Dive Brief:
- The U.S Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) enforcement collections hit a record high in 2019. The agency collected $40,569,816 in fiscal year 2019 — $16 million more than in fiscal year 2017, the next highest year. OFCCP also said that monetary settlements obtained from fiscal year 2017 to fiscal year 2019 exceeded those for fiscal year 2010 through fiscal year 2016 combined.
- The Early Resolution Program put into place in fiscal year 2019 led to a number of corporate settlements early in the review process, OFCCP said. Fiscal year 2019 was also a strong year for compliance assistance, OFCCP said. OFCCP answered over 4,500 Help Desk inquiries, the highest ever in a single year, and provided guidance through compliance assistance guides, FAQs and stakeholder events.
- OFCCP enforces laws that make it illegal for federal contractors and subcontractors — which employ nearly 25% of America's workforce, OFFCCP said — to discriminate on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or veteran status.
Dive Insight:
It may not come as a surprise that this year has been a record one for OFCCP. Last month, the agency announced settlements totaling $20 million with Bank of America, Dell and Goldman Sachs to settle pay discrimination claims. Bank of America agreed to pay $4.2 million in back wages and interest to resolve alleged hiring discrimination violations discovered during OFCCP compliance evaluations. Goldman Sachs agreed to pay a total of $9,995,000 in back pay and interest to resolve alleged findings of gender- and race-based pay discrimination. Under Dell's settlement, the technology company agreed to pay a total of $7 million in lost wages, interest and benefits to resolve "indicators" of race- and gender-based pay discrimination, DOL said.
To prevent allegations of pay discrimination and fend off expensive settlements, HR can review organizational compensation policies and practices, work with supervisors to identify disparities and conduct regular pay audits. Employers may wish to conduct these audits with the assistance of counsel to ensure the information is privileged and not discoverable in the event of a lawsuit.
HR can also take a look at the use of salary history in determining wages. It's been widely reported that use of previous wage history perpetuates lower pay for women and minorities. As a result, many states and localities are banning use of the information in setting pay.