NT Lakis staff recently conducted a review of financial settlements involving enforcement actions brought by the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP). This review revealed several compensation settlements, an unusually high number. When we last conducted such a review in November 2016, we noted that the agency appeared to be making a concerted effort to close out pending enforcement actions initiated during the Obama Administration, and that trend has continued based on the number of settlements posted since then. The agreements covered by our most recent review involve audits dating as far back as 2009, and none beginning after the first quarter of 2014.
During the Obama Administration, OFCCP put a strong focus on potential compensation discrimination, resulting in seemingly endless requests from OFCCP compliance officers for documents and information pertaining to pay practices. Several of the settlements we reviewed reflected that emphasis.
In addition to these compensation settlements, there were several other settlements of note, including one involving allegations of discrimination against “minorities” without reference to the specific “disfavored” race/ethnicity groups.
Please note that the fact that a contractor decides to settle with OFCCP does not necessarily mean that 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.