Posts Tagged ‘federal contractor’

Fed. Contractor Out $2.9M in Wage Settlement

A major federal contractor has moved to put pay discrimination allegations behind it.

The U.S. Department of Labor announced today it has reached a settlement with Dell EMC that requires the company to pay more than $2.9 million in back wages to remedy alleged pay discrimination violations at four Dell EMC locations in California and North Carolina. Headquartered in Hopkinton, Massachusetts, Dell EMC is a federal contractor providing computing, networking, and data storage solutions.

The settlement follows routine compliance evaluations by the Department’s Office of Federal Contract Compliance Programs (OFCCP) that found, beginning in 2014, Dell EMC systemically discriminated against females in engineering, marketing, and sales roles at its Pleasanton, California, facility and females in engineering and manufacturing roles at its Santa Clara, California, facility. OFCCP investigators found that the company paid women and African Americans in engineering roles at its Durham, North Carolina, facility less than white males. Investigators also found that the company paid African American females in manufacturing roles in Apex, North Carolina, less than white males.

“The Department of Labor appreciates Dell EMC’s cooperation to resolve these issues,” said OFCCP National Director Ondray Harris. “Together, we will ensure that the company complies with equal employment opportunity laws in its compensation practices.”

In its conciliation agreement with OFCCP, Dell EMC denies liability but will pay more than $2.9 million in back pay and interest to the affected class members. The company will also make pay adjustments, and take steps to ensure its pay practices meet legal requirements.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit

Complaint Seeks $100M in Wages Denied to Call Center Workers Misclassified by U.S. Contractor

A complaint filed by the union Monday alleges that a leading federal contractor underpaid about 10,000 workers who help run hotlines for public health insurance programs, including the Affordable Care Act marketplace.

According to the complaint filed with the Labor Department, General Dynamics Information Technology misclassified employees at call centers in Kentucky, Florida, Arizona, and Texas to suppress their wages.

The underpayments amounted to over $100 million over the past five years, the complaint said.

The complaint was filed by the Communications Workers of America. According to the union, which does not represent the workers, the contractor hired or promoted workers into roles that require special training but paid them below government-set rates for the jobs they performed.

The complaint covers the period since 2013, when GDIT started a $4 billion, 10-year contract with the Centers for Medicare and Medicaid Services.

Auditor in Large Settlement With U.S. Labor Department in Asian Hiring Bias Complaint

KPMG, one of the world’s largest auditing firms, has entered an agreement with the U.S. Department of Labor’s Office of Federal Contract Compliance Programs to resolve allegations of hiring discrimination, the DOL announced today.

The agreement with KPMG LLP follows an OFCCP investigation that found from Oct. 1, 2011, to March 31, 2013, the auditing firm discriminated against 60 Asian applicants for associate audit positions at its facility in Short Hills. The agency determined that KPMG’s actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color or national origin.

KPMG does not acknowledge any liability. It agreed to pay $420,000 in back pay, interest and benefits to the 60 Asian applicants for associate audit positions. The company will also provide associate audit job opportunities to six affected applicants as positions become available. In addition, KPMG will take steps to ensure its personnel practices, including record-keeping and internal auditing procedures, meet legal requirements.

“Together, the department and KPMG will ensure that this issue is resolved, and that the company has the measures in place to comply with federal hiring and employment law,” said OFCCP Acting Director Thomas Dowd.

The company has contracts valued at more than $14 million with federal agencies including the U.S. departments of Energy, and Housing and Urban Development, as well as NASA and the IRS.

Bank of American Settlement With DOL Closes Books on Quarter-Century Old Race Bias Case

It took almost a quarter century, but Bank of America has settled a legacy race bias case that the U.S. Labor Department filed against its predecessor NationsBank.

The U.S. Labor Department on Monday announced that Charlotte-based BOA has agreed to pay $1 million in back wages and interest to 1,027 applicants for North Carolina clerical, teller and administrative positions a generation ago.

The U.S. Labor Department alleged that NationsBank systematically discriminated against black applicants for entry-level jobs. The jobs were for North Carolina clerical, teller and administrative positions.

NationsBank merged with the Bank of America, N.A. in 1998.

African-American job seekers who applied for an entry-level position at NationsBank’s Charlotte facility in 1993 and were not hired are invited to visit the DOL’s website at, where they can also find information about this and other recent OFCCP settlements, or call 855-216-0427.

The banks are subject to nondiscrimination requirements enforced by DOL because they handle federally-insured deposits.

For more on the settlement, click here.

Google Sued by U.S. DOL To Compel Hand Over of Compensation Data in Government Audit

Google “Google” tonight and you will learn that the giant data company is locked in legal battle with the U.S. Department of Labor over its refusal to hand over compensation data.

The DOL announced today that it has filed suit against Google–a government contractor–to compel it to provide requested compensation data and documents for the multinational company’s Mountain View headquarters.

DOL says it is seeking information “as part of a routine compliance evaluation.”

The Office of Federal Contract Compliance Programs asked the technology giant to submit information in September 2015 about its equal opportunity program and to provide supporting documents as part of a scheduled compliance review. As a federal contractor, Google must agree to permit the federal government to inspect and copy records and information relevant to its compliance with the equal employment laws administered by OFCCP.

Filed with the department’s Office of Administrative Law Judges, the lawsuit seeks to enforce Google’s obligations to provide OFCCP with compensation data, documents and requested information to complete its audit.

Federal contractors are scheduled for routine audits through a neutral selection process. The lawsuit seeks an order requiring Google to cooperate fully with the scheduled compliance review and to meet the requirements of all laws enforced by the agency. If the company fails to comply, the department asks the court to cancel all of Google’s current government contracts and to debar the company from entering into future contracts.

Amerprise Financial in $128K Settlement With DOL For Underpaying Black Account Processors

Most attention is paid to women and men receiving unequal pay, but here’s a case where the differences in pay were due to race.

The U.S. Department of Labor announced today that Ameriprise Financial, one of the country’s leading financial companies, will pay $128,200 in back wages and interest to 20 black employees in unlicensed service professional positions, after an OFCCP compliance review found the company violated Executive Order 11246 by paying black employees who processed routine account service requests less than their similarly situated white counterparts.

The Office of Federal Contracts Compliance Programs conducts review of federal contractor operations.

At the time of the compliance evaluation, the company under review was known as Ameriprise Bank, FSB, which subsequently reorganized as Ameriprise National Trust Bank and is now known as Ameriprise Financial, Inc. With a nationwide network of 10,000 financial advisors, the company currently offers asset management, advisory and insurance services. The client service delivery unit provides services and transaction processing for advisors and clients. Ameriprise Financial, Inc. is based in Minneapolis.

The agency invited other possible victims of this pay discrimination to come forward and join the class. The invitation went out to class members who worked in an unlicensed service professional position between Feb. 19, 2013 and Feb. 18, 2014 at Ameriprise Financial, Inc. reporting to Minneapolis.

DOL: Enterpise Car Rental Subsidiary Barred Blacks From Management Trainee Jobs

An Enterprise car rental subsidiary isn’t playing fair when it comes to entree-level management trainee jobs, according to a lawsuit filed by the U.S. Department of Labor.

The DOL alleges that  Enterprise RAC Company of Baltimore, LLC, a subsidiary of one of the world’s largest vehicle rental companies and a federal contractor, is discriminating against African-American applicants pursuing those jobs.

A review by DOL’s Office of Federal Contract Compliance Programs determined that African-American and white applicants were not treated equally, and that African-American applicants were substantially more likely to be rejected at the initial screening stage and after the first interview.

That discriminatory hiring continues to this day, the lawsuit charges.

As a federal contractor, Enterprise is prohibited from discriminating in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran.

Here’s the DOL’s announcement of the lawsuit.