The U.S. Department of Labor’s Office of Federal Contract Compliance Programs recently closed an agreement with a uniform rental company to address alleged gender-based pay discrepancies at one of its location. This conciliation deal involves substantial back pay and interest amounting to $226,341 for 48 female production department employees.
Company Owes 48 Female Workers Back Pay and Interest After Pay Discrimination
The uniform rental company is mandated to reassess its policies, particularly the base salaries of production department workers, aiming to rectify any existing compensation disparities. Samuel B. Maiden, Regional Director in Philadelphia, emphasized the DOL’s staunch commitment to eradicating pay discrimination among federal contractors, aligning with legal mandates dictating fair compensation practices.
The dispute arose from a routine compliance review conducted by OFCCP, revealing that since July 1, 2020, female non-supervisory production employees received lower compensation than their male counterparts at the uniform rental company. This contravened Executive Order 11246, which expressly prohibits employment discrimination based on race, color, sex, gender identity, or national origin among federal contractors.
Backstory
The uniform rental company headquartered in Massachusetts, previously engaged in similar conciliation agreements following alleged violations in different locations, including North Carolina (2017), New Hampshire (2020), and Pennsylvania (2022).
Established in 1936, the uniform rental company operates under federal contracts with various agencies such as the U.S. Air Force and the U.S. Navy, employing approximately 14,000 individuals across North America and Europe.
The Office of Federal Contract Compliance Programs introduced the Class Member Locator to assist potential beneficiaries of monetary relief or job placement resulting from compliance evaluations or complaint investigations involving companies like the uniform rental company.
In addition to Executive Order 11246, OFCCP enforces statutes like Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, safeguarding against employment discrimination based on disability or veteran status among federal contractors and subcontractors.
Conclusion
Business owners, especially those engaged in federal contracts, must be vigilant in adhering to employment laws and regulations. Non-compliance not only leads to substantial financial repercussions but also tarnishes a company’s reputation and erodes employee trust. Regular audits and reviews of compensation practices are vital to ensure fairness and prevent legal entanglements. Prioritizing equitable pay practices not only upholds the law but also fosters an inclusive and supportive work environment.
Stay informed, stay compliant, and uphold fair employment practices for the betterment of your Business and its employees.