Recent OFCCP Conciliation Agreement

This week, OFCCP posted a conciliation agreement with Crown Equipment Corporation. The agreement all...



Posted by Stephanie Stahr, Associate HR Consultant on March 5 2021
Stephanie Stahr, Associate HR Consultant

This week, OFCCP posted a conciliation agreement with Crown Equipment Corporation. The agreement alleges that Crown was not in compliance with Executive Order 11246 during a compliance evaluation that started in February 2019. OFCCP alleges that Crown was not in compliance with nondiscrimination requirements of the equal opportunity clause. The agreement goes on to specify that when OFFCP analyzed the hiring activity it revealed a statistically significant hiring disparity that affected 49 black applicants for an Assembly Pallet Position when comparted to white applicants. The agency concluded that the statistical shortfall was 4 black hires for the Assembly Pallet position.

Crown has agreed to pay a total amount of $85,000 to resolve the preliminary findings of the hiring disparity. The amount will be paid to affected applicants who are deemed eligible. Once there is a final list of applicants to receive the settlement, Crown will provide the agency a list of payment amounts for each applicant that has been identified.

In addition to the monetary payout, Crown agrees to interview and make job offers to eligible applicants who express interest in employment as vacancies in the Assembly Pallet position occurs. The interviews and job offers should continue until 4 eligible applicants are hired into an open position or the list of eligible applicants who expressed interest in exhausted. Until that time, the eligible applicants will have priority over all other candidates and applicants for the Assembly Pallet positions.

Crown must also revise their hiring process. They will review and revise practices, policies, and procedures that they use to select applicants for the Assembly Pallet positions. This includes reviewing the job qualifications and ensuring all standards are uniformly applied to applicants. Crown must self-monitor their hires for selection rates and train all individuals involved in recruiting, selecting, or tracking applicants for the Assembly Pallet position once the policies and procedures have been reviewed and revised. To read the full agreement and timeline visit OFCCP’s library here.

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