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Oct 20, 2022

Federal contractors settle significant OFCCP discrimination claims

Affirmative ActionHarassment & Discrimination 

Just in time before the close of the federal fiscal year on September 30, 2022, the Office of Federal Contract Compliance Programs (OFCCP) obtained a number of significant financial settlements with federal contractors. The OFCCP had selected these companies for routine audits of their affirmative action plans (AAPs) and found what it believed to be evidence of discrimination on the basis of race/ethnicity or gender. Without admitting liability, the companies below all signed conciliation agreements to resolve the agency’s allegations.

Loomis Armored US LLC, an armored car services company, agreed to pay $375,000 to resolve allegations of hiring discrimination at its facility in Houston, Texas. The OFCCP alleged that the company discriminated against 355 Black applicants (male and female), and 181 non-Black female applicants. The company also agreed to extend job offers to 24 of the affected applicants as opportunities become available (press release 10/4/22 and conciliation agreement signed 9/29/22).

Marriott Hotel Services, Inc.’s Gaylord Opryland Resort & Convention Center in Nashville, Tennessee, agreed to pay $630,722 in back wages and interest to resolve allegations that it discriminated against 250 Black, Asian, and female applicants for housekeeping positions. The company also agreed to offer jobs to 49 of the affected applicants as positions come open (press release 9/27/22 and conciliation agreement signed 9/20/22).

Midwest Canvas, a manufacturer of pool covers, tarps, and related products, agreed to pay $230,204.80 to resolve allegations of hiring discrimination against Black, Asian, and white applicants who applied for laborer positions at its manufacturing facility in Chicago, Illinois (press release 9/21/22 and conciliation agreement signed 9/15/22).

Sabre Corporation, a software and technology company that serves the global travel industry, agreed to pay $300,000 to resolve allegations of pay discrimination at its Southlake, Texas, facility. The OFCCP alleged that it discriminated against 18 Hispanic employees in the IT Analysis job family and 67 female employees in the Project Management job family (conciliation agreement signed 9/30/22).

Stanley Black & Decker agreed to pay $150,000 to resolve allegations that it underpaid 53 female employees compared to similarly situated male employees in one AAP job group at its manufacturing plant in Farmers Branch, Texas. The jobs were Calibrator, Operator CNC, Operator Machine, and Team Leader (conciliation agreement signed 9/30/22).

Sysco Central Texas agreed to pay $154,000 in back wages to resolve allegations of sex and race discrimination against 180 female applicants and 190 Black male applicants for outbound selector jobs at its New Braunfels, Texas, warehouse distribution center. The company also agreed to extend job offers to 8 female applicants and 7 Black applicants as positions become available (press release 10/13/22 and conciliation agreement signed 9/20/22).

Sysco North Texas agreed to pay $121,000 in back wages to resolve allegations of sex and race discrimination against 135 female applicants and 663 Black male applicants for outbound selector jobs at its Lewisville, Texas, warehouse distribution center. The company also agreed to extend job offers to 6 female applicants and 5 Black applicants as positions become available (press release 10/13/22 and conciliation agreement signed 9/30/22).

UniFirst, a corporate apparel manufacturer, agreed to pay $104,568 in back pay and interest to 37 former and current female employees at the company’s New Kensington, Pennsylvania, production facility to resolve alleged pay discrimination claims (press release 10/5/22 and conciliation agreement signed 9/30/22).

Tips: Once again, compensation and high-volume hiring are the areas where the OFCCP is most likely to see disparities that it believes constitute discrimination. As a federal contractor, you need to be prepared to defend your decisions. This requires a combination of training those who participate in the hiring process or make compensation decisions, properly documenting corporate decisions, carefully reviewing your annual AAP, and taking steps to correct any disparities that raise concerns. Questions or concerns? Talk with your Vigilant Law Group employment attorney. Need help with AAP compliance? Vigilant prepares written AAPs for a reasonable annual fee.

This website presents general information in nontechnical language. This information is not legal advice. Before applying this information to a specific management decision, consult legal counsel.

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