On Wednesday, August 23, 2017, the Office of Federal Contract Compliance Programs (OFCCP) filed an appeal with the Administrative Review Board (ARB), officially challenging a recent decision denying the agency access to some of the documents it sought as part of its highly-publicized review of the compensation practices at Google Inc.’s headquarters location.
The recent Administrative Law decision between the Office of Federal Contract Compliance Programs (OFCCP) and Google alleging denial of access sparked an interesting discussion about the “establishment” that was selected for review. Contractors with large campus headquarters, or multiple establishments near each other similar to Google, may want to consider the alternative Affirmative Action Plan (AAP) structures suggested in the decision.
On July 14, 2017, Administrative Law Judge (ALJ) Steven Berlin issued a recommended administrative decision in the publicity-generating case between Google and the Office of Federal Contract Compliance Programs (OFCCP). For those who have been following along, you know OFCCP sued Google in early January for access to additional employee pay data and employee contact information for more than 20,000 employees as part of a routine compliance review of Google’s headquarters.
On February 17, 2017, 800 corporate scheduling announcement letters (CSALs) were mailed to federal contractors throughout the United States. This left many contractors asking, “why us?” There are a few ways a contractor can be selected for a compliance review, including, but not limited to, individual or class complaint investigations and directed reviews initiated by Office of Federal Contract Compliance Program’s (OFCCP) National Office. Directed reviews are based on reports of an alleged violation, pre–award evaluations in response to requests for pre–award clearance from federal contracting officers, and the monitoring of conciliation agreements and consent decrees. Most establishments make the “list” through the OFCCP’s Federal Contractor Selection System (FCSS).
If you are a federal contractor or subcontractor in the following states: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, Ohio, and Wisconsin, you will want to watch your mailbox for a letter from the Office of Federal Contract Compliance Program (OFCCP) to schedule an audit. It appears that OFCCP’s Midwest regional offices are actively scheduling more reviews than any other Regional OFCCP office.
KPMG, one of the world’s largest accounting firms, has agreed to pay $420,000 to resolve allegations of hiring discrimination at its Short Hills, NJ location. The firm entered a conciliation agreement with the Office of Federal Contract Compliance Programs (OFCCP) as a result of an investigation that started in 2011.
It’s too expensive to prove there is no gender pay gap. This is Google’s argument following their refusal to turn over compensation data to the U.S. Department of Labor, highlighted on social media and various publications following a recent hearing before a DOL administrative law judge (ALJ). However, there’s another argument not receiving nearly as much buzz—Google has a constitutional right to raise a lawful defense against a request that, in its opinion, is unreasonable and goes beyond the scope of the DOL’s investigation.
Office of Federal Contract Compliance Programs (OFCCP) has entered into a conciliation agreement with Aramark Uniform Services to settle allegations of hiring discrimination against male applicants and placement discrimination, or steering, against female hires, both for production positions in the contractor’s Evansville, IN facility. Aramark is a provider of uniform services and supplies, and the Evansville, IN location provides both uniform rentals and uniform services.
In May 2017, Office of Federal Contract Compliance Programs (OFCCP) entered into a conciliation agreement with Guntersville, AL protective clothing supplier Kappler, Inc., to settle allegations of steering within its hiring process. The agreement alleges that between December 2012 and December 2014, Kappler, Inc. failed to consider female applicants for Cutter and Floor Worker positions, while placing only female applicants in Sewer positions.
The Office of Federal Contract Compliance Programs (OFCCP) recently entered into a conciliation agreement with The Nebraska Medical Center to settle allegations of hiring discrimination against African American applicants for Psych/Clerk Patient Care Tech and Clerk/Patient Care Technician positions. The conciliation agreement also states the contractor did not complete a thorough analysis of its complete employment process for these positions, and failed to identify which step in the process was creating a barrier to equal employment opportunity. Additionally, OFCCP found that The Nebraska Medical Center did not demonstrate good faith efforts to remove any barriers, or implement an internal audit and reporting system that would monitor personnel activity. Technical violations were also included in the conciliation agreement. OFCCP alleges that the Nebraska Medical Center did not record all applicants for these positions on its applicant log, did not use accurate disposition codes, and failed to preserve personnel and employment records for the required length of time.