OFCCP Announces Systemic Hiring Discrimination Settlements
This week OFCCP announced a pair of settlements in cases alleging systemic hiring discrimination. The payment of back wages to, and commitment to hire allege victims, were part of the settlements in both cases. In the most recent settlement, OFCCP alleged a contractor with $35 million in federal contracts denied jobs to 145 female applicants for pharmacy attendant positions. While denying liability, the contractor agreed to hire 11 female class members and pay $400,000 in back wages with interest to the 145 females who were denied positions.
As has been the case in recent OFCCP settlements, both reviews involved alleged discriminatory selection practices in the hiring of entry-level positions with large numbers of applicants. As part of its allegations in both cases, OFCCP cited to a lack of employment records reflecting the adherence to a consistent hiring practice as part of the contractors’ discriminatory practices. These cases serve as good reminders that having in place proper record keeping and retention policies as well as accurate applicant tracking protocols, including the use of strategic disposition codes, is essential for defending against claims of alleged discriminatory hiring.