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Gender Matters: The High Cost of Hiring & Pay Discrimination.

Two blindfolded business executives at a desk

On Nov. 19, 2015, the Office of Federal Contract Compliance Programs (OFCCP) reported that it reached a $1.813 million settlement with federal contractor, G&K Services (G&K) to remedy the systemic hiring and sex-based pay discrimination violations the OFCCP says G&K made at nine of its U.S. facilities including 2 in Texas (Houston and Coppell) from 2011-2015. According to the OFCCP, G&K discriminated against 444 women employees by assigning them to lower paying job duties and filling higher paying jobs with men. Further, G&K allegedly failed to provide equal opportunity to 456 Black and 111 White male general laborer applicants at its Houston, Texas and Charlotte, North Carolina facilities.

G&K denies liability, but agreed to pay $1.813 million to members of the affected classes, and to extend 58 opportunities for women employees to move into higher paying positions and 78 job opportunities to the black and white male applicants who were not hired.  Ultimately, federal contractors must take care to avoid discrimination in the workplace because the OFCCP “will not tolerate employment discrimination by companies that do business with the federal government,” says U.S. Secretary of Labor Thomas E. Perez.  For assistance with questions concerning these issues or with affirmative action plan compliance, please contact us.