News Release

Iowa munitions manufacturer, US Department of Labor reach settlement on back wages, reasonable accommodation for disabilities

MIDDLETOWN, Iowa – A munitions manufacturer for the U.S. Army in Iowa has agreed to pay two former security officers a total of $50,000 in back pay and other damages after the U.S. Department of Labor’s Office of Federal Contract Compliance Programs found American Ordnance LLC failed to accommodate them as required by the Section 503 of the Rehabilitation Act of 1973 and the Americans with Disability Act of 1990.

“Federal contractors must make decisions based on employees’ abilities, not their disabilities,” said Tom Dowd, the OFCCP’s acting director. “Employees with disabilities should feel comfortable requesting an accommodation, and federal contractors must respond to them in a timely manner. By voluntarily entering into this settlement agreement and making reasonable accommodations, American Ordnance is ensuring employees with disabilities can remain on the job and be productive.”

In the conciliation agreement, American Ordnance consents to resolve the discrimination findings and revise its procedures for handling reasonable accommodations. In addition to back wages and damages, the company will also notify all employees of how to request reasonable accommodations. It also agreed to audit and evaluate its procedures and to train supervisors about the ADA. The company did not admit liability.

OFCCP’s Chicago District Office conducted the investigation after a complaint alleged the company failed to accommodate an employee in violation of Section 503 of the Rehabilitation Act and the ADA. The individual was terminated and the company failed to reinstate him during his recall period. Following the OFCCP audit, the company offered reinstatement to the former employee, who declined.

During the investigation, OFCCP determined a second employee, who had voluntarily left the company, was also discriminated against for his disabilities during his employment.

The complaint was dual filed under Section 503 of the Rehabilitation Act of 1973, enforced by the department for federal contractors, and the ADA, which is enforced by the Equal Employment Opportunity Commission. This enabled OFCCP to obtain appropriate relief for the two former employees.

Since 2014, American Ordnance has received more than $13 million in federal contracts from the U.S. Department of the Army. The company is owned by Day and Zimmerman of Philadelphia, Pennsylvania.

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

OFCCP News Release: 
03/27/2017
Contact Name: 

Scott Allen

Phone Number: 
Contact Name: 

Rhonda Burke

Phone Number: 
Release Number: 
17-0339-KAN