OFCCP Announces Record Settlement

The Office of Federal Contract Compliance Programs (OFCCP) announced another large settlement related to females and minority hiring. Once again it is related to the use of non-validated tests in high-volume entry-level positions. Look for this to be a recurring theme with the OFCCP over the next several years.

See below for the ESA news release:

Gerber Products Co. in Fort Smith, Ark., agrees to pay $900,000 to minorities and females for hiring discrimination

The U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) announced Gerber Products Co. has agreed to settle findings of hiring discrimination against 1,912 rejected minority and female applicants for entry-level positions. The agreement settles the department's allegations that Gerber engaged in hiring discrimination against minority and female applicants for one year.

During a scheduled compliance evaluation of Gerber Products in Fort Smith, OFCCP investigators found the hiring disparity was in part caused by inconsistent selection procedures for entry-level positions. Additionally, OFCCP found that Gerber used pre-employment tests that negatively impacted minority applicants and determined that there was insufficient evidence of validity to support Gerber's use of the test. Gerber has discontinued its use of the test in the hiring process for entry-level positions. The company is headquartered in Florham Park, N.J.

Under the terms of the conciliation agreement, Gerber will not only pay 1,912 minority and female applicants $900,000 in back pay and interest, but will provide 61 entry-level positions, 11 of whom have already been hired. The company has also agreed to undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law and immediately correct any discriminatory practice. In addition, Gerber will ensure compliance with Executive Order 11246 recordkeeping requirements.

For more information, please visit:
http://www.dol.gov/opa/media/press/esa/esa20090969.htm