On November 29, 2011, the Office of Federal Contract Compliance Programs (“OFCCP”) filed an administrative complaint with the Office of Administrative Law Judges (“OALJ”) against Cargill Meat Solutions Corporation (“Cargill”) seeking to rescind over $550 million in contracts held by the Company. According to a press release issued by OFCCP, Cargill allegedly discriminated against 4,069 qualified female and minority applicants for entry-level production jobs at its Springdale, Arkansas establishment. OFCCP filed the complaint after it was unable to secure a Conciliation Agreement with Cargill.
Tag Archives: compliance evaluation
OFCCP Files Suit Against Cargill Seeking to Cancel Its Federal Contracts and Debar It From Bidding on Future Solicitations
On November 7, 2011, the Office of Federal Contract Compliance Programs (“OFCCP”) and the Equal Employment Opportunity Commission (“EEOC”) entered a new Memorandum of Understanding (“MOU”) that allows for greater sharing of information between the agencies and collaboration on enforcement initiatives. The stated goal of the MOU is “to promote greater efficiency and coordination, and to eliminate conflict and duplication of effort” between the agencies. There has been a MOU between the two agencies since 1970. Although the MOU has been updated several times (e.g., 1974, 1981, and 1999), the agencies have rarely coordinated or collaborated on enforcement initiatives.
On November 14, 2011, Judge Royce C. Lamberth, the Chief Judge for the Federal District Court for the District of Columbia, held in United Space Alliance, LLC v. Solis, et al. that the Office of Federal Contract Compliance Programs (“OFCCP”) had the right to request compensation data from United Space Alliance, LLC (“USA”) for periods beyond its initial scheduling letter.
The Office of Federal Contract Compliance Programs (“OFCCP”) recently announced that it entered a Conciliation Agreement with Amarillo-based Caviness Beef Packers, Ltd. (“Caviness”) after a compliance evaluation revealed hiring discrimination at two of its meat processing facilities.
OFCCP determined during a compliance review of Caviness that the contractor had statistically significant disparities in the hiring rates, favoring men over women and Hispanics over non-Hispanics. Caviness agreed to enter a Conciliation Agreement with OFCCP requiring it to pay $600,000 to 746 identified class members as back pay and interest. In addition, Caviness agreed to extend offers to 81 women and non-Hispanics as positions become available and to revise its selection procedures for production producers to avoid any future violations.
On October 27, 2011, United Space Alliance, LLC (“USA”), the government’s primary contractor for manned space missions, argued to Judge Royce C. Lamberth, the Chief Judge for the Federal District Court for the District of Columbia, that the Office of Federal Contract Compliance Programs’ (“OFCCP’s”) request for compensation data for periods beyond its initial scheduling letter violated the Administrative Procedures Act (“APA”) and the Fourth Amendment. Continue reading
As we reported last month, the Office of Federal Contract Compliance Programs (“OFCCP”) has significantly revamped its enforcement strategies. As part of that effort, OFCCP recently adopted new procedures for conducting compliance evaluations and developed a new method of screening contractors’ compensation data. Continue reading
Since Director Patricia Shiu took the helm at the Office of Federal Contract Compliance Programs (“OFCCP”), the agency has made a significant shift from the enforcement strategies adopted during the Bush Administration. The past six months have been particularly active as the OFCCP has announced several major enforcement changes and initiatives, including its intent to abandon the three-phase audit process, strengthen affirmative action for disabled individuals and veterans, end I-9 reviews during on site audits, and change how it audits contractors’ compensation practices. More changes are sure to follow as OFCCP pursues its stated mission of implementing “full scale, aggressive enforcement efforts in FY 2011.”
Continue reading this entry at Cooley’s Client Alerts.