The Office of Federal Contract Compliance Programs (OFCCP) has released a scheduling list that includes the establishments that will be scheduled for focused reviews to evaluate their compliance with the Vietnam Era Veterans’ Readjustment Act (VEVRAA). This list contains 500 establishments and is a supplement to the scheduling list first released on March 25, 2019 that included 3,500 establishments to be scheduled for compliance reviews, Section 503 focused reviews, compliance checks, Functional AAP reviews, or Corporate Management Compliance Evaluations.
Earlier this week, the Office of Federal Contract Compliance Programs (OFCCP) issued an opinion letter that serves as Director Leen’s first attempt at directly addressing the use of Pay Analysis Groupings (PAGs) in audits. This is the agency’s second opinion letter since a November 2018 directive that committed to providing guidance to federal contractors through these opinion letters.
Specifically, this letter reviews the question of whether contractors can work directly with the agency to establish a PAG structure that would be deemed acceptable prior to an OFCCP audit. Director Leen writes that contractors can submit their PAG structure to the agency for review and feedback, to be considered in future audits. However, he also writes that the agency cannot “conclusively agree” that it will use any predetermined PAGs in future compliance reviews as the factors affecting that workforce and its compensation might have changed since review of the PAGs. OFCCP analyzes compensation data based on the systems and structures that were in place during the period under review, so that information would take precedence over any previously reviewed or “approved” PAGs.
In June 2018, OFCCP entered into a conciliation agreement with Roche Diagnostics Corporation to settle allegations that the company failed to provide equal employment opportunity for African-American applicants based on race at the Indianapolis, IN facility. The agency alleges this discrimination occurred between March 2011 and March 2013, specifically for Material Handling and Production Technician positions. The conciliation agreement details that the agency’s analysis found adverse impact in hiring against a total of 626 African-American applicants, with a shortfall of five African-American hires for Material Handling positions and three African-American hires for Production Technician positions.
In May 2018, OFCCP entered into a conciliation agreement with Five Star Quality Care (dba Meadowmere and Mitchell Manor) to settle allegations that the contractor failed to hire African-American applicants for Dietary Aides at their West Allis, WI facility. The agency analyzed Meadowmere/Mitchell Manor’s applicant and hiring data during the period of October 2011 through October 2013 and found the contractor’s selection process was ‘subjective and non-uniform’ which resulted in the disproportionate non-selection of African-American Dietary Aide applicants.
US Foods, Inc. has entered into a conciliation agreement with the Office of Federal Contract Compliance Programs (OFCCP) to settle allegations of hiring discrimination at the foodservice distributors’ Wixom, Michigan facility. According to the conciliation agreement, OFCCP alleges that from January 2011 through December 2012 US Foods, Inc. discriminated against a total of sixty female applicants for Night Order Selector positions in their warehouse. US Foods, Inc. has agreed to distribute $164,253.69 in back pay and interest to the sixty eligible class members. Additionally, the contractor has agreed to consider qualified eligible class members who apply for Night Order Selector positions until seven have been hired, or the list has been exhausted, whichever occurs first.
Office of Federal Contract Compliance Programs (OFCCP) has entered into a conciliation agreement with LandCare USA, LLC, formerly known as TruGreen LandCare to settle allegations of hiring discrimination at its Austin, TX location. OFCCP alleges that the company discriminated against female applicants for positions in its laborer job group from January 2011 through at least July 2014, and against black and white applicants for positions in the same job group from January 2012 through at least December 2013.
The Office of Federal Contract Compliance Programs (OFCCP) has entered a conciliation agreement with Laboratory Corporation of America (LabCorp) to settle allegations of hiring and compensation discrimination within their Lab Assistant positions located at their Raritan, NJ facility. OFCCP alleges the clinical laboratory operator discriminated against Female applicants during the period of January 1, 2012, through December 31, 2012, and that they discriminated in their compensation practices against Asians in the same job title since at least January 1, 2012. LabCorp disagrees with OFCCP’s findings in both areas but has agreed to the terms of the conciliation agreement to resolve the dispute.
The Office of Federal Contract Compliance Programs (OFCCP) continues to demonstrate its focus on steering and compensation discrimination by entering into a conciliation agreement with Vulcan Information Packaging (Vulcan) facility located in Vincent, AL. OFCCP alleges, Vulcan, owned by Ebsco Industries, Inc, discriminated against women in their Operatives Job Group 7 by hiring them into lower paying positions compared to men in the job group. Additionally, the agency alleges women in the job group, who had at least five or more years’ tenure, were paid significantly less than similarly-situated men.
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.