OFCCP Resolves Hiring Discrimination Claims Against Total Minorities

In February 2017 Office of Federal Contract Compliance (OFCCP) entered into a conciliation agreement with Oil States Skagit SMATCO, LLC to settle allegations of discrimination against minority applicants for mechanic positions at the offshore equipment and service provider’s Houma, LA location. Specifically, OFCCP’s analysis found adverse impact against minority applicants for the company’s Mechanic I job title during the timeframe of August 2011 through April 2013. OFCCP also maintained that Oil States Skagit SMATCO, LLC did not maintain all handwritten notes created by hiring managers during the interview process, which is part of the contractor’s affirmative action obligations. The conciliation agreement also detailed violations of failing to set a placement goal, and not listing job openings with the state workforce agency of local employment service delivery system.

Among the remedies included in the conciliation agreement, Oil States Skagit SMATCO, LLC has agreed to distribute $65,000 in back pay and interest to fourteen affected class members. Additionally, as Mechanic I positions become available, the contractor must extend job offers for those positions to qualified class members who apply, until seven minority class members have been hired, or until the list of class members who express interest is exhausted, whichever happens first. Oil States Skagit SMATCO, LLC has agreed to review their job descriptions, interview protocols, and hiring procedures for the Mechanic I position, as well as review their document retention policies.

It is important to note that this settlement is for total minorities, and not a specific race category. In recent years, OFCCP settlements have focused on allegations of discrimination or adverse impact against a specific race category, rather than total minorities. In the seven conciliation agreements related to race, included by OFCCP on their website for fiscal year 2017, this is the only one that has a protected class of total minorities. While contractors should continue to analyze their adverse impact with a favored group analysis that evaluates the impact against specific races, they would be prudent to not discount the impact against total minorities.

With the Oil States Skagit SMATCO, LLC conciliation agreement, OFCCP continues its recent trend of not publicizing compliance reviews settled with conciliation agreements including financial remedies. Contractors should keep a close eye on these types of settlements, as they can provide a view to the agency’s enforcement strategies and priorities as they shift into the new administration.

To learn more about affirmative action plan preparation, or pay equity services, please contact Berkshire Associates at bai@berkshireassociates.com or click here.