The Office of Federal Contract Compliance Programs (OFCCP) has announced numerous financial settlements with federal contractors in recent months. Most settled allegations of hiring discrimination on the basis of race/ethnicity or gender, which came to light during the agency’s routine reviews of the companies’ affirmative action plans (AAPs). A few settlements were made after the OFCCP investigated individual complaints from workers. Here are the recent settlements:
ABM Janitorial Services agreed to pay $45,000 to settle allegations that it underpaid 98 female Cleaners compared to their male counterparts at its facility in Somerville, Massachusetts, by “failing to implement pay increases on time, designating male Cleaners in the union as ‘Leads,’ paying male Cleaners more wages for similar work, and discouraging female Cleaners from raising compensation issues with their union representative(s)” (conciliation agreement signed 09/22/2023).
Astor & Sanders Corporation agreed to pay $4,657 to settle an employee’s disability discrimination complaint at its facility in McLean, Virginia. The OFCCP determined that the company failed to engage in an interactive process when the employee requested a reasonable accommodation for a disability (conciliation agreement signed 06/01/2023).
Illinois Tool Works, Inc. agreed to pay $105,181 to settle an employee’s complaint that he experienced discrimination and harassment on the basis of being a protected veteran and having a disability at the company’s facility in Zeeland, Michigan. The company also agreed to provide a positive letter of reference and four months of outplacement services, to train all of its employees on nondiscrimination and nonharassment, and to train appropriate staff on complaint investigation procedures (conciliation agreement signed 06/21/2023).
LabCorp Central Laboratory Services, LP agreed to pay $525,000 to settle allegations that it discriminated against Black and Asian applicants at its facility in Indianapolis, Indiana. The OFCCP claimed that the company discriminated against 148 Black applicants for Kit Production Assistant I positions, 57 Black applicants for Sample Handling Assistant I positions, and 13 Asian applicants for Medical Technician I positions (press release 09/26/2023 and conciliation agreement signed 09/25/2023).
Navient Corp. agreed to pay $700,000 to resolve allegations that it discriminated against Black and white applicants on the basis of race. The OFCCP alleged that the company discriminated against 427 Black applicants for Customer Service positions in Fishers, Indiana, and Wilkes-Barre, Pennsylvania, and discriminated against 1,858 Black and white applicants for Clerical positions in Austin, Texas (press release 09/11/2023 and conciliation agreement signed 09/08/2023).
National Opinion Research Center agreed to pay $95,000 to settle allegations that it discriminated against 107 Asian applicants for positions as Coronavirus Contact Tracers, primarily in Maryland and Delaware (press release 10/02/2023 and conciliation agreement signed 09/29/2023).
Nielsen Company US LLC, agreed to pay $570,000 to resolve allegations of race discrimination in hiring and to offer jobs to 56 of the rejected applicants. The OFCCP alleged that the company discriminated against Asian, Black, multi-racial, and white applicants for Research Interviewer and Bilingual Research Interviewer positions in Dallas, Texas, and discriminated against Black and white applicants for those positions in San Antonio, Texas (press release 09/12/2023 and conciliation agreement signed 08/31/2023).
Omni Corporation agreed to pay $64,000 to resolve allegations that it discriminated against 32 female applicants at its facility in Glynco, Georgia. The OFCCP alleged that the company disproportionately placed female applicants into lower paying Desk Clerk and Housekeeping positions and placed male applicants into higher-paying General Maintenance Worker positions (conciliation agreement signed 08/28/2023).
Rosemount Aerospace, Inc. agreed to pay $712,500 to settle allegations that it discriminated against 187 Black applicants for Assembler positions at its facility in Burnsville, Minnesota, which manufactures aircraft sensor equipment. The company will also make employment offers to 26 of the applicants (press release 08/09/2023 and conciliation agreement signed 08/08/2023).
Salesforce, Inc. settled an employee’s individual complaint that the company discriminated against him on the basis of his protected veteran status by placing him on a performance improvement plan and then terminating him. The employee worked at the company’s facility in San Francisco, California. The company agreed to pay the employee $120,462 (26 weeks’ salary) and to pay his health care premiums under COBRA for an estimated total cost of $12,119 (conciliation agreement signed 08/18/2023).
SierTek, Ltd agreed to pay $13,455 to resolve a protected veteran’s complaint that he was terminated when he requested a reasonable accommodation for a disability at the company’s facility in Beavercreek, Ohio. The company will also train appropriate staff on how to handle requests for reasonable accommodation (conciliation agreement signed 06/01/2023).
Tips: Federal contractors should pay particular attention to hiring rates in entry-level jobs, comparing the rates for each race/ethnicity and by gender. If you have a high volume of activity, Vigilant recommends doing a quarterly or mid-year review to detect potential disparities, so you can investigate and make adjustments to your hiring process, if appropriate, before the close of your annual recordkeeping year. If you use Vigilant to prepare your AAP, your Vigilant affirmative action representative will be happy to perform this analysis for you.
Also, ensure that your HR team knows how to handle situations when an employee raises a medical reason for needing an accommodation such as an adjustment in work duties or schedule. This could qualify as a request for a reasonable accommodation under Section 503 of the Rehabilitation Act (which applies to employers with federal contracts worth $15,000 or more) and the Americans with Disabilities Act (ADA) (which applies to employers with 15 or more employees). For guidance, see our Legal Guide, ADA: Reasonable Accommodation Quick Reference, and contact your Vigilant Law Group employment attorney with any questions.
