Training & Compliance

Don’t Go Down for Hiring and Pay Discrimination

Yesterday we explored how hiring and pay discrimination is a major focus for the Office of Federal Contract Compliance Programs (OFCCP). Today, we’ll learn what it means.

By Susan Schoenfeld

Lessons Learned

In addition to highlighting OFCCP’s concentrated focus on systemic hiring and compensation issues, these recent cases (check out yesterday’s Advisor to learn about those cases) show that contracts with large numbers of applicants for entry-level positions must be vigilant in carrying out consistent, nondiscriminatory hiring practices and in documenting and maintaining records of such efforts.

In addition to the threat of high-cost settlements, the OFCCP recently launched the Class Member Locator (CML), the purpose of which is to identify applicants or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief or consideration for job placement.

Potential class members in the settlements discussed in this article and other potential class members who believe they were impacted by contractor discrimination are being encouraged to contact the OFCCP for inclusion in class lawsuits.

And in 2016 …

In fiscal year (FY) 2016, the OFCCP says it will continue to focus on systemic hiring and compensation cases where agency reviews can have the greatest impact. In order to do so, the OFCCP will continue to train staff and will hire 10 new, specialized staff members with expertise in conducting the complex data analyses necessary for evaluating hiring and pay practices.

With the additional staff, the OFCCP will provide sufficient expert support for improved data collection and analysis. The OFCCP says that its compensation targets are projected to increase to 40 percent of all discrimination violations and settlements in FY 2015 and in FY 2016 (up from 35 percent in FY 2014). As a result, by 2016, the OFCCP expects that virtually all compensation violations and settlements will involve systemic issues.

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