Company agrees to pay $290,000 to 446 African-American job applicants

DENVER — The U.S. Department of Labor’s Office of Federal Contract Compliance Programs has announced that The Wackenhut Corp., doing business as G4S Wackenhut, has entered into a consent decree to settle findings of hiring discrimination at its Aurora, Colo., facility. The consent decree settles OFCCP’s allegations that Wackenhut engaged in hiring discrimination against 446 rejected African-American applicants for the position of traditional security officer for a two-year period. Wackenhut is headquartered in Palm Beach Gardens, Fla.

“The department is committed to ensuring that federal contractors and subcontractors hire, promote and compensate their employees fairly, without respect to their race, gender, ethnicity, disability, religion or veteran status,” said Patricia A. Shiu, director of OFCCP, who is based in Washington, D.C. “This settlement of $290,000 in back pay on behalf of 446 African-Americans should put all federal contractors on notice that the Labor Department is serious about eliminating systemic discrimination.” OFCCP News Release: [06/09/2010], Release Number: 10-0736-DEN

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Analysis:

Federal contractors are being put on notice by the OFCCP that they are “serious about eliminating systemic discrimination”.  The issue with such a statement is that it seems to imply that systemic discrimination is an inherent part of doing business.  Based on our experiences at EEO Logic, there is often a business rationale for a series of one-off decisions that, when taken as a whole, can have the appearance of systemic discrimination.  A critical self-assessment of programs and practices that includes statistical workforce analysis for hiring, promotions, and compensation decisions can help avoid allegations of systemic discrimination.  EEO Logic has successfully helped clients defend allegations of systemic discrimination.  While a strong defense is important, more important is an annual data review process that includes a self critical statistical analysis.  Contact EEO Logic for a comprehensive workforce evaluation to help prevent you from being the subject of the next OFCCP press release.

The DOL increased awareness, compliance focus, and related fines are likely to spur complaints and potential litigation.  It is more important than ever to ensure your compliance programs, particularly those around compensation, are regularly reviewed.  EEO Logic can help.  EEO Logic provides comprehensive Affirmative Action Plans and compensation reviews in accordance with E.O. 11246.  Contact us if you have any questions or would like to discuss how we can help.

Data Integrity is defined broadly as data that has a complete or whole structure. All characteristics of the data including business rules, rules for how pieces of data relate, dates, definitions and lineage must be correct for data to be complete.

Why is this important to your business?

As with any business-related data, employee data and its integrity is important because clean data is an indicator of how the business is managed.  Poorly structured data, or data that does not flow through a defined set of rules leads flawed analytics, improper conclusions, and may ultimately lead to additional costs.

Why is this important for your Affirmative Action Plan and the OFCCP?

As will most organizations these days, the OFCCP relies on computer technology to assist with their analytics.  They use databases to determine when compliance reviews should be scheduled and they use statistical methods to infer patterns of discrimination.  Once an inference is made, it is much more difficult to explain data anomalies than it would be to have supplied correct data in the first instance.

One of the best ways to show the OFCCP the validity of your AAP and your compliance program is to ensure data integrity.  For a proactive review of your data, or your compensation practices, contact EEO Logic.