In a release dated 11/23/10, the OFCCP filed an administrative complaint against Meyer Tool. Meyer Tool is a federal contractor that manufactures engine parts for the aerospace industry and has a 176.1 million prime contract with the Department of Defense. The company is located in Ohio and has 1,000 employees in Cincinnati and northern Kentucky. The complaint alleges that there were statistical indicators of adverse impact against black applicants for entry-level machinist positions between January 1, 2004 and December 31, 2004. In particular, the OFCCP alleges that the difference in selection rates for whites and blacks was 3.48 standard deviations. According to BNA, the DOL estimated the class size at “over 50”. The complaint also alleges failure to comply with recordkeeping, applicant tracking, and affirmative action obligations under Executive Order 11246 and its implementing regulations at 41 C.F.R. Part 60.
The OFCCP reviewed Meyer Tool’s Cincinnati facility beginning in March 2005 and conducted an onsite review in February 2008. A predetermination notice was filed with the company in March 2008, and a notice of violations was made in April 2008. Subsequent negotiations between OFCCP and Meyer Tool failed to elicit a settlement. The complaint seeks remedies, including lost wages (and interest) for the affect class and for Meyer Tool to hire at least 14 class members. The OFCCP threatened potential sanctions against Meyer Tool, including cancellation of current contract and debarment from future contracts.
What’s not clear from either OFCCP or BNA reports, or the text of the complaint (case number 2011-OFC-3) is what the cause was of the alleged adverse impact.
By Art Gutman Ph.D., Professor, Florida Institute of Technology