The OFCCP has recently entered into a conciliation agreement with Allied Burton Security Services LLC (now operating as Allied Universal Security Services). The agreement aims to resolve alleged pay discrimination of Black, American Indian, and Female employees. The findings were found to affect over 2200 employees over a period of two years, from November 2012 through November 2014, at a New York City location.
The findings came about during a routine compliance evaluation from the OFCCP. During the review the agency found that the affected classes were paid less than other employees by assigning those in the affected classes to lower-paying job sites. These decisions by Allied Burton were found to violate the Executive Order 11246.
Allied Burton agrees to pay $1,175,000 in back wages and interest to the affected employees. The company also must take actions to ensure their job placement and compensation practices are no longer discriminatory and conduct training for anyone involved in job placement of unarmed security officers.
These findings by the agency makes it clear that the OFCCP takes job placement into consideration when conducting an evaluation to ensure pay equity for employees of federal contractors. The agency hopes these findings and agreement sets a standard for the industry.