MINNEAPOLIS – The U.S. Department of Labor has entered into a conciliation agreement with a federal defense contractor to resolve alleged discrimination against Black applicants who applied for assembler positions between 2018 and 2019 at its Burnsville facility.

In a compliance review, the department’s Office of Federal Contract Compliance Programs preliminarily found that — from Jan. 1, 2018 through June 30, 2019 — Rosemount Aerospace Inc. discriminated against Black applicants for assembler positions at the facility, which manufactures aircraft sensor equipment. Rosemount Aerospace has agreed to pay $712,500 in back wages and interest to the affected applicants. The company will also make employment offers to 26 identified class members.

“Federal contractors know that equal employment opportunity is non-negotiable when they accept taxpayer funds to fulfill their contract,” said Office of Federal Contract Compliance Programs Regional Director Carmen Navarro in Chicago. “Our job is to make sure federal contractors meet their legal and contractual obligations, including providing opportunities for all qualified applicants regardless of race.”

OFCCP found Rosemount Aerospace’s actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity or national origin.

“Working together with Rosemount Aerospace, OFCCP will make certain that the issues identified in this compliance evaluation are resolved and that the company puts procedures in place to safeguard the process for future applicants,” Navarro added.

Rosemount Aerospace, which does business as Collins Aerospace, is a subsidiary of Raytheon Technologies of Arlington, Virginia, and is a leading manufacturer of defense products. Raytheon Technologies operates numerous U.S. manufacturing facilities.

OFCCP launched the Class Member Locator to identify applicants or workers who may be entitled to monetary relief and/or consideration for job placement as a result of OFCCP’s compliance evaluations and complaint investigations. If you think you may be a class member who applied for assembler jobs at Rosemount Aerospace during the investigative period, please use OFCCP’s Class Member Locator to learn more about this and other settlements.

Learn more about OFCCP.

WASHINGTON – The U.S. Department of Labor today announced a final rule, “Pre-enforcement Notice and Conciliation Procedures,” to create a streamlined, efficient, and flexible process that will enable the Office of Federal Contract Compliance to employ its resources strategically to remove barriers to equal employment opportunity.

The final rule strengthens OFCCP’s enforcement by rescinding the evidentiary standards and definitions in an earlier rule, “Nondiscrimination Obligations of Federal Contractors and Subcontractors: Procedures to Resolve Potential Employment Discrimination,” which took effect in December 2020.

The new final rule also gives the agency more flexibility in its pre-enforcement and conciliation procedures, promotes efficiency in resolving cases, and promotes greater consistency with Title VII of the Civil Rights Act of 1964.

“Today’s final rule better aligns our procedures to allow us to use our resources more strategically to remove barriers to equal employment opportunity,” said Acting Director of Office of Federal Contract Compliance Programs Michele Hodge. “The rule also enables us to identify and remedy unlawful discrimination more effectively and gives federal contractors early notice of our concerns and an opportunity to respond.”

The 2020 rule imposed inflexible evidentiary requirements early in OFCCP’s compliance evaluation process and attempted to codify complex definitions for “qualitative” and “quantitative” evidence and other standards. These definitions and standards hindered the agency’s ability to pursue cases with merit and diverted agency and contractor resources away from addressing discrimination.

The final rule retains the Predetermination Notice and the Notice of Violation codified in the 2020 rule and restores the distinct purpose of each notice. These notices allow OFCCP to provide findings related to discrimination during the evaluation’s different stages and provides federal contractors with an opportunity to respond.

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 authorities, 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 the compensation of others subject to certain limitations, and may not retaliate against applicants or employees for engaging in protected activities. These authorities also require that federal contractors ensure equal employment opportunity for employees and applicants for employment. Learn more about OFCCP. Call 800-397-6251 for more information.

WASHINGTON – The U.S. Department of Labor has asked the Office of Administrative Law Judges to compel a federal contractor in the District of Columbia to provide documents and information needed to complete a scheduled compliance evaluation of the company’s equal employment opportunity practices.

The action follows a May 20, 2022, request by the department’s Office of Federal Contract Compliance Programs to Ad Hoc LLC — a digital services and software provider — for required information on the employer’s affirmative action programs and supporting data information in an agency scheduling letter.

Despite repeated requests, the company failed to provide the agency with the requested information. In December 2022, OFCCP issued Ad Hoc a Show Cause Notice that demanded the employer submit the outstanding information and data or explain why the agency should not begin enforcement proceedings. The company has yet to reply to the department’s requests.

“Ad Hoc LLC’s repeated failure to provide us with the documentation we need to complete a required compliance evaluation clearly violated their legal obligations as a federal contractor,” explained Office of Federal Contract Compliance Programs Regional Director Sam Maiden in Philadelphia. “Complying with the law about equal employment opportunity protections — or other regulations — is never a choice, it is a rule that companies that accept federal contracts must follow.”

In its filing with the OALJ, the department also seeks an order to cancel the company’s current government contracts and debar them from obtaining future government contracts, if Ad Hoc fails to comply.

“The filing demonstrates that the U.S. Department of Labor will vigorously enforce the law to ensure equality and compliance with anti-discrimination regulations by federal contractors,” said Deputy Regional Solicitor Samantha Thomas in Philadelphia.

Ad Hoc LLC develops and manages digital software products, and has a contract for design, development and product management of the public-facing portions of HealthCare.gov.

OFCCP enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. Together, these laws prohibit employment discrimination.

GARDENA, CA – The U.S. Department of Labor has reached a settlement agreement with a federal contractor that manufactures aircraft components for several federal agencies and the U.S. military, after the department found systemic pay discrimination affecting female employees and disability discrimination at its Gardena, California, facility.

The agreement with Designed Metal Connections — operating as Permaswage — follows an investigation by the department’s Office of Federal Contract Compliance Programs. In its review, OFCCP found that since at least Jan. 1, 2018, the employer discriminated against 63 female employees by paying them significantly less than comparable male employees in the finishing job category. Executive Order 11246 prohibits federal contractors from discriminating in employment based on race, sex, color, religion, sexual orientation, gender identity or national origin.

In addition, the agency found that Permaswage failed to respond to employees who requested reasonable accommodations based on disability, in violation of federal law.

The agreement requires Permaswage to pay $122,000 in back wages and interest to the affected female workers and review its overall compensation system. It must also review its reasonable accommodation policies and provide enhanced training to its managers to ensure future compliance. The employer will also conduct annual compensation analyses and correct any unjustified pay disparity. 

“Federal contractors must conduct annual pay equity audits and assess compensation systems to make sure compensation policies and practices do not lead to discrimination based on gender,” explained Office of Federal Contract Compliance Programs Regional Director Jane Suhr in San Francisco. “In addition to paying back wages and interest, federal law requires Permaswage to provide reasonable accommodation to employees with disabilities to prevent future discrimination.”

Permaswage manufactures fluid fittings, components and installation tooling for the aerospace and defense industries. The company has multiple contracts with federal agencies and the U.S. military.

Learn more about OFCCP. If you think you may be a member of the affected class during the investigative period, please visit the Class Member Locator. The agency offers the Class Member Locator to identify applicants or workers who may be entitled to monetary relief and/or consideration for job placement as a result of OFCCP’s compliance evaluations and complaint investigations.

OFCCP enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974.

RESTON, VA – The U.S. Department of Labor has reached a settlement agreement with a technology solutions provider to resolve alleged systemic hiring discrimination against Black applicants at the company’s Reston headquarters.

The agreement follows a routine investigation by the department’s Office of Federal Contract Compliance Programs that alleges Intelligent Waves LLC discriminated against 14 Black applicants seeking positions in Arizona and Nevada as test instrumentation technicians. The company’s Reston location was responsible for filling these positions.

Executive Order 11246 prohibits federal contractors from discriminating in employment based on race, sex, color, religion, sexual orientation, gender identity or national origin.

In its settlement, Intelligent Waves has agreed to pay $435,368 in back pay and interest to affected job seekers and provide job offers to eligible class members. In addition, the company will take steps to analyze their selection and hiring practices proactively, conduct an internal analysis to prevent recurrence, and to evaluate its effectiveness.

“Our settlement with Intelligent Waves reflects our commitment to preventing hiring discrimination and holding federal contractors accountable when they fail to ensure equal employment opportunity,” said Office of Federal Contract Compliance Programs Mid-Atlantic Regional Director Sam Maiden, in Philadelphia.

Intelligent Waves LLC provides technology solutions in cybersecurity, data science, enterprise network and systems engineering, software development and platform mission support. It has contracts with the U.S. Air Force, Department of Veterans Affairs, General Services Administration and National Aeronautics and Space Administration.

For more about OFCCP, call 800-397-6251 or visit the OFCCP website.

OFCCP 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 between Nov. 5, 2019, through Aug. 31, 2021, the period of the investigation, please visit the OFCCP website for information about this and other recent OFCCP settlements.

WASHINGTON – The U.S. Department of Labor announced today that it will open its online tool for federal contractors and subcontractors to certify their compliance with annual federal affirmative action program requirements.

On March 31, the department’s Office of Federal Contract Compliance Programs will make the Contractor Portal available for use by covered contractors to certify they have developed and maintained affirmative action programs for each establishment or functional unit. Beginning in 2023, covered federal contractors and subcontractors also must report the coverage period for their affirmative action programs. By doing so, the department will gain greater insight into a contractor’s affirmative action program cycle.

Using the Contractor Portal, existing federal contractors and subcontractors must complete their certification for the second annual cycle by June 29, 2023. Contractors within OFCCP’s jurisdiction that meet certain contract dollar and employee thresholds must develop and maintain affirmative action programs and certify their compliance annually.

“The Office of Federal Contract Compliance Programs urges federal contractors to certify their annual compliance with their affirmative action program requirements in a timely fashion using our Contractor Portal,” said Office of Federal Contract Compliance Programs Director Jenny R. Yang. “This online tool will make the process more efficient and promote greater contractor attention to their responsibility to evaluate employment practices and remove barriers to opportunity.”

Affirmative action requirements ensure that applicants and employees of federal contractors have equal employment opportunity without regard to their race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran.

Learn more about OFCCP’s Contractor Portal.

WASHINGTON – For women working in the U.S., the date of Equal Pay Day isn’t a day of celebration. Rather, the day is a reminder that it takes women 15 months to earn the same amount as men earned in 12 months.

Today is Equal Pay Day in 2023, a reminder of systemic inequality faced by women and especially those of color. In the U.S., women who work full-time, year-round, are paid an average of 83.7 percent as much as men, which amounts to a difference of $10,000 per year. The gaps are even larger for many women of color and women with disabilities.

“Equal Pay Day – the day of the year when women working in the U.S. finally earn the same amount as men did in the year before – is an unfortunate reminder that historic wage inequity continues,” said Acting Secretary of Labor Julie Su. “The Biden-Harris administration has made unprecedented investments through the Bipartisan Infrastructure Law, the CHIPS and Science Act and the Inflation Reduction Act and remains determined to remove barriers that prevent women from obtaining good-paying jobs found in the projects these investments will fund to help close the gender wage gap.”

The U.S. Department of Labor has several agency initiatives underway to combat gender and racial pay disparities in the workforce and ensure equity in the implementation of the Bipartisan Infrastructure Law and the Chips and Science and Inflation Reduction acts. They include the following:

• The launch of the Office of Federal Contract Compliance Programs’ Mega Construction Project Program to foster equal opportunity in the construction trades workforce by removing hiring barriers and promoting diversity as qualified workers are considered for construction jobs. Read an OFCCP fact sheet to help employers take proactive approaches to pay equity.
• The Employment and Training Administration’s March 6, 2023, announcement of a cooperative agreement of nearly $20 million to support TradesFutures, the National Urban League and their community partners in developing a strategy to substantially increase the number of participants from underrepresented populations – including women and underserved communities – in Registered Apprenticeships in the construction industry. The effort will enroll more than 13,000 participants in apprenticeship readiness programs and place at least 7,000 participants in construction industry Registered Apprenticeships.
• Publication by the Women’s Bureau of a brief on the causes of the gender wage gap, including new statistics and analyses of gender and racial wage gaps, and a second brief on salary history bans legislation that prohibit employers from asking about prior salaries as a way to promote equal pay includes historic information on equal pay legislation and policymaking, salary history bans’ benefits and design and other policies for closing the gender wage gap.
• The ongoing Good Jobs Initiative provides tools with practical strategies to increase equal employment opportunities on infrastructure projects, including using Project Labor Agreements as Tools for Equity and establishing Access and Opportunity Committees, stakeholder groups that meet regularly to monitor and support diversity and equity goals on a specific project.

“To build an inclusive economy, we need to enable workers to obtain jobs based on their interests, skills and aptitude rather than gender, race or ethnicity, and promote good-paying jobs that follow fair wage setting practices, like those found in union employment, to help to eliminate the wage gap,” Acting Secretary Su added.

Learn more about Equal Pay and Pay Transparency Protections.

WASHINGTON – The U.S. Department of Labor announced today, on Equal Pay Day, the launch of an initiative to promote equal opportunity by federal contractors in the construction trades on large federally funded projects, helping to bring more underrepresented communities into the workforce as the President’s agenda to Invest in America continues creating millions of good-paying jobs.

Established by the department’s Office of Federal Contract Compliance Programs, the newly launched “Mega Construction Project Program” will focus the agency’s efforts to bring the public and private sectors together on a select group of projects known as “Megaprojects” to provide a diverse pool of qualified workers with access to good jobs in the construction trades. Megaprojects are large federal construction projects valued at $35 million or more – some part of which must be federal funding – and that last more than one year.

For the initial group of designated Megaprojects, OFCCP will partner with the General Services Administration and the Department of Transportation – two Bipartisan Infrastructure Law funding agencies – and provide extensive and no-cost compliance assistance to contractors and subcontractors to strengthen recruitment, hiring, and fair employment practices, with a particular focus on getting more underrepresented communities, including women, into the construction workforce.

For each Megaproject, OFCCP will provide free, continuous, on-the-ground assistance to help project owners with stakeholder outreach and information sharing, providing connections to recruitment sources in the community so that projects can fully use the local workforce to get the needed talent. From the earliest stages of a designated Megaproject, OFCCP will engage a wide range of stakeholders in the community – including worker advocates, community-based organizations, and local recruitment sources – to remove barriers to opportunity and foster strong connections and build trust with the community. In addition, OFCCP will conduct compliance reviews to evaluate contractors’ anti-discrimination and equal opportunity practices.

The Mega Construction Project Program supports the Biden-Harris administration’s commitment to building the middle class from the bottom up and middle out by advancing accessible pathways for all workers to the construction trades. In doing this work, OFCCP supports successful implementation of the administration’s historic investments made in the BIL, CHIPS and Science Act, and Inflation Reduction Act by aiding construction contractors in recruiting, hiring, and retaining all available talent to advance the success of infrastructure projects across the nation. Megaprojects are a key tool that help create entry into good, family-sustaining careers for underrepresented workers, like women, who are more likely to be concentrated in low-wage work. By providing women with access to good-paying construction jobs and helping to create equitable workplaces where they can advance, the Mega Construction Project Program will help close gender and racial wage gaps. 

Today’s announcement follows actions announced on Feb. 28, 2023, by the Department of Commerce to help expand opportunities for women in the semiconductor manufacturing and construction workforces by better meeting families’ child care needs. To meet increased demand for chip manufacturing and construction labor, the Commerce Department announced that companies seeking more than $150 million in direct funding from the CHIPS Incentives Program, authorized by the CHIPS and Science Act, must submit a plan to provide access to childcare that reflects the childcare needs of their workers in communities where they plan to build. The Department of Labor’s Good Jobs Initiative and Women’s Bureau supported the Commerce Department to make this requirement actionable for grantees. 

OFCCP looks forward to designating more Megaprojects in the future, potentially including projects funded by the Department of Commerce through the CHIPS and Science Act, and Bipartisan Infrastructure Law projects funded by the Department of Energy and the Environmental Protection Agency. The robust participation in this program by a range of federal agencies demonstrates the whole-of-government approach that the Biden-Harris administration is taking to combat discrimination and advance equal opportunity for all communities.  

“The newly launched Mega Construction Project Program will focus on some of the nation’s most important infrastructure projects to provide equal opportunity to all workers by removing barriers that have historically prevented our construction trades from tapping the full talent that exists in communities that have been underrepresented,” explained Office of Federal Contract Compliance Programs Director Jenny R. Yang. “With the once-in-a-generation investments in the Bipartisan Infrastructure Law, we established this program to use this momentum to create equal opportunities for all of America’s workers to prosper.”

“Right now, America is taking on some of the most ambitious infrastructure projects in living memory, and we cannot succeed if we leave any talent on the table,” said Secretary of Transportation Pete Buttigieg. “The infrastructure we’re building today will strengthen our economy, keep our citizens safe, and create a generation of good jobs that can lift millions to new levels of prosperity and financial security.”

“Thanks to President Biden’s CHIPS Act, Bipartisan Infrastructure Law and Inflation Reduction Act, we are making a once-in-a generation investment in American infrastructure and manufacturing, creating hundreds of thousands of jobs in construction and the trades,” said Secretary of Commerce Gina Raimondo. “These good-paying jobs with family-sustaining benefits are key to building and retaining a diverse workforce in the construction industry, especially as we look to encourage more women to join the trades. We need to build a workforce that looks like America and this initiative will ensure that more Americans have access to quality construction jobs.”

“As the Department of Energy and the federal government work to fight climate change, we need to set an example creating equitable pathways into good-paying jobs, whether in the energy sector or in the construction projects that support it,” said Secretary of Energy Jennifer M. Granholm. “The Department of Energy is proud to partner with the Department of Labor’s Mega Construction Project Program to ensure there are opportunities for everyone to work on important projects across the country as we build out our clean energy infrastructure.”

“Thanks to President Biden’s historic investments in America, we are breaking ground on construction projects across the country to clean up pollution, safeguard natural resources, and protect public health,” said Environmental Protection Agency Administrator Michael S. Regan. “EPA is proud to partner with the Department of Labor on its Mega Construction Projects Program because we know that this historic investment to protect the environment and advance environmental justice will create good-paying jobs that support families across the country. This new partnership will support federal contractors in implementing best practices for high-quality job creation and expanding economic opportunity."

“Ensuring federal construction projects benefit from the skills of a diverse and well-trained workforce is good for taxpayers and communities. We’re thrilled to be partnering with the Department of Labor to promote equal opportunity in the construction trades, close wage gaps for underserved groups, and advance the Biden-Harris administration’s commitment to equitable economic growth,” said General Services Administration Administrator Robin Carnahan.

WASHINGTON – The U.S. Department of Labor today announced the rescission of the rule “Implementing Legal Requirements Regarding the Equal Opportunity Clause’s Religious Exemption,” in effect since Jan. 8, 2021. The rescission ensures a return to the department’s prior policy and practice in place during the presidencies of George W. Bush and Barack Obama – of interpreting and applying the religious exemption in Executive Order 11246 consistent with Title VII principles and case law.

The rescission of the rule will be published in the Federal Register on March 1.

Enforced by the department’s Office of Federal Contract Compliance Programs, EO 11246 prohibits federal contractors and subcontractors from discriminating in employment decisions on the basis of race, color, religion, sex, sexual orientation, gender identity or national origin. The order contains a religious exemption for religious corporations, associations, educational institutions, and societies with respect to the employment of individuals of a particular religion. The rescission preserves the order’s religious exemption, which remains available to qualifying contractors.

“The U.S. Department of Labor remains committed to protecting workers from discrimination and safeguarding principles of religious freedom. This rescission restores the department’s prior approach of aligning Executive Order 11246’s religious exemption with Title VII case law as applied to the facts and circumstances of each contractor when it invokes the exemption,” said Office of Federal Contract Compliance Programs Director Jenny R. Yang.

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 laws, as amended, prohibit  federal contractors and subcontractors from discrimination in employment because of disability or status as a protected veteran.

Learn more about OFCCP.

RIVERSIDE, CA – The U.S. Department of Labor has reached a settlement agreement with ElDorado National to resolve allegations of systemic hiring discrimination affecting white and Asian applicants at its bus manufacturing facility in Riverside, California.

The agreement follows an investigation by the department’s Office of Federal Contract Compliance Programs that found that – from Jan. 1, 2018, to Dec 31, 2019 – the employer discriminated against 97 white and 59 Asian applicants seeking employment in various administrative positions. Executive Order 11246 prohibits federal contractors from discriminating in employment based on race, sex, color, religion, sexual orientation, gender identity or national origin.

ElDorado National will be required to pay $44,000 in back wages and interest to affected job seekers, and provide job offers to eligible class members. The settlement also requires ElDorado National to review its overall hiring process, perform annual audits of hiring procedures and provide enhanced training to its managers to ensure that future hiring discrepancies are nondiscriminatory.

“Federal contractors and subcontractors must ensure their employment policies and practices provide equal employment opportunity to all jobseekers regardless of race,” explained Office of Federal Contract Compliance Programs Regional Director Jane Suhr in San Francisco. “In addition to paying back wages and interest to all affected applicants, the company will take corrective actions to prevent discrimination in its hiring practices moving forward.”

ElDorado National – also operating as ENC –contracts with federal agencies, including the U.S. General Services Administration. The company is a subsidiary of REV Group, a manufacturer of ambulances, buses, firefighting, recreational and other specialty vehicles.

Learn more about OFCCP. If you think you may be a member of the affected class during the investigative period, please visit the Class Member Locator. The agency offers the Class Member Locator to identify applicants or workers who may be entitled to monetary relief and/or consideration for job placement as a result of OFCCP’s compliance evaluations and complaint investigations.

OFCCP enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974.