G&K Services, Inc. has settled for $1.8 million with the DOL for pay and systemic hiring discrimination at nine of the company’s locations.
G&K is a provider of facility service products and uniforms; the company has acquired several government contracts that require following affirmative action obligations and maintain compliance with Executive Order 11246. The OFCCP investigation identified several violations.
Settlements & Findings: G&K Services
- Found to have discriminated towards 444 female labor employees by assigning them job duties paying less than male workers who predominantly received higher paying job duties when female workers were able to and were equally qualified to perform higher-paying duties
- OFCCP found the practice of steering females into the lower-paid light duty was the cause of sex-based pay discrimination at G&K locations in Charlotte and Graham, North Carolina; Denver; Pleasant Hill, Iowa; Houston and Coppell, Texas; Justice, Illinois; St. Paul, Minnesota and Sacramento, California.
- Steering practices by G&K also resulted in a decreasing hiring rate for over 2,000 male job applicants who were more than or equally qualified for labor positions at the Pleasant Hill, Coppell, Sacramento, Justice, and St. Paul facilities.
- OFCCP found G&K failed to offer equal opportunity to 111 Caucasian and 456 African American job applicants at the Charlotte and Houston facilities during the hiring process for laborer positions.
- G&K has agreed to a conciliation agreement and pay $1,813,555 to affected class members
- The contractor also agrees to offer 58 female employees the opportunity to move into higher-paid positions, extend 78 employment offers to the male, African American, and white job applicants
- G&K agrees to start a thorough assessment of its compensation, hiring and placement processes, its employment postings, and any additional documents to ensure they do not discriminate based on race or sex and offer equal opportunity
- It will be required for G&K to conduct consistent compensation and adverse impact analyses at the facilities identified having violations, and regularly report the OFCCP on the progress of these obligations
G&K could have avoided this costly settlement if they had consistently monitored their hiring practices, conducted compensation and adverse impact analyses, and adequately trained their hiring managers.