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International Development Company Chemonics International Inc. Agrees to Pay $482K To African American Applicants in Hiring Discrimination Case

OutSolve

OFCCP posts latest settlement related to adverse impact in hiring.

OFCCP continues to identify issues in the hiring processes of Federal contractors. The settlement below must remind contractors that record keeping and the ability to identify gaps in the selection process are critical to risk assessment and Affirmative Action Planning.

Posted by OFCCP. See link to full Press Release and excerpt below:

https://www.dol.gov/newsroom/releases/ofccp/ofccp20161005

WASHINGTON – International development company and federal contractor Chemonics International Inc. has agreed to pay $482,243 in back wages, interest and benefits to 124 African-American applicants. The agreement settles U.S. Department of Labor findings that the company discriminated on the basis of race in hiring for its professional entry-level program.

The company has entered into a conciliation agreement with the department’s Office of Federal Contract Compliance Programs to resolve this and several other identified violations of Executive Order 11246, including its failure to maintain required records and conduct internal audits.

“Winning federal contracts, paid for with U.S. taxpayer dollars, is a privilege, not a right. With that privilege comes the obligation to practice equal employment opportunity towards all demographic groups of workers in this country,” said OFCCP Director Patricia A. Shiu. “I am pleased Chemonics has agreed to take the steps needed to correct the problems we uncovered in its hiring process.”

During a scheduled compliance review, OFCCP investigators discovered that Chemonics utilized a hiring process that denied equal employment opportunity to qualified African-American applicants for professional positions that support the company’s international economic development projects. Of the 124 African Americans who applied to the company’s program for entry-level professionals during the review period, not a single one was hired.

In addition to paying the monetary settlement, the company, while denying liability, will hire eight of the applicants who were denied jobs, and has agreed to implement an auditing system to monitor all personnel activity and to preserve employment records required by law.

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