Lincoln Electric to Pay $1 Million

Business Woman

OFCCP settles discrimination charges against Lincoln Electric for the second time.

Lincoln Electric Co. settled claims of hiring discrimination for 5,557 African American applicants. The settlement results from an investigation conducted by the United States Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP). Lincoln Electric violated Executive Order 11246.

 OFCCP Settlement and Findings:

  • In the course of a scheduled compliance audit, OFCCP found the company’s online application systems generated several barricades for African Americans to progress in the selection process.
  • Lincoln Electric’s applications, as well as post-application exams, were not correctly supported by a validation study that meets the Uniform Guidelines on Employee Selection Procedures.
  • Lincoln Electric denied 5,557 African Americans (the affected class) the opportunity for employment at their Cleveland facility.
  • The federal contractor will pay $1 million in back-pay, with interest, to the 5,557 affected class members.
  • Lincoln Electric will offer jobs to 48 of the affected class members when positions are available.
  • The company must revise all selection and hiring procedures and policies, including changing its internet application exam, to provide equal opportunity for every employment applicant moving forward.

Lincoln Electric Co. has been a federal contractor since 2005 and has received over $2 million in federal contracts. The company is a repeat offender and was cited ten years ago for discriminating against women and minorities applying for entry-level jobs. The 2003 conciliation agreement awarded $1 million with interest to the affected class members.

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