Twenty-four years after the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) first initiated a compliance review of a NationsBank (now Bank of America) facility in Charlotte, North Carolina, the parties have agreed to settle the case. The NationsBank settlement is just one of a number of settlements announced since NT Lakis staff last conducted a review of OFCCP settlements in March, and continues the unprecedented pace of agreements being negotiated by the agency since last year’s presidential election.
The agency has been making a concerted effort to close out pending enforcement actions that were initiated during the Obama Administration. As with prior settlements involving financial awards from the last few months, compensation and entry-level hiring cases continue to prevail, with inadequate recordkeeping often serving as the impetus for contractors to come to terms.
Please note, just because a contractor decides to settle with OFCCP does not necessarily mean the agency’s allegations ultimately would have been upheld. The OFCCP administrative enforcement process is complex and time-consuming, and as a result, a contractor often will settle simply to avoid the burden and cost of potentially protracted litigation.
Members of the Equal Employment Advisory Council (EEAC) can read more here.