Chemonics International, a worldwide development company, will pay $482K to settle charges of race-based hiring discrimination with the Office of Federal Contract Compliance Program (OFCCP). A routine compliance investigation, conducted by the OFCCP, uncovered allegations that Chemonics used hiring practices that systemically denied employment to African American applicants, who were qualified for entry-level professional programs that support Chemonics’ international economic development projects.
Conciliation Findings and Agreement
- Chemonics has entered a conciliation agreement with the OFCCP to resolve race-based hiring discrimination along with additional violations of Executive Order 11246, including failure to conduct internal audits and maintain required records.
- During the review period conducted by the OFCCP, none of the 124 qualified African Americans who had applied to Chemonics for entry-level professional positions were hired.
- Chemonics will pay $482,243 in back pay with benefits, and interest to 124 affected African-American applicants.
- The conciliation agreement will settle all findings of race-based hiring discrimination for professional programs at Chemonics.
- Chemonics agrees to hire eight African-American applicants who were denied employment,
- Chemonics further agrees to preserve the required employment records and implement a review process to monitor personnel activity.
Chemonics International holds federal contracts with the U.S. Agency for International Development that support global economic development projects in health care, agriculture, and education. It is ironic to see an international development company being charged with allegations of race-based hiring discrimination, especially when these allegations could have been avoided with proper monitoring of the company’s hiring procedures and implementing an affirmative action plan.
Federal contractors should learn from these allegations and take action by reviewing and monitoring all internal hiring processes, correcting signs of adverse impact or discrimination, and maintaining all employment records required by law.