Thursday, April 17, 2008

Affirmative Action Employer Agrees to Pay $1.5M to Settle OFCCP Allegations of Discriminatory Hiring Process

Today, the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) announced that Dallas-based Vought Aircraft Industries Inc. would be settling “allegations of hiring discrimination based on race and gender and agreed to pay $1.5 million in back wages to 1,045 applicants. . . . OFCCP investigators found that Vought's hiring process disproportionately eliminated African American and Asian males, as well as all females, applying for the assembly trainee/aircraft assembly beginner jobs. OFCCP concluded that two steps in Vought's hiring process — an application screening and a test — were primarily responsible for the discrimination. Under the terms of the consent decree, Vought will pay the 1,045 rejected applicants $1,377,500 in back pay with interest. The company also will pay about $70,000 for applicants interested in participating in a four-week aircraft assembly training program, and from that program 35 applicants will be hired into assembly trainee/aircraft assembly beginner positions. Additionally, in lieu of retroactive seniority salary, the new hires will be paid $1,500 each.”


According to the OFCCP, “Vought, a manufacturer of aircraft parts and auxiliary equipment contracts with the U.S. Department of Defense, has discontinued its use of the test and modified its screening procedures, and will undertake extensive self-monitoring measurements for two years to ensure that all hiring practices fully comply with federal law. Additionally, the company will ensure compliance with recordkeeping requirements.”


The OFCCP is an agency within the United States Department of Labor's Employment Standards Administration and enforces Executive Order 11246 and other laws that prohibit employment discrimination by federal contractors. The agency monitors contractors to ensure that they provide equal employment opportunities without regard to race, sex, color, religion, national origin, disability or veteran status.


Insomniacs can read the OFCCP’s full press release at http://www.dol.gov/opa/media/press/esa/esa20080418.htm.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.