To repeat our “siren song:” It’s the goal of every employer to reduce, reduce workers’ compensation cost. Laws suits, fines, non-compliance with federal and state laws COST MONEY.
Pre-employment screening is a tool employers use to determine whether applicants can safely perform the jobs they are hired for and locate workers who are otherwise qualifed for the jobs for which they are applying. It is not meant to be used to discriminate against classes of workers, as one employer discovered. Be careful your policies don’t unintentially discriminate against a protected class.
Manufacturer Pays Dearly for Engaging in Hiring Discrimination
The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) reports a large, well-known southern manufacturer agreed to settle findings of hiring discrimination against 1,912 rejected minority and female applicants for entry-level positions engaged in for a period of one year.
During a scheduled compliance evaluation of the employer, OFCCP investigators alleged hiring disparity in:
1. Inconsistent selection procedures for entry-level positions.
2. Use of pre-employment tests negatively impacting minority applicants and insufficient evidence of validity to support test use.
In addition to paying the 1,912 applicants $900,000 in back pay with interest, the company must:
1. Discontinue use of the test in question when hiring for entry-level positions.
2. Provide 61 entry-level positions, (11 already filled).
3. Undertake extensive self-monitoring measures to ensure all hiring practices fully comply with the law and immediately correct any discriminatory practices. (workersxzcompxzkit)
4. Ensure compliance with Executive Order 11246 record-keeping requirements.
The Office of Federal Contract Compliance Programs enforces Executive Order 11246 and other laws prohibiting employment discrimination by federal contractors.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: Robert_Elliott@ReduceYourWorkersComp.com or 860-786-8286.
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