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Dairy Contractor Settles OFCCP Race and Gender Bias Allegations for Nearly $325,000

OFCCP continues to land significant settlements related to hiring

OFCCP continues to land significant settlements related to hiring. See article below.

Summary of Article. On December 23, 2013, the U.S. Department of Labor's ("DOL") Office of Federal Contract Compliance Programs ("OFCCP") announced that Federal contractor Cream-O-Land Dairy Inc. ("Cream-O-Land") settled for nearly $325,000 claims of gender and race discrimination affecting 227 workers who applied for jobs at the company's dairy plant in Florence, New Jersey.

Background of the case. Cream-O-Land Dairy Inc. delivers dairy products to grocery stores, supermarkets and schools throughout New Jersey, New York, Pennsylvania, Delaware and Connecticut. In Fiscal Year 2012, Cream-O-Land sold more than $1.5 million worth of products to a number of Federal agencies, including the Department of Veterans Affairs, the Defense Commissary Agency, the Defense Logistics Agency, the Federal Prison System, and the Department of the Army. Following a compliance review of Cream-O-Land's Florence, New Jersey site, the OFCCP determined that the company used a hiring process that violated Executive Order 11246 because it discriminated against women, African Americans and Asian Americans who applied for warehouse positions in 2010.

Terms of the Settlement. Under the terms of the settlement, Cream-O-Land agreed that it will:

* pay $324,288 in back wages, interest and benefits to the rejected applicants;

* make 24 job offers to the affected class members as positions become available; and

* undertake extensive self-monitoring measures, including committing a minimum of $10,000 for training to ensure that all of its hiring processes comply with the law.

Regarding this settlement, OFCCP Director Patricia A. Shiu stated, "I am pleased that we were able to reach a fair settlement in this case. Today's agreement underscores the notion that federal contractors, like Cream-O-Land, should closely examine their employment policies and practices to identify and eliminate any unfair barriers to equal opportunity."

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This article was prepared expressly for OutSolve, LLC by:

Celia M. Joseph, Esquire

FISHER & PHILLIPS LLP

201 King of Prussia Road

Suite 650

Radnor, PA 19087

cjoseph@laborlawyers.com

Copyright 2014 FISHER & PHILLIPS LLP. All Rights Reserved.

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