During a compliance review of Fort Myer Construction, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) found that the company failed to provide equal employment to applicants and employees at construction locations in Washington D.C. The findings include individuals who applied for laborer positions but were not selected, laborer employees who were wrongfully terminated, and pay disparities for employees who performed the same duties but were paid differently.
OFCCP Settlement and Findings
- OFCCP determined that Fort Myer Construction discriminated against 27 female and 136 African American applicants who had applied for laborer positions but were not selected, even though they were qualified for the positions
- OFCCP determined that the company wrongfully terminated 8 African American laborer workers
- OFCCP identified 156 Hispanic and 44 African American employees.
- The compliance review was started in January of 2011 and covered the personnel activity during the 2010 time period.
- During the audit, the OFCCP found that managers at Fort Myer Construction created a hostile work environment for Hispanic and African American employees and disabled veteran employees.
- More than 300 workers were interviewed during the compliance review process.
- Fort Myer Construction will pay $900,000 in back pay with interest to 371 affected class members.
- The company will make employment offers to 7 females and 30 African Americans from the affected class as laborer openings are available.
- The construction company will implement their affirmative action obligations to include training and an evaluation of their hiring, compensation, and termination strategies to ensure full compliance with Executive Order 11246
Cleary Fort Myer Construction failed to train hiring managers and monitor their hiring and pay practices, not to mention their failure to conduct various statistical analyses to test their process for adverse hiring or pay disparities. CRI encourages contractors to evaluate every step to their hiring process to ensure a uniform approach that is consistently applied.
Furthermore, contractors should conduct selection stage impact ratio analysis to identify selection disparities at each stage of the hiring process. With compensation becoming an intensified focus during OFCCP audits, contractors should mirror OFCCP’s pay analysis process when testing their pay system. It is not only crucial that you prepare an affirmative action plan but implement and disseminate the program to managers and H.R. team members.