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OFCCP Posts $1.8 Million Dollar Settlement With Uniform Services Contractor Over Discrimination Claim

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US Labor Department recovers more than $1.8 million for employees and job applicants at G&K Services

G&K Services, who provides branded uniform and facility services products has reached a settlement with the Department of Labor over a claim of steering where females were directed into lower paying entry level labor positions than men.

See the details below.

Link to full Press Release: http://www.dol.gov/opa/media/press/ofccp/OFCCP20152242.htm

Excerpt from Press Release:

Systemic hiring, pay discrimination found at laundry facilities across the country

SAN FRANCISCO — The U.S. Department of Labor has reached a settlement with nine facilities of G&K Services, Inc., to remedy systemic hiring and pay discrimination violations identified in compliance evaluations initiated between 2011 and 2015. G&K Services has several federal contracts, which requires the company to adhere to nondiscrimination and affirmative action provisions under Executive Order 11246. A compliance review by the department's Office of Federal Contract Compliance Programs found that G&K discriminated against 444 female employees in laborer positions by disproportionately assigning them to lower paying job duties while filling the higher paying job duties predominantly with men, even though female employees were qualified for and able to perform the higher paying jobs.

"When you accept taxpayer dollars, you are held to the highest employment standards," said U.S. Secretary of Labor Thomas E. Perez. "Workers should be judged on their skills and qualifications, not on their gender or any other arbitrary measure. We will not tolerate employment discrimination by companies that do business with the federal government."

OFCCP determined that this practice of steering women into the lower paying "light duty" jobs led to unlawful sex-based pay discrimination at G&K facilities in Denver; Sacramento, California; Graham and Charlotte, North Carolina; Pleasant Hill, Iowa; Justice, Illinois; St. Paul, Minnesota; and Houston and Coppell, Texas. This practice also resulted in a lower hiring rate for 2,327 male applicants who were equally or more qualified for general laborer positions at the Sacramento, Pleasant Hill, Justice, St. Paul and Coppell locations.

OFCCP also found that G&K failed to provide equal opportunity to 456 African American and 111 Caucasian applicants at its Houston and Charlotte locations when hiring for general laborer positions.

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