Last week, OFCCP announced two settlements worth a combined $1.2 million with BSN Sports LLC and with the Life Insurance Company of North Texas (a subsidiary of CIGNA) to resolve allegations of discrimination against Black and Latino applicants.
According to the conciliation agreement between OFCCP and BSN Sports LLC, the contractor will pay $600,000 to about 3,000 unsuccessful applicants for positions at its Indianapolis facility. The allegations claim that company discriminated against 1,880 black, 1,188 white, and 219 male applicants for general production positions and against 311 male applicants for production artist positions. BSN denies these claims but will provide 120 General Production and 4 Production Artist job opportunities to class members. The contractor also agreed to retain and monitor selection and training process documents at least annually to ensure nondiscrimination.
OFCCP Midwest Regional Director Carmen Navarro stated, “BSN Sports is working cooperatively with the U.S. Department of Labor to improve its compliance with federal law by resolving allegations of discriminatory hiring and agreeing to implement proactive measures in the hiring of applicants to production positions.”
Life Insurance Company of North America has reached an agreement with OFCCP to pay $650,000 to 770 applicants who applied at their Plano, Texas office. Even though the hiring rate for Black and Hispanic applicants was higher than the census availability, a review by OFCCP found discrimination against 31 qualified black applicants and 4 qualified Hispanic applicants who applied for the Group Claims Associate position during the period of March 30, 2011 through April 23, 2013. The contractor denies these claims but has agreed to back pay to the class members and complete annual adverse impact analysis for the purposes of determining if any discrimination exists against applicants based on race, gender, or ethnic group.
This is a good reminder to contractors that higher than expected hiring of a class of applicants is not necessarily an indicator that all is well with the hiring processes. Contractors should be sure to periodically analyze their selection processes to identify if and where adverse impact exists and should take steps to correct any identified processes with an adverse impact that are not job-related or consistent with business necessity.