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OFCCP webpages disclose FY 2017 settlements not publicized via agency press releases

February 14th, 2017  |  Cynthia L. Hackerott

Continuing a practice that began in fiscal year (FY) 2016, the OFCCP’s Class Member Locator webpage and online FOIA Reading Room reveal some conciliation agreements and consent decrees entered into by the OFCCP thus far in FY 2017 for which the agency did not issue a corresponding press release. In all of the cases listed below, the contractor did not admit liability.

AmeriQual Group LLC. AmeriQual Group LLC, a food processing company, will pay $325,532 to resolve allegations of hiring discrimination at its Evansville, Indiana facility. The company produces, packages, assembles and distributes shelf-stable food products to the U.S. Department of Defense, other federal agencies and major food companies. Its products include “Meals Ready to Eat,” commonly known as MREs, used by the armed services. In an OFCCP compliance review, the agency concluded that from November 18, 2010 through September 26, 2011 the federal contractor discriminated against 221 qualified men who applied for entry-level “Production 1” positions and were not hired. In December 2015, the OFCCP announced that it had filed an administrative suit to pursue these charges. Since January 2010, the company has held federal government contracts worth more than $700 million, according to that OFCCP statement.

Through the investigation, the OFCCP determined that the company segregated its production line workforce. It based work assignments on gender stereotypes: putting women in “light duty” jobs and having men do more labor intensive work, the agency alleges. Through interviews with company officials and employees, OFCCP investigators learned women were selected for table inspector jobs, where a majority of the hiring occurred, while men were relegated generally to loader and utility positions, where less hiring took place. The agency also asserts that AmeriQual attempted to create after-the-fact justifications for failing to hire male applicants by making notations on “sticky notes” and other documents and then adding them to files. Those notations did not appear on the original documents that the company provided at the beginning of the investigation, the OFCCP says, adding that AmeriQual also failed to provide specific hiring records during the course of the investigation.

Pursuant to a consent decree signed in mid-January 2017, the company will also extend job offers until 27 male class members from the agreement’s “Priority Employment List” have been hired or until the list is exhausted, whichever occurs first. In addition, it will modify its applicant selection procedures to ensure it do not create barriers to employment, and require all employees involved in its application/selection and hiring process to participate in a minimum of two (2) hours of EEO training. ALJ Morris D. Davis entered an order approving the consent decree on February 1, 2017.

Apex Systems, LLC. Apex Systems, LLC, a staffing firm specializing in information technology, life sciences, and healthcare, signed an agreement in November 2017 promising to pay $148,500 to resolve OFCCP allegations that it against 82 qualified black applicants who applied, and were not hired, for “Recruiter” positions at the contractor’s Atlanta, Georgia establishment. The period of alleged discrimination was January 1, 2012 through December 31, 2013. Under the agreement, signed by agency officials in December 2017, Apex will also extend six job opportunities and revise its selection procedures and conduct related training for HR personnel, managers and supervisors to ensure that this violation does not recur. It has also agreed to remedy cited recordkeeping violations.

Crossmatch Technologies. In early January 2017, Crossmatch Technologies, a leading biometric identity management solutions company, agreed to pay $49,305.29 to resolve allegations of compensation discrimination at its Palm Beach Gardens, Florida headquarters. An OFCCP compliance review found that the federal contractor discriminated against 13 women by paying them less than their male counterparts. Under the agreement, Crossmatch will also make pay adjustments and revise its compensation policies and procedures to ensure that this alleged violation does not recur. The period of alleged discrimination is October 1, 2013 to the date of agreement.

John Q. Hammons Hotels Management, LLC. The former employer of the employees at World Golf Village Resort Hotel, John Q. Hammons Hotels Management, LLC, entered into a conciliation agreement in late January 2017, in which it agreed to pay a total of $47,000 to resolve allegations of hiring discrimination at its St. Augustine, Florida facility. According to the OFCCP, the hotel and hospitality services establishment discriminated against 75 qualified women who applied for “Banquet Set Up & Housekeeping Utility” positions, from January 1, 2013 through December 31, 2013, and were not hired. Under the agreement, Atrium Hospitality LP, current owner and operator of World Golf will also extend 5 job opportunities to eligible class members as positions become available.

LandCare USA, LLC. To resolve allegations of hiring discrimination at its Las Vegas, Nevada facility, LandCare USA, LLC (formerly known as Trugreen Landcare) a residential and commercial landscaping company, agreed to pay $161,899. The OFCCP asserts that the company, from May 1, 2012 through December 31, 2013, discriminated against 243 qualified Non–Hispanic applicants who applied for “Laborer Non–Driver” positions and were not hired. Pursuant to an October 2016 conciliation agreement, the contractor will also extend 29 job offers and will immediately cease using the challenged selection procedures, practices, and/or policies which the OFCCP maintains disparately affected the hiring of non–Hispanic applicants for the positions at issue.

Medline Industries, Inc. In January 2017, Medline Industries Inc., a surgical and medical instrument manufacturing and distributing company, signed a conciliation agreement in which it promised to pay just under $100,000 to resolve OFCCP allegations that discriminated against 44 male applicants for line assembly positions and against 53 female applicants for packager positions at its Waukegan, Illinois, facility. Under the agreement, the contractor will also extend two male and three female job opportunities and will review and evaluate policies affecting hiring selection process. The period of alleged discrimination is April 1, 2011 through March 31, 2012.

Splunk, Inc. Agreeing to provide $2.7 million in back pay, Splunk, Inc, a software company that specializes in collecting, analyzing and storing machine generated big data, entered into a conciliation agreement to resolve OFCCP claims that, from August 1, 2010 through July 31, 2012 , it discriminated against 872 African American and Asian applicants who applied for “Technical Professional,” “Senior Technical Professional,” and “Administrative Professional” positions and were not hired. Under the January 19, 2017 agreement, the company will also extend 11 job offers and hire an independent expert (subject to OFCCP approval) to review and evaluate its hiring and recruitment practices.

Unifirst Corporation. UniFirst Corporation, a workplace uniform and laundry services company, entered into a conciliation agreement with the OFCCP in late January 2017 to resolve two sets of allegations. First, the contractor agreed to pay $75,000 to resolve charges that it discriminated against 17 women at its Charlotte, North Carolina facility by disproportionately assigning them to lower paying “Job Group 7 Production” positions while males were hired into higher-paying Job Group 7 Production positions. UniFirst will also extend 7 job opportunities with retroactive seniority to eligible class members who return to work for the company, Second, the company will pay $116,505.76 to settle claims it discriminated against 494 men who applied for Job Group 7 Production positions and were not hired at its Charlotte, North Carolina facility, and will extend 6 job opportunities. In addition, UniFirst will revise its policies and procedures. The period of alleged discrimination in both cases is September 1, 2009 through February 28, 2014.

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