Posts Tagged ‘settlement with the DOL’

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.

Sewing Company in Massachusetts to Pay $890K to Settle Wage Claims Filed Against it by US DOL

It’s going to take government action to stand up for the common man or woman. So thank goodness for the U.S. Department of Labor, which just brought an action to make sure that employees at a Massachusetts sewing company got their fair wages.

The DOL announced on March 10 that it had reached an agreement with UnWrapped, Inc.,  allowing employees of the Massachusetts sewing factory to recover $890,021 in back wages and liquidated damages to resolve past violations of the federal Fair Labor Standards Act.

UnWrapped failed to pay proper overtime rates to 327 piece rate and hourly workers between April 2014 and April 2016, and failed to keep accurate records, Wage and Hour Division investigators found.

Who knows? You might be sleeping on an Unwrapped-sewn product tonight., UnWrapped is a Lowell, Mass., company that produces products, such as mattress covers, pillows, tote bags and custom items, under contract

The division’s investigation was part of a joint enforcement effort with the Fair Labor Division of the Massachusetts Attorney General’s Office. The state’s investigation identified alleged violations of Massachusetts law involving failure to pay minimum wage, failure to provide earned sick time and retaliation against two workers who cooperated with the investigation, for which the company will pay $293,170.

Under the terms of the Wage and Hour Division agreement, UnWrapped will complete payment of back wages and damages to the workers by no later than March 15, 2017, and will submit proof of payment to the division. The company has paid a civil money penalty of $8,350 for a child labor violation and also agreed to refrain from retaliation against any employees for filing a complaint or testifying in a matter related to the FLSA.