Following an affirmative action audit by the Office of Federal Contract Compliance Programs (OFCCP), KPMG LLP agreed to pay $420,000 in back pay, interest, and benefits to 60 Asian applicants it rejected for associate auditor jobs in New Jersey. The company also agreed to offer positions to 6 of the disappointed applicants as positions become available. The OFCCP alleged that the company’s hiring process had a disparate impact against Asians, which the company was unable to adequately explain. As part of the settlement, KPMG agreed to review and revise (as needed) each stage in its selection process and to monitor for potential adverse impact going forward.
Tips: This settlement illustrates the OFCCP’s relatively recent approach of analyzing adverse impact by specific racial/ethnic group, rather than simply lumping all minorities together and comparing to whites. This only works in job groups that are large enough to have significant numbers of applicants from different racial/ethnic groups, so it’s a good reminder to focus your compliance efforts on your largest job groups (typically those containing your entry-level positions). For a flat annual fee, Vigilant prepares written affirmative action plans (AAPs) for employers with federal contracts. If you have any questions about the adverse impact reports in your AAP, contact your Vigilant affirmative action representative.