On July 22nd, 2024, the Department of Labor (DOL) announced a $4.2 million conciliation agreement over gender wage discrimination allegations. Specifically, the DOL’s Office of Federal Contract Compliance Programs (OFCCP) and a federal financial services provider were involved. As a result, the $4.2 million will go towards future pay adjustments to resolve alleged compensation discrimination. Earlier, the DOL announced a $12 million settlement involving corporate-wide workplace safety compliance.
Background of the Gender Wage Discrimination Claim
In summary, routine OFCCP compliance evaluations at a select number of the service provider’s offices put this suit into motion. Chiefly, audits of four of the business’ Boston-area establishments raised concerns about gender wage discrimination. In short, these questions involved base pay and bonuses for female managing directors who did not receive similar compensation when compared to their male counterparts. Correspondingly, the OFCCP determined that the employer’s actions violated Executive Order 11246 (EO 11246). Markedly, EO 11246 prohibits federal contractors from discriminating in employment based on federally protected classes, including:
- race,
- color,
- religion,
- sex,
- sexual orientation,
- gender identity, or
- national origin.
Details of the Conciliation Agreement
Specifically, to resolve the gender wage discrimination findings, the company will set aside $4.2 million for future pay equity adjustments. Additionally, the employer will review its current policies and procedures to guarantee that its compensation practices are free of discrimination. Also, the employer will work with a consultant to conduct a pay equity analysis for its establishments. This analysis will include evaluating base pay and total compensation for all employees. In the meantime, the employer has already made at least $483,000 in pay equity adjustments to female managing directors.
Employer Takeaways
In conclusion, according to the agency, the OFCCP’s recent agreement illustrates its commitment to bridging gender wage gaps and successfully achieving pay equality for women. Although the OFCCP focuses its stringent requirements on federal contractor businesses, most other companies must comply with the Equal Pay Act and Title VII of the Civil Rights Act regarding gender wage discrimination prevention.
To assist employers in maintaining workplace compliance on wage & hour issues and other topics, WorkWise Compliance offers the following:
- Virtual Workplace Compliance Assistant – This interactive menu-based module, hosted by a Virtual Assistant named Lisa, guides users to relevant workplace compliance solutions, including forms, notices, checklists, online employee training, and digital compliance guides. Seven different aspects of workplace compliance are covered, including: posters and notices; interviewing and hiring; harassment and discrimination; OSHA compliance and injury reporting; payroll and wage & hour compliance; and HR issues, such as I-9s, terminations, and more!