The Office of Federal Contract Compliance Programs (OFCCP) recently announced that Google LLC has agreed to pay over $3.8 million to resolve allegations of discrimination in pay and hiring, which came to light in a routine affirmative action audit of its facilities in California and Washington. The company, which is a federal contractor, signed a conciliation agreement but didn’t admit liability. The OFCCP’s pay discrimination claims centered on female software engineers, while its hiring discrimination claims focused on female and Asian applicants for software engineering jobs. Most of the money will go toward back pay and interest to these employees and applicants, but $1.25 million will be set aside as a cash reserve to make pay equity adjustments over the next five years.
Tips: This conciliation agreement was signed just a few days before the OFCCP’s new director, Jenny Yang, took office on January 20, 2021. Each director puts their own stamp on the agency, in terms of enforcement priorities and educational initiatives. We’re still waiting to see what direction Ms. Yang takes the OFCCP, but it’s a sure bet that investigating discrimination in hiring and compensation will continue to be a major focus. For a reasonable annual fee, Vigilant prepares written affirmative action programs for companies with federal contracts or subcontracts and assists with affirmative action compliance. Contact your Vigilant Law Group employment attorney for referral to our affirmative action team.