OFCCP lacked evidence, either anecdotal or statistical, to show discrimination
On October 3, 2016, the DOL filed an administrative complaint against Analogic, a health care technology manufacturing company, for compensation discrimination against female assembly workers at its headquarters location in Massachusetts. The suit included claims under both class bias theories: disparate impact (neutral policy) and disparate treatment (intentional discrimination).
OFCCP requested that Analogic adjust its “compensation system to eliminate compensation disparities between males and females” and provide pay adjustments, backpay and benefits the affected female employees. To support its suit, OFCCP cited analysis by a labor economist; however, Analogic’s own expert undermined OFCCP’s analysis, according to the ALJ. The company expert’s analysis did not show any difference in female wages that was statistically significant and OFCCP’s analysis failed to consider tenure, which was considered a key factor used to set pay.
The DOL ALJ tossed out the suit saying the OFCCP lacked evidence, either anecdotal or statistical, to show discrimination. ALJ Colleen Geraghty said that OFCCP didn’t show that Analogic had a policy that led to its paying female “assemblers’” less than their male colleagues or that it even underpaid women at all, and that its evidence male managers mistreated female assemblers was “weak and unpersuasive.” She also indicated that OFCCP “failed to identify the employment practice causing the alleged pay disparity and Analogic successfully challenged the methodology and findings of OFCCP’s statistical evidence.” She added that “OFCCP’s statistical analysis, without any persuasive anecdotal evidence, was insufficient to establishment intentional discrimination.”
According to OFCCP, during a routine compliance review which began in December 2011, women working in the assembler 2 and assembler 3 positions were found to be making less than their male counterparts. In a statement released by OFCCP, “our investigation found that Analogic knew or should have known that its total compensation policies discrimination against female assemblers on the basis of gender.”
The case was based off of how Analogic paid employees it had transferred from Copley Controls Corp., a company in which it bought in 2008. Beginning in 2012, Analogic took over personnel and compensation decisions for the former Copley workers.
Two failed conciliation meetings were held on December 24, 2014 and July 17, 2015.
Original OFCCP Press Release – October 3, 2016
Where are You with Pay Equity?
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