The U.S. Department of Labor’s Office of Federal Contract Compliance Programs recently settled with a shipping company following allegations of race-based hiring discrimination across five of its facilities. This conciliation agreement includes a substantial payment of $1,590,000 in back wages and interest to 468 affected applicants, with the company also extending 106 job offers to those impacted.
Shipping Company Owes Back Wages and Interest to 468 Applicants
A routine compliance review by the Office of Federal Contract Compliance Programs found that from May 3, 2019, to May 3, 2021, the shipping company allegedly discriminated against applicants for mail-sorting positions in multiple locations, including Iowa; Pennsylvania; Texas; and Wisconsin. These actions were deemed a violation of Executive Order 11246, which prohibits federal contractors from discriminatory practices based on race, color, religion, sex, sexual orientation, gender identity, or national origin.
Compliance is Not Optional
Michele Hodge, Acting Director of the Office of Federal Contract Compliance Programs, emphasized the significance of this settlement, signaling a firm stance against discriminatory hiring practices. Hodge underscored that compliance with employment laws is not a choice but a mandate. The shipping company, based in Connecticut, provides various services to a broad client base, including technology, logistics, and financial services to Fortune 500 companies, U.S. government agencies, small businesses, large enterprises, and retail operations globally.
The Class Member Locator, launched by the Office of Federal Contract Compliance Programs, aims to assist eligible applicants or workers affected by discriminatory practices, ensuring access to relevant information about settlements and possible relief. Besides Executive Order 11246, the Office of Federal Contract Compliance Programs enforces statutes like Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws reinforce the prohibition of discrimination in employment based on disability or veteran status among federal contractors and subcontractors.
Conclusion
For small and midsize businesses engaged in federal contracts, this case serves as a stark reminder of the legal and financial ramifications of discriminatory practices. Ensuring fair and equal employment opportunities isn’t just about abiding by the law—it’s about fostering an inclusive and diverse workplace culture that benefits both employees and the company’s reputation. Compliance is not just an obligation; it’s a crucial step toward building a more equitable and thriving workplace.