The Office of Federal Contract Compliance Programs (OFCCP) has posted a slew of last-minute financial settlements that were signed just before September 30, 2023, the end of the federal government’s 2023 fiscal year. All but one (which was in response to an individual complaint) resulted from the OFCCP conducting routine affirmative action audits of federal contractors, and finding what they believed to be systemic discrimination. The employers in these cases all signed conciliation agreements but denied liability. Here are the latest settlements:
Allied Universal agreed to pay $411,000 to settle allegations that it discriminated against 1,459 Black applicants in favor of Hispanic applicants for Upscale Security Officer positions at its facility in Houston, Texas. The company also agreed to offer jobs to 28 of the candidates as positions come open. Interestingly, the OFCCP determined that the company improperly applied the Internet Applicant Rule when it excluded 2,081 candidates from its analysis of the applicant pool. The company had classified them as not meeting the advertised basic qualifications for the position, but when the OFCCP dug deeper, it found that the candidates had in fact responded that they met the basic qualifications (conciliation agreement signed 09/29/2023 and press release 10/20/2023).
B. Braun Medical, Inc., a medical device manufacturer, will pay $75,984 to resolve allegations that it discriminated against 24 qualified female applicants for Warehouse Associate positions at its facility in Allentown, Pennsylvania. To increase the representation of qualified women in its applicant pools, the company agreed to seek candidates through the U.S. Department of Labor (DOL)’s Employment and Training Administration’s Office of Apprenticeship. The company also agreed to provide $35,000 in childcare and/or transit subsidies for women who join the apprenticeship program to obtain the certificates needed for the position and remain employed for at least 90 days (conciliation agreement signed 09/28/2023 and press release 10/12/2023).
Boeing Distribution Services, Inc. (successor to KLX, Inc.) agreed to pay $402,500 to resolve allegations that KLX discriminated against 113 Black and white applicants who applied for Material Handler I positions and weren’t hired at the company’s facility in Doral, Florida. Boeing Distribution Services will also offer jobs to 11 of the applicants as vacancies occur (conciliation agreement signed 09/29/23 and press release 10/31/2023).
Daikin Applied Americas, Inc., a provider of heating, ventilation, and air conditioning services, agreed to pay $100,000 to resolve allegations that it discriminated against 98 Black applicants who applied for Line Assembler positions and weren’t hired at its Verona, Virginia, facility. The company also agreed to offer jobs to 3 of the Black applicants and to stop using any pre-employment tests for Line Assembler positions (conciliation agreement signed 10/26/2023 [note: date is likely a typo and should be 09/26/2023] and press release 10/12/2023).
Florida International University agreed to pay $575,000 to resolve allegations of pay discrimination against 163 female employees in Mid-Level Executive positions at its location in Miami, Florida. The university also agreed to set aside $125,000 for future salary adjustments and annually review its compensation policies and practices (conciliation agreement signed 09/27/2023 and press release 10/18/2023).
National Office Furniture, Inc., agreed to pay $132,500 to resolve allegations that it discriminated against 201 qualified female applicants for Product Assembly positions who weren’t hired at its facility in Danville, Kentucky. The company will also offer jobs to 15 of the applicants as positions come open (conciliation agreement signed 09/27/2023 and press release 10/31/2023).
Olin Corporation, an ammunition manufacturer, will pay $630,000 to resolve allegations that it discriminated against 286 Black and female applicants for Adjuster II positions at its facility in Oxford, Mississippi. The company will also offer jobs to 46 job of the applicants as vacancies occur (conciliation agreement signed 09/25/2023 and press release 10/23/2023).
Pfizer, Inc., agreed to pay $2 million to resolve allegations that it engaged in pay discrimination against 86 women in various professional positions at its New York City headquarters. The company will also set aside $500,000 for future salary adjustments (conciliation agreement signed 09/28/2023 and press release 10/16/2023).
Pitney Bowes Presort Services, LLC, a mail processing and automation provider, agreed to pay $1,590,000 to resolve allegations of race discrimination against a total of 468 applicants of various races at five facilities: Brown Deer, Wisconsin; Urbandale, Iowa; Levittown, Pennsylvania; Reading, Pennsylvania; and Grand Prairie, Texas. The company also agreed to extend job offers to 106 of the candidates as positions come open (conciliation agreement signed 09/29/2023 and press release 10/12/2023).
Princeton University agreed to pay $116,176.33 to an individual employee to settle a complaint that it engaged in disability discrimination by denying the employee a paid sabbatical (conciliation agreement signed 9/18/2023).
Sysco, Inc., agreed to pay $63,320.87 to settle allegations that it discriminated against 400 female applicants for Order Selector positions in Denver, Colorado (conciliation agreement signed 09/28/2023) and agreed to pay $111,508 to settle allegations that it discriminated against 84 female applicants for Order Selector positions in Portland, Oregon (conciliation agreement signed 09/28/2023).
UniFirst Corporation, which provides uniforms, protective clothing, and custom corporate image apparel programs to businesses, agreed to pay $226,341 to resolve allegations of pay discrimination against 48 female employees in nonsupervisory Production positions at its facility in Whippany, New Jersey. The company will also review base salaries of production department employees for compensation disparities (conciliation agreement signed 09/28/2023 and press release 10/12/2023).
US Foods, Inc., a food service distributor, agreed to pay at least $360.64 per person to 2,551 female applicants for Selector positions (a total of $919,992.64) to resolve allegations that the company discriminated against them in hiring at six facilities: Fort Mill, South Carolina; Lexington, South Carolina; Manassas, Virginia; Port Orange, Florida; Tampa, Florida; and Zebulon, North Carolina. The company also agreed to hire an outside consultant to review its hiring policies and procedures for Selector positions, and to offer jobs to 195 of the candidates as positions come open (conciliation agreement signed 09/29/2023).
US Foods, Inc., also agreed to pay $721,000 to resolve allegations of hiring discrimination against 997 female applicants for Warehouse positions at five facilities: Cincinnati, Ohio; Charlotte, North Carolina; Perth Amboy, New Jersey; Swedesboro, New Jersey; and Albany, New York. The company will also offer jobs to 46 of the applicants as positions become available, develop training for employees involved in recruiting and hiring, and improve its external recruitment processes (conciliation agreement signed 9/29/2023 for Cincinnati, Ohio (Midwest agreement); conciliation agreement signed 09/29/2023 for Perth Amboy, New Jersey; Swedesboro, New Jersey; and Albany, New York (Northeast agreement); conciliation agreement (link not available) for Charlotte, North Carolina (Southeast agreement) and press release 10/13/2023).
Tips: If your company holds federal contracts or subcontracts, make sure you carefully review the selection rates of workers by race and gender, paying particular attention to your job groups with the greatest number of hires per year. This should already be part of your annual review of your written affirmative action plan (AAP), but it may be wise to also do a mid-year or even quarterly check, depending on your hiring volume. If Vigilant prepares your AAP, your Vigilant affirmative action representative will be happy to run extra reports as needed, so you can take steps mid-year to correct any problem areas.
