Affirmative Action: Construction contractor to pay $70,000 in back wages

During an audit of the company’s affirmative action compliance, the OFCCP alleged that the company’s hiring process had a disparate impact on African-Americans, Hispanics, Asians, and Native Americans applying for jobs as laborers and deckhands. In addition to paying back wages, the company agreed to offer jobs to at least six of them, with retroactive seniority, and to revise its selection process. During the two-year period covered by the OFCCP’s compliance review, the company held federal construction contracts related to flood control and coastal restoration in Louisiana.

Tips: The hiring process continues to be the most common area of potential liability for employers with federal contracts, regardless of whether they hold construction contracts or “supply and service” contracts. Employers can reduce their risk by checking for adverse impact, reviewing their hiring criteria, using standard interview questions, and training their hiring managers. If you hold federal contracts or subcontracts, ask your Vigilant staff representative how we can help with your affirmative action compliance. To understand your obligations, see our Legal Guides, Affirmative Action Requirements for Supply and Service Contractors” (1651) and “Affirmative Action Requirements for Construction Contractors” (3953). Or, learn more Vigilant's affirmative action consulting services including plan preparation and compliance.