construction builds, repairs and maintains streets, roads, bridges and underground utilities. In 2010, the company received more than $400 million in federal funds for work on 155 construction projects in the D.C. area. Some of its largest contracts that year were with the U.S. Department of Transportation, General Services Administration, Navy Department, National Park Service and Smithsonian Institution.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. These three laws require that those who do business with the federal government, both contractors and subcontractors, follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For more information, visit http://www.dol.gov/ofccp/.

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More than 3,600 African American, Asian American, Hispanic and female applicants to benefit

ROCKVILLE, Md. — Federal contractor Westat Inc. has agreed to settle allegations that it failed to provide equal employment opportunities to 3,651 African American, Asian American, Hispanic and female job applicants at its Rockville headquarters and at field sites in California, Connecticut, Michigan, Mississippi, New York, North Carolina and Tennessee. The conciliation agreement entered into by Westat and the department's Office of Federal Contract Compliance Programs resolves these and numerous other violations, including a failure to maintain and internally audit its own records.

"For more than 50 years, Westat has effectively harnessed the power of data to produce ground-breaking research," said U.S. Secretary of Labor Thomas E. Perez. "That commitment to data integrity should also be applied to its employment practices so that every worker has a fair shot at getting a good job and company leadership understands exactly who is getting hired and why."

During a scheduled compliance review, OFCCP investigators discovered that Westat used a selection process that systematically discriminated against 2,153 African American, 825 Asian American and 35 Hispanic job applicants for research analyst, programmer analyst, telephone data collector and field data collector positions, as well as 638 female applicants for survey process staff positions, between Oct. 1, 2008, and Sept. 30, 2009.

Under the terms of the settlement, Westat will pay a total of $1,500,000 in back wages and interest to 3,651 affected applicants and make 113 job offers to the original class members as positions become available. The company has also agreed to preserve and maintain all employment records, correct record-keeping violations, conduct internal audits, and perform outreach and positive recruitment activities. These efforts are integral to compliance with Executive Order 11246, which prohibits federal contractors from discriminating in employment on the basis of race, color, religion, sex or national origin.

Westat is one of the leading research and statistical survey organizations in the United States. Over the past six years, the company has held more than $2.8 billion in federal contracts with agencies including the U.S. Departments of Agriculture, Commerce, Defense, Education, Energy, Labor, Health and Human Services, Transportation, Treasury and Veterans Affairs.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. These three laws require that those who do business with the federal government, both contractors and subcontractors, follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For more information, visit http://www.dol.gov/ofccp.

Equal Pay Report would help combat pay discrimination

WASHINGTON — The U.S. Department of Labor today announced a proposed rule requiring federal contractors and subcontractors to submit an annual Equal Pay Report on employee compensation to the Office of Federal Contract Compliance Programs. Under the terms of the proposal, this requirement would apply to companies that file EEO-1 reports, have more than 100 employees and hold federal contracts or subcontracts worth $50,000 or more for at least 30 days. Through the Equal Pay Report, OFCCP would be able to collect summary employee pay and demographic data using existing government reporting frameworks.

President Obama signed a presidential memorandum on April 8 instructing the secretary of labor to propose a rule within 120 days to collect summary compensation data from federal contractors and subcontractors. The proposal tabled at the Federal Register today reflects criteria set forth by the president to maximize the efficiency and effectiveness of OFCCP's enforcement programs, minimize the burden placed on federal contractors, and use data to encourage greater voluntary compliance with the law. The proposed Equal Pay Report would also help OFCCP direct its enforcement resources toward contractors whose summary compensation data suggests potential pay violations.

The rule will be published in the Federal Register on Aug. 8, and all comments must be received by Nov. 6, 2014. To read and comment on the proposed rule, please visit http://www.dol.gov/ofccp/EPR.

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

WASHINGTON — Lincoln Electric Co. has agreed to settle allegations of hiring discrimination on the basis of race following an investigation by the U.S. Department of Labor's Office of Federal Contract Compliance Programs. An investigation by OFCCP compliance officers found that the federal contractor violated Executive Order 11246 by using a hiring process that resulted in systemic discrimination against African American applicants. As a result, 5,557 qualified African Americans were rejected for entry-level factory and production positions at the company's Cleveland facility.

Under the terms of the conciliation agreement, Lincoln Electric will pay $1 million in back wages and interest to the 5,557 affected job seekers and will offer entry-level positions to 48 class members as positions become available. Additionally, the company will revise its selection policies and procedures, including making changes to its online application test, to ensure equal employment opportunity for all job applicants going forward.

"Vigilance is paramount in enforcing civil rights," said OFCCP Director Patricia A. Shiu. "When we find violations of the law, corrective measures must be taken and lasting reform implemented so that further discrimination is not perpetuated against more workers. We will remain vigilant as we work with Lincoln Electric to ensure that unfair barriers in the company's hiring process are fixed once and for all."

During a scheduled compliance review, OFCCP determined that Lincoln Electric's paper and online application systems created multiple barriers for African Americans to advance in the selection process. In addition, Lincoln Electric's applications and post-application tests were not properly supported by a validation study that satisfies the requirements of the Uniform Guidelines on Employee Selection Procedures.

Since 2005, Lincoln Electric has held more than $2 million in federal contracts to manufacture welding, cutting and joining products for the federal government. The company was cited for the same violation more than a decade ago when an OFCCP review found that the contractor had discriminated in hiring against minorities and women who applied for entry-level factory jobs. Those charges were settled by a 2003 conciliation agreement that provided $1 million in back pay and interest to the affected workers in that case.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. These three laws require that those who do business with the federal government, both contractors and subcontractors, must follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For more information, visit http://www.dol.gov/ofccp/.

SAN JUAN, Puerto Rico —— La Constructora Santiago II Corp., un contratista de la construcción a nivel federal de San Juan, pagará un total de $40.000 a tres carpinteras que fueron acosadas sexualmente, sufrieron represalias y a quienes se les negó un horario laboral regular y horas extra a diferencia de sus compañeros masculinos. El acuerdo llegó después de una investigación por parte de la Office of Federal Compliance Programs [Oficina de Programas de Cumplimiento del Contratos Federales] del Departamento de Trabajo de los EE. UU.

"Ninguna persona, hombre o mujer, debería tolerar el tratamiento denigrante e inadecuado que estas mujeres enfrentaron para obtener un cheque de pago", dijo Patricia A. Shiu, Directora del OFCCP. "No existe excusa alguna para este tipo de comportamiento, y cuando la discriminación ocurre en lugares de trabajo financiados por los contribuyentes es particularmente atroz".

Los investigadores de la OFCCP revisaron las prácticas de empleo de Constructora Santiago y determinaron que la empresa violaba el Decreto Ejecutivo 11246 discriminando contra las mujeres en materia de compensación laboral, y permitiendo el acoso sexual y las represalias contra las empleadas que protestaban acerca de un entorno de trabajo hostil.

Además, la OFCCP encontró que Constructora Santiago no proveía instalaciones de descanso y baños para las trabajadoras empleadas. A veces, el contratista no proporcionaba instalaciones de baños para mujeres, y las empleadas eran obligadas a hacer sus necesidades fuera de las instalaciones, inclusive ante la presencia de sus colegas masculinos. Cuando existía un baño disponible, éste no estaba separado de los baños de los hombres y no estaba limpio. Los investigadores también hallaron que las trabajadoras eran víctimas de comentarios indeseables, sexualmente implícitos, bromas, burlas y presión para aceptar citas. El acuerdo de conciliación realizado entre Constructora Santiago y la OFCCP resuelve estas y otras numerosas violaciones a la ley en los lugares de trabajo de construcción de la empresa en todo Puerto Rico.

Según los términos del acuerdo de conciliación, la empresa constructora pagará $40.000 a estas tres carpinteras, proveerá baños adecuados y vestuarios para las mismas, y desarrollará políticas contra el acoso. Constructora Santiago además ha acordado asumir medidas de monitoreo interno y entrenamiento extensivas para asegurarse de que todas las prácticas de empleo cumplan por completo con la Orden Ejecutiva 11246, que prohíbe a los contratistas y sub-contratistas discriminar en el empleo con base en la raza, color, religión, sexo u origen nacional.

Constructora Santiago ha construido más de $900 millones de carreteras y puentes en Puerto Rico, al igual que estructuras comerciales e industriales. En enero de 2012, cuando comenzó la revisión de la OFCCP, la empresa tenía un contrato con asistencia federal por un valor de $10 millones con la Puerto Rico Highway and Transportation Authority [Autoridad de Carreteras y Transportación de Puerto Rico].

Aparte de la Orden Ejecutiva 11246, la OFCCP aplica la Sección 503 de la Ley de Rehabilitación de 1973 y la Ley de Asistencia para el Reajuste de los Veteranos de la Era de Vietnam de 1974. Estas tres leyes requieren de aquellos que realizan negocios con el gobierno federal, tanto contratistas como subcontratistas, cumplan con un estándar justo y razonable, que no discrimine en el empleo sobre la base de sexo, raza, color, religión, origen nacional, discapacidad o estado de veterano protegido. Por más información, visite http://www.dol.gov/ofccp/.

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Nearly 1,300 women to share $475K in back wages and interest

OKLAHOMA CITY — Following an investigation by the U.S. Department of Labor's Office of Federal Contract Compliance Programs, Great Plains Coca-Cola Bottling Co. has agreed to pay $475,000 in back wages and interest to settle allegations of sex discrimination affecting 1,293 female job seekers. OFCCP investigators determined that Great Plains Coca-Cola Bottling unfairly rejected these qualified women for merchandiser, driver, driver trainee, production and warehouse positions at the company's bottling and distribution facility in Oklahoma City.

"We cannot build a 21st century workforce by leaving more than half our people behind," said OFCCP Director Patricia A. Shiu. "It is past time for employers to recognize that skills, not sex, should be the determining factor in who gets the job."

Today's settlement stems from an OFCCP review of Great Plain Coca-Cola Bottling's hiring practices over a two-year period beginning in June 2007. Investigators found that female applicants were much less likely to be hired than similarly-situated male applicants and determined that the company had violated Executive Order 11246, which prohibits federal contractors from discriminating on the basis of sex when making employment decisions.

In addition to the financial remedies, the company will make job offers to 116 of the original class members as positions become available. The company has also already made necessary changes to the policies, practices and procedures it uses to recruit, track and hire applicants for these positions.

Great Plains Coca-Cola Bottling has been an operating unit of Atlanta-based Coca-Cola Refreshments since 2012. At the time of OFCCP's review, the Oklahoma City establishment was one of eight bottling facilities that comprised the then privately held Great Plains Coca-Cola Bottling Co.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. These three laws require that those who do business with the federal government, both contractors and subcontractors, must follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For more information, visit http://www.dol.gov/ofccp/.

WASHINGTON — Cargill Meat Solutions, headquartered in Wichita, Kan., has agreed to settle charges of hiring discrimination based on race and sex with the U.S. Department of Labor's Office of Federal Contract Compliance Programs. Under the agreement, Cargill will pay $2,236,218 in back wages and interest to 2,959 applicants who were rejected for production jobs at facilities in Springdale, Ark.; Fort Morgan, Colo.; and Beardstown, Ill., between 2005 and 2009. The affected workers include: female applicants at Springdale and Fort Morgan, Caucasian and Hispanic applicants at Fort Morgan, and African American and Caucasian applicants at Beardstown.

"This settlement will benefit thousands of workers who were subjected to unfair discrimination," said U.S. Secretary of Labor Thomas E. Perez. "And it demonstrates the Department of Labor's commitment to ensuring that everybody has a fair and equal shot at competing for good jobs."

During a series of scheduled reviews, OFCCP compliance officers found evidence that Cargill's hiring processes and selection procedures at facilities in Arkansas, Colorado and Illinois violated Executive Order 11246 by discriminating on the bases of sex, race and/or ethnicity. The reviews also uncovered violations of the Executive Order's record-keeping requirements. The Department of Labor filed a lawsuit regarding violations at the Springdale facility in November 2011 and this settlement resolves the issues in that complaint as well as the two other reviews.

"Discrimination should never be used to justify favoring one group of workers over others," said OFCCP Director Patricia A. Shiu. "I am pleased that Cargill has agreed to put a proactive strategy in place to address this issue through new hiring procedures and in-depth training on combating stereotypes."

In addition to paying more than $2.2 million in back wages and interest to the affected applicants, Cargill has agreed to extend 354 job offers to the affected workers as positions become available. Additionally, the company has agreed to undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law, including record-keeping requirements.

Cargill Meat Solutions, a wholly-owned subsidiary of Minneapolis-based Cargill Inc., distributes beef, pork and turkey products. Since 2005, Cargill has held federal contracts worth more than $1.4 billion.

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

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