Breaking employment laws can lead to substantial repercussions, as evidenced by a recent agreement between a prominent small arms and ammunition manufacturer, and the U.S. Department of Labor (DOL). The resolution involves a payment of $630,000 in back wages and interest to address alleged hiring discrimination against 286 Black and women applicants at its facility over two years.
Company’s Compliance Review Reveals Unfair Hiring Practices
An investigation initiated by the Department’s Office of Federal Contract Compliance Programs highlighted potential violations of Executive Order 11246, which mandates that federal contractors refrain from discriminatory practices based on various factors including race, color, religion, sex, sexual orientation, gender identity, or national origin. The alleged infractions occurred during the hiring process for Adjuster II positions between December 9, 2017, and December 9, 2019.
To address these allegations, the small arms and ammunition manufacturer entered an early-resolution conciliation agreement, committing to revamp its selection procedures, personnel practices, and hiring policies to ensure they are devoid of discriminatory elements. Furthermore, the company has agreed to extend job offers to 46 affected Black and female applicants as suitable positions become available.
What Business Owners Can Learn
Aida Collins, the Southeast Regional Director at the Office of Federal Contract Compliance Programs in Atlanta, emphasized the criticality of eradicating discriminatory practices within employment frameworks, especially among federal contractors.
The small arms and ammunition manufacturer, headquartered in Missouri, serves as a supplier of small arms ammunition to the Department of the Air Force and several other federal agencies. With a global workforce spanning more than 20 countries across six continents and approximately 8,000 employees, this case serves as a stark reminder of the far-reaching implications of non-compliance with employment laws.
The Office of Federal Contract Compliance Programs has launched initiatives like the Class Member Locator to identify individuals entitled to monetary relief or job placement resulting from compliance evaluations or investigations. If you believe you might be impacted, utilizing this resource can provide insights into settlements and potential entitlements.
Enforcing Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, the OFCCP remains dedicated to ensuring fair and non-discriminatory employment practices across federal contractors.
Conclusion
For small and midsize businesses, the small arms and ammunition manufacturer case serves as a cautionary tale. Violations of employment laws, especially regarding discrimination, can result in substantial financial penalties and tarnish a company’s reputation. It underscores the crucial need for meticulous adherence to anti-discrimination statutes and a fair hiring process. Prioritizing compliance isn’t just a legal requirement; it’s pivotal for fostering an inclusive and equitable work environment essential for business sustainability and reputation management.