Recent OFCCP Settlements: The Hiring Trend Continues

On October 12th, OFCCP announced eight settlements that totaled approximately $1.5 million. Six of the settlements were related to hiring practices. Below is a brief description of each.

Penske Truck Leasing Co., L.P.: A Reading, PA location of Penske Truck Leasing Co. was found toc be in violation of EO 11246 for pay discrimination against 104 female Information Technology and Finance employees. The alleged violation took place between January 1, 2013 and December 31, 2013 and resulted in a settlement of $300,000. Penske has also agreed to the following non-monetary remedies:

  • Evaluate procedures and policies surrounding IT and Finance roles to determine whether certain decisions (e.g., promotion, performance ratings, etc.) have a disproportionately negative effect on female employees’ compensation;
  • Implement new policies to replace those that lead to the alleged pay discrimination;
  • Deliver training on all new policies and procedures to all personnel involved in determining pay;
  • Continue to self-monitor salary decisions and research any disparities.

Hillshire Brands Company: A Hamilton City, TX location of Hillshire Brands Company was found to be in violation of EO 11246 due to hiring and selection procedure discrimination for two positions: 1) entry-level Sanitation positions resulting in shortfalls of 8 White, 24 Black, 4 Asian, and 12 female applicants from April 1, 2012 through June 30, 2013, and 2) Laborer positions resulting in resulting 6White, 8 Black, 1 Asian, and 9 male applicants from August 1, 2012 through October 31, 2012. Additional violations include failure to retain personnel and employment records, failure to create a job group structure with jobs grouped by similar wage, content and opportunities, and failure to conduct adverse impact analyses on each race sub-group. In addition to a $350,000 settlement, Hillshire has also agreed to the following:

  • Retain personnel and employment records;
  • Form job groups on the basis of similar wage, content and opportunities;
  • Conduct adverse impact analyses on each race sub-group.

MVM, Inc.: A Bethesda, MD location of MVM Inc. was found to be in violation of EO 11246 and Section 503 of the Rehabilitation Act of 1973. From August 1, 2013 to July 31, 2015, multiple incidents of harassment and termination threats by supervisors were reported on the basis of national origin (African), sex (female), and disability status. MVM failed to create a working environment free of harassment and failed to address complaints from employees. Additionally, during the same time period, discrimination was alleged against African-born Security Guards who were involuntarily terminated on the basis of their national origin. In addition to a $250,000 settlement, MVM has also agreed to the following:

  • Take steps to ensure and maintain a harassment free work environment;
  • Continue to monitor all personnel activity for any harassment and take appropriate actions
  • Examine and modify termination procedures;
  • Provide each class member the opportunity to obtain the security clearance to work under MVM’s contract and rehire qualified class members as positions become available.

Johns Hopkins Wilmer Eye Institute: A Baltimore, MD location of Johns Hopkins was found to be in violation of EO 11246 for alleged discrimination against African-American applicants for Patient Access Specialist and Ophthalmic Technician Assistant positions between January 1, 2014 and June 30, 2015. The Wilmer Eye Institute will pay $119,000 to 242 African-American Patient Access Specialist applicants and $56,000 to 46 African-American Ophthalmic Technician Assistant applicants. Additional violations include failure to maintain records, failure to develop and implement an internal audit and reporting system, and failure to list all employment openings with the state workforce agency job bank or local employment service delivery system (ESDS). In addition to the settlement, the Wilmer Eye Institute has agreed to the following:

  • Examine, monitor and modify its hiring process and selection procedures to ensure selection criteria are applied uniformly and non-discriminatory decisions are made;
  • Offer employment to class members as positions become available;
  • Preserve records for no less than two years from the time of the personnel action;
  • Develop and implement an effective internal audit and reporting system;
  • List all openings with the appropriate ESDS.

SP Plus Corp (formerly Central Parking Systems): A Dallas, TX location was found to be in violation of EO 11246, due to hiring and selection procedures that revealed discrimination against female applicants for Valet Attendant positions. The period in question was January 1, 2011 through June 30, 2016. In addition to a financial settlement of $52,000, Central Parking was directed to:

  • Revise its hiring processes and implement training
  • Consider hiring 15 “qualified eligible class members” as positions became available
  • Collect and maintain all personnel and employment records

Powell Electrical Systems: A Houston, TX location was found to be in violation of EO 11246, due to hiring and selection procedures that revealed discrimination against female, Black, and White applicants for Assemblers. The period in question was September 3, 2012 through September 3, 2014. In addition to a financial settlement of $275,000, Powell Electrical Systems was directed to:

  • Revise its hiring processes and implement training
  • Consider hiring 72 “qualified eligible class members” as Assembler positions became available
  • Collect and maintain all personnel and employment records
  • Maintain, and have available for inspection, adverse impact analyses

U.S. Security Systems: An Irving, TX location was found to be in violation of EO 11246, due to hiring and selection procedures that revealed discrimination against female, Black, Hispanic, and Asian/Pacific Islander applicants for Security Officer positions. OFCCP conducted the analyses for two different time periods. The race analysis included data from April 1, 2011 through April 30, 2012, with a result of one shortfall for Hispanics and Asians/Pacific Islanders. The sex analysis included data from May 1, 2012 through April 30, 2013. U.S. Security Systems was also found to be in violation of Section 503 and VEVRAA, due to an absence of an AAP for both. In addition to a financial settlement of $275,000, U.S. Security Systems is required to:

  • Revise its hiring processes and implement training
  • Consider hiring 34 “qualified eligible class members” as Security Officer positions became available
  • Collect and maintain all personnel and employment records
  • Conduct adverse impact analyses, specifically step analysis if adverse impact found for the total selection process
  • Prepare and maintain an AAP for individuals with disabilities and protected veterans
  • Post availability of AAP for individuals with disabilities and protected veterans

SAIC: This conciliation agreement was for a Functional AAP covering SAIC’s Customer Group Staff. A review of data from February 1, 2014 through January 31, 2015 revealed impact against (seven) males for Engineer Technician I positions. As part of the conciliation agreement, SAIC is required to:

  • Revise its hiring processes, including creating job descriptions and partnering with “Year Up” program to recruit diverse talent
  • Implement selection training
  • Develop and implement an applicant tracking process
  • Consider hiring 9 non-hire applicants and give each a $3000 signing bonus
  • Collect and maintain all personnel and employment records

By Yevonessa Hall, EEO Compliance Manager & Senior Consultant, and Bryce Hansell, Consultant, at DCI Consulting Group

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