US Department of Labor, Serco Inc. agree to resolve alleged compensation discrimination identified against female IT workers

HERNDON, VA – A federal contractor in Herndon that provides professional, technology and management services has entered into an agreement with the U.S. Department of Labor to resolve allegations that the company paid female information technology professionals less than the company paid their male counterparts.

A routine compliance evaluation by the department’s Office of Federal Contract Compliance Programs found that beginning June 1, 2019, Serco Inc. discriminated against 35 female IT employees by paying them less than male workers in similar positions at the company’s headquarters. Executive Order 11246 prohibits federal contractors from discriminating in employment based on race, color, religion, sex, national origin, sexual orientation and gender identity.

While not admitting liability, Serco signed an Early Resolution Conciliation Agreement with the department on Sept. 30, 2021, in which it agreed to pay $150,000 in back wages and interest to the affected female workers, review its compensation policies and practices, and inform OFCCP of all pay adjustments and modifications.

“Federal contractors are obligated to ensure that their compensation practices and policies are free of all forms of discrimination,” Office of Federal Contract Compliance Programs Acting Regional Director Michele Hodge in Philadelphia. “Our nation’s taxpayers deserve to know that companies entrusted with public funds are providing equal pay for equal work regardless of gender.”

Serco Inc. has more than 9,000 employees in North America and is a division of Serco Group, one of the world’s leading service companies with more than 50,000 employees in 35 countries. It holds numerous contracts with the General Services Administration, U.S. Department of Army, U.S. Air Force, U.S. Navy and the Defense Contract Management Agency.

Learn more about OFCCP. OFCCP launched the Class Member Locator to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief and/or consideration for job placement. If you are an employee at Serco Inc. as of June 1, 2019, and think you may be a class member, find information about this and other recent OFCCP settlements.