Savannah River Nuclear Solutions to pay employees in wage discrimination settlement

Investigators find federal contractor underpaid some female and African American workers

 

Savannah River Nuclear Solutions will pay $234,895 and review its personnel policies to resolve allegations of systemic pay discrimination at its site in Aiken. A compliance review by the U.S. Department of Labor's Office of Federal Contract Compliance Programs found that the management company for the Savannah River nuclear site discriminated against women in some engineering, technical and administrative positions. The review also determined that African Americans were underpaid in certain operation specialist positions.

"Workers often don't know how their pay compares with that of their colleagues, so discrimination like this can go undetected. That's why OFCCP's ability to conduct audits of contractors' pay practices is critical to closing pay gaps based on race and gender," said OFCCP Director Patricia A. Shiu, who represents the department on President Obama's National Equal Pay Enforcement Task Force.

OFCCP investigators determined that from 2009 to 2010, Savannah River paid 57 female employees less than their male counterparts, and 15 African American employees less than their white counterparts. The agency found a statistically significant difference in pay even after taking into account legitimate factors affecting pay. The company denied liability, but entered into a conciliation agreement to resolve the alleged violations.

"Women and African Americans are underrepresented in the science, technology, engineering and mathematics professions. It is disturbing that at Savannah River, we found that many were employed in a STEM job, but were paid less than male or white counterparts because of discrimination," said OFCCP Southeast Regional Director Samuel Maiden.

Executive Order 11246 mandates that federal contractors must not discriminate in pay or other compensation on the basis of sex or race. Savannah River is a federal contractor.

In addition to back pay, the company will evaluate whether promotion decisions, performance evaluation ratings, procedures for assigning work, training opportunities, leave policies, assigning applicants to jobs, and limiting job transfers have a negative effect on compensation of women and African Americans.

Savannah River will also develop new policies to eliminate practices that affect compensation of women and African Americans adversely. The company will conduct an annual compensation analysis during the term of the conciliation agreement. If the analysis shows systemic race- or gender-based pay disparities, Savannah will increase the salaries of women and African Americans.

A partnership of Fluor Corp., Honeywell International Inc. and Newport News Nuclear Inc., Savannah River Nuclear Solutions has a contract to maintain and operate the Savannah River site, a nuclear reservation built in the 1950s. It is the only source for new tritium gas for the U.S. nuclear weapons stockpile and the corporate laboratory for the U.S. Department of Energy's environmental management work, which includes nuclear material disposition, waste management and environmental cleanup. Obligated contract amounts range from $2.5 billion in 2009 to $948 million in 2014 and more than $500 million in 2015.

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.

Royal Tire Will Pay $182,500 for Wage Discrimination Against Female Executive

EEOC Lawsuit Charged St. Cloud Tire Company Underpaid HR Director For Years in Violation of Federal Law

 

Royal Tire, Inc., a commercial and retail tire company based in St. Cloud, Minn., will pay $182,500 and be subject to detailed consent decree which resolves a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced. The decree was approved on July 31, 2014 by Judge John R. Tunheim of U.S. District Court for the District of Minnesota.

The EEOC's lawsuit charged that between January 2008 and June 2011, Royal Tire discriminated against its female human resources director, Christine Fellman-Wolf, by paying her lower wages than it paid a male employee who held the very same position. The EEOC's investigation showed that when Fellman-Wolf became HR director she was paid $35,000 less per year than her male predecessor, and $19,000 less than the minimum salary for the position under Royal Tire's own compensation system. Fellman-Wolf complained about the disparity and asked to be compensated fairly, but Royal Tire did not make up the difference.

Pay discrimination is illegal under the Equal Pay Act of 1963 (EPA), which prohibits sex-based wage differentials for work requiring equal skill, effort, and responsibility performed under the same or similar working conditions. It is also illegal under Title VII of the Civil Rights Act of 1964, which generally prohibits employment discrimination-including in compensation-on the basis of sex. Both statutes are enforced by the EEOC, and EEOC's lawsuit charged that Royal Tire had violated both. The EEOC filed suit on June 21, 2013 in U.S. District Court for the District of Minnesota (Equal Employment Opportunity Commission and Fellman-Wolf v. Royal Tire, Inc., Civil Action No. 13-cv-1516 (JRT/LIB)) after first attempting to reach an pre-litigation settlement through its voluntary conciliation process.

"We are very pleased with this consent decree," said EEOC General Counsel David Lopez. "This is the latest in a series of cases where the Commission was able to successfully vindicate the rights of women under the Equal Pay Act."
The successful EPA enforcement actions noted by the General Counsel included EEOC v. Harmony Public Schools (http://www.eeoc.gov/eeoc/newsroom/release/3-6-14a.cfm),EEOC v. Checkers (http://www.eeoc.gov/eeoc/newsroom/release/4-2-14.cfm), and EEOC v. Extended Stay Hotels (http://www.eeoc.gov/eeoc/newsroom/release/2-19-14.cfm)

John C. Hendrickson, the EEOC's regional attorney for the Chicago district, said, "Too many employers appear to think that it's enough just to let women in the door, and that no one is going to notice if the money in their pay envelope is less than men's who are doing the same work. Bad guess. Employers should know that such pay discrimination is a violation of federal law under two statutes and that it's a top law enforcement priority for the EEOC. That should be the takeaway for employers-and women-who have been watching this case."

In addition to substantial monetary relief to Fellman-Wolf, Royal Tire must comply with the three-year consent decree, which contains an injunction prohibiting the company from any future discriminating based on sex, paying men and women different wages for doing equal work, and retaliating against employees who exercise their rights under federal law. Additionally, the consent decree requires Royal Tire to evaluate its pay structure to ensure compliance with the Equal Pay Act and Title VII, and if it discovers employees who are being paid less than required by law, it must immediately raise the wages for those employees. The decree requires training for Royal Tire's managers and employees under the Equal Pay Act and Title VII, and allows the EEOC to monitor Royal Tire's compliance with the decree. Royal Tire must report to the EEOC any complaints it receives about pay discrimination and provide information on how it handles those complaints.

Trial Attorney Jessica Palmer-Denig, who handled the litigation for the EEOC, noted, "Equal pay for equal work is a fundamental civil right, and the EPA is a strict statute. Employers should carefully examine the actual job duties of their employees, not just employee or job titles, to determine if wages are really equal. If a pay disparity exists between men and women doing the same work, the employer is well-advised to raise the salary of the lower-paid employees immediately."

Source: EEOC

This information is intended to be educational and should not be considered legal advice on any specific matter.

Checkers Franchise To Pay $100,000 to Settle EEOC Pay Discrimination Lawsuit

Fast Food Restaurant Paid Female Shift Managers and Cashiers / Sandwich Makers Less Than Males for the Same Work, Federal Agency Charged

A fast food restaurant franchise, Market Burgers, LLC, doing business as Checkers in West Philadelphia, will pay $100,000 and furnish significant equitable relief to settle a gender pay discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced.

The EEOC charged that Market Burgers paid female shift managers and female cashiers / sandwich makers lower wages than their male counterparts even though they did substantially equal work. According to the lawsuit, Market Burgers also suppressed the wages of female shift managers and cashiers / sandwich makers through discriminatory job assignments, such as scheduling them for fewer hours than their male counterparts.

Such alleged conduct violates the Equal Pay Act of 1963 (EPA) and Title VII of the Civil Rights Act of 1964. The EEOC filed suit (EEOC v. Market Burgers, L.L.C., d/b/a Checkers, Civil Action No. 13-cv-4651) in U.S. District Court for the Eastern District of Pennsylvania after first attempting to reach a voluntary pre-litigation settlement through its conciliation process.

In addition to the $100,000 in monetary relief to aggrieved current and former female employees, the three-year consent decree settling the lawsuit contains important remedial provisions, including prohibiting Market Burgers from future discrimination on the basis of sex with respect to wages. The restaurant will increase the hourly wages of female cashiers / sandwich makers to match the wage rate it pays to males performing equal work. Market Burgers will provide training on complying with Title VII's and the EPA's prohibition against sex-based wage discrimination with a focus on the legal prohibitions on making discriminatory job assignments based on sex. Market Burgers will also report to the EEOC on its handling of all complaints of wage discrimination based on sex or sex-based discrimination in job assignments, as well as post a remedial notice.

"As this lawsuit demonstrated, discrimination in hourly rates of pay and scheduling can result in substantial lost income for female workers and their families," said District Director Spencer H. Lewis, Jr. of the EEOC's Philadelphia District Office. "This is a significant settlement because it remedies pay discrimination based on gender for lower-wage workers and changes the restaurant's compensation practices to ensure that female employees are paid the same as their male counterparts."

EEOC Regional Attorney Debra M. Lawrence added, "The EEOC is a member of the White House Equal Pay Enforcement Task Force, and addressing wage discrimination claims is one of our priority issues. We are pleased that Market Burgers worked with us to resolve this case early in the litigation. The settlement compensates class members for their lost wages and contains important equitable relief and training provisions designed to prevent any future wage discrimination."

Source: EEOC

This information is intended to be educational and should not be considered legal advice on any specific matter.

Extended Stay Hotels to Settle EEOC Pay Discrimination Lawsuit

Hotel Paid Women Less Than Male Employees, Federal Agency Charged

 

Extended Stay Hotels will pay $75,800 and provide significant equitable relief to settle a pay discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced.

According to the EEOC's suit, Extended Stay Hotels paid Latoya Weaver less than male guest services representatives, including some newly hired male guest services representatives, at the hotel's Lexington Park, Md., location. The EEOC further charged that Extended Stay Hotels unlawfully paid other female employees lower wages than those paid to male employees for performing equal work.

Such alleged conduct violates the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964. The EEOC filed suit (EEOC v. HVM L.L.C., D/B/A Extended Stay Hotels, Civil Action No. 8:13-cv-01980) in U.S. District Court for the District of Maryland, Greenbelt Division, after first attempting to reach a voluntary pre-litigation settlement through its conciliation process.

In addition to the $75,800 in monetary relief to Weaver and three other class members, the two-year consent decree resolving the lawsuit enjoins Exended Stay Hotels from engaging in wage discrimination based on sex in the future. The hotel will provide annual training on federal anti-discrimination laws, report to the EEOC about its handling of any wage discrimination claims and post a notice on this settlement.

"Wage discrimination has a pernicious effect on all workers, and often has a profound impact on the economic security of lower-income workers," said District Director Spencer H. Lewis, Jr. of the EEOC's Philadelphia District Office. "This settlement addresses pay disparities and includes equitable provisions that should prevent pay discrimination in the future."

EEOC Regional Attorney Debra Lawrence added, "Remedying gender-based pay discrimination is a priority issue of the EEOC. It is a matter of fundamental fairness that women should be paid the same wages as men when they are doing equal work."

According to its website, http://www.extendedstayhotels.com, Extended Stay Hotels owns and operates nearly 700 hotels across the United States and in Canada.

Enforcement of equal pay laws and targeting compensation systems and practices that discriminate based on gender is of one of six national priorities identified by the EEOC's Strategic Enforcement Plan.

Source: EEOC

This information is intended to be educational and should not be considered legal advice on any specific matter.

 

Medtronic to pay $290,000 in wage discrimination lawsuit settlement

78 Hispanic workers will receive back wages under agreement with US Labor Department

The U.S. Department of Labor's Office of Federal Contract Compliance Programs has resolved claims of pay discrimination affecting 78 Hispanic workers employed at the Medtronic Interventional Vascular Inc. manufacturing facility in Danvers, Mass.

In court filings, OFCCP alleged that Medtronic, a federal contractor, discriminated against 78 entry-level Hispanic senior production associates by paying them less than their white counterparts, in violation of Executive Order 11246. OFCCP also filed a consent decree memorializing the settlement with the Labor Department's Office of Administrative Law Judges after the company agreed to resolve the claims.

"Pay discrimination robs workers of the wages they deserve and takes from their families countless opportunities they might have had," said OFCCP Director Patricia A. Shiu. "Because pay discrimination is often hidden from workers, OFCCP's enforcement in this area is essential. I am pleased that we were able to work with Medtronic to finally resolve this case, provide compensation to the affected workers and fix the pay practices that led to this disparity in the first place."

Under the terms of the consent decree, Medtronic will pay the affected workers $290,000 in back wages and interest for pay disparities dating back to April 2008. Furthermore, the company will conduct training on its equal employment opportunity programs for all people involved in making decisions about compensation at the Danvers facility, and ensure that all of their pay practices fully comply with the law.

Medtronic Interventional Vascular Inc. is a wholly-owned subsidiary of Medtronic Inc., based in Minneapolis, Minn. In FY 2012, Medtronic Inc. was awarded more than $33 million in federal contracts to supply medical and surgical equipment as well as laboratory supplies to numerous government agencies, including hospitals associated with the U.S. Department of Veterans Affairs.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. These three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. For more information, please call OFCCP's toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.

OFCCP v. Medtronic Inc. and Medtronic Interventional Vascular Inc. Case No. 2013-OFC-0004

Source: DOL

This information is intended to be educational and should not be considered legal advice on any specific matter.