La Pac Manufacturing Inc. has reached an agreement with the OFCCP and settled claims of systemic hiring discrimination.
The settlement requires the federal contractor to pay more than 300 applicants a total of $235,000 in lost wages.
Federal investigators made a clear statement with this settlement that it is illegal to hire based on a belief that an individual of a certain race will work harder than individuals of other races.
OFCCP Settlement and Findings
- La Pac favored applicants of the Hispanic race and employed them at a higher rate than white or black applicants
- The company rejected 120 white and 185 black job applicants for machine operator jobs that were offered to Hispanic applicants
- Investigators determined La Pac Manufacturing Inc. violated Executive Order 11246, prohibiting federal contractors from discrimination in hiring
- A conciliation agreement was reached with the OFCCP, requiring Le Pac to pay $235,000 in back pay with interest to impacted individuals
- 47 job offers will be made to the discriminated class members as machine operator jobs become available
- The federal contractor also agreed to begin extensive self-monitoring measures to ensure that hiring processes are entirely in compliance with the law, inclusive of record-keeping obligations
La Pac Manufacturing Inc. produces a selection of products used in the food and chemical industries and currently has government contracts worth over $7 million. This unfortunate settlement could have been avoided if the company had more carefully monitored their hiring practices and managers in charge of hiring decisions.
We advise federal contractors to monitor all selection and hiring practices carefully and regularly offer to train to managers concerning their affirmative action responsibilities to address and prevent any potential issues of systemic discrimination.