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Federal Contractor To Pay Over $1.2 Million in Back Pay And Interest After OFCCP Finds Alleged Pay Discrimination

OutSolve

Labor Department review identifies gender pay disparities in Georgia, Florida

While the EEO/AA world waits anxiously for news regarding any changes the new presidential administration plans to make to the Affirmative Action regulations, the OFCCP continues it's quest to uncover pay equity discrimination.

While compensation settlements are not as common as findings of alleged discrimination in hiring, there is still substantial risk for Federal contractors when it comes to OFCCP audits and their evaluations of pay. OFCCP can take multiple paths of evaluation when reviewing a contractors' pay practices and proactive internal reviews, with expert guidance, are a must.

See excerpt from OFCCP Press Release and link to the entire text below.

https://www.dol.gov/newsroom/releases/ofccp/ofccp20170112

ATLANTA – LexisNexis Risk Solutions will pay over $1.2 million in back pay and interest and provide additional relief to resolve allegations of systemic pay discrimination against women at its facilities in Alpharetta, Georgia, and Boca Raton, Florida.

LexisNexis provides computer-assisted legal and business research and risk management services. During fiscal years 2015 and 2016, the company had millions of dollars in federal contracts with the U.S. Departments of Homeland Security, Justice, Transportation and Labor, and the Office of Personnel Management and the General Services Administration.

Two separate investigations by the US Department of Labor’s Office of Federal Contract Compliance Programs found that, as of December 2012 and continuing thereafter, LexisNexis paid 26 female employees in Operational Leadership jobs substantially less than males employed in the same jobs in Boca Raton, Florida. OFCCP’s investigations further found that, as of December 2012, LexisNexis paid 185 female employees in Operational Leadership jobs substantially less than their male counterparts in Alpharetta, Georgia. The agency found a significant difference in pay in both locations even after taking into account legitimate factors that affect pay level. Executive Order 11246 prohibits federal contractors from engaging in compensation discrimination on the basis of sex.

“It is unlawful for federal contractors to discriminate in pay on the basis of sex,” said Acting OFCCP Director Thomas M. Dowd. “Through this settlement, the affected class members will be compensated for their losses. We are pleased that the contractor worked cooperatively with us and has agreed to review and revise pay policies and procedures as necessary.”

While not admitting liability, LexisNexis has agreed to pay over $1.2 million in back pay and interest, and to monitor practices that affect compensation for women adversely. The company also agreed to pay over $45,000 in salary adjustments to women employed at the Boca Raton facility and will conduct an annual compensation analysis during the term of the conciliation agreement.

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