GAO REPORT RELEASES REPORT ON DOL’S WAGE AND HOUR DIVISION ENFORCEMENT EFFORTS

The Government Accountability Office (GAO) released a report charging the Department of Labor’s Wage and Hour Division with mishandling nine of the ten cases brought by a team of undercover agents posed as aggrieved workers. The report was entitled “Department of Labor: Wage and Hour Division’s Complaint Intake and Investigative Processes leave Low Wage Workers Vulnerable to Wage Theft.”

EEOC FILES DISABILITY LAWSUIT AGAINST MINING COMPANY

The EEOC announced that it filed a lawsuit against Hibbing Taconite Company alleging it denied a job applicant a reasonable accommodation for his hearing impairment and then rejected him from employment because of his disability. The EEOC alleged the company initially refused to interview the job applicant when it learned that he was hearing-impaired and required an interpreter. Later the company allegedly interviewed him, but would not provide him with the necessary reasonable accommodations to take pre-employment tests.

NURSING HOME TO PAY $300K TO SETTLE PREGNANCY DISCRIMINATION LAWSUIT

The EEOC announced that a North Carolina based nursing home and chain will pay $300,000 to settle a pregnancy discrimination lawsuit in which the EEOC alleged the company had, since at least 2002, subjected pregnant employees to different terms and conditions than non-pregnant employees. Pregnant employees were allegedly required to obtain a full medical clearance in order to continue working.

EEOC LOSES OVERTIME ARBITRATION

The EEOC announced an arbitrator’s ruling that the EEOC’s own practice of giving time off to commission employees who worked extra hours was insufficient for certain investigators and mediators. The arbitrator ruled that most other investigators, mediators and paralegals in non-exempt status should have been offered the option of extra pay rather than just compensatory time.

DISABILITY EMPLOYMENT RESOURCE AVAILABLE FROM DOL

The Department of Labor’s Office of Disability Employment Policy recently released its new Four-Step Reference Guide to help employers recruit, hire and retain employees with disabilities.

SUPPLY COMPANY TO PAY $495K TO SETTLE RACE BIAS CASE

The EEOC announced that a building material supplier will pay $495,000 to five former workers to settle a race bias lawsuit. The EEOC alleged in its lawsuit that the company discriminated against African American employees by subjecting them to differential discipline and termination, creating a hostile work environment, and retaliation against employees who objected to the discrimination.

IFCO SYSTEMS NORTH AMERICA $1.6 MILLION FOR OVERTIME BACK WAGES

The Department of Labor announced that IFCO Systems has paid $1.6 million in back wages to 1,751 employees in 17 states who allegedly were not properly paid for overtime hours worked as required by the Fair Labor Standards Act (FLSA). The DOL also fined the company $963,050 in civil money penalties.

HBCU SETTLE RACE BIAS CLAIMS WITH EEOC

The EEOC announced that Benedict College, a historically black university in Columbia, South Carolina, will pay $165,000 to settle a lawsuit alleging the school violated Title VII by terminating three white faculty members.

BILL INTRODUCED TO DEBAR FEDERAL CONTRACTORS EMPLOYING ILLEGAL ALIENS

Rep. Ginny Brown-Waite (R-Florida) has introduced a bill (Border Control and Accountability Act, H.R. 1668) that would suspend or debar federal contractors that employ illegal aliens. The bill would also prohibit the Department of Homeland Security from contracting with companies that do not use E-Verify.

HEALTHCARE COMPANY TO PAY $450K FOR NATIONAL ORIGIN BIAS

The EEOC announced that a healthcare company will pay up to $450,000 to a class of Hispanic employees at its nursing homes and assisted living facilities who were subject to harassment, different terms and conditions of employment, promotion, compensation, and treatment through the implementation of an English-only rule enforced only against Hispanics.

OWNER OF ARIZONA COMPANY TO PAY $267K FOR SEXUAL HARASSMENT OF FEMALE WORKERS

The EEOC announced that a federal district court entered a judgment for over $267,000 and injunctive relief in a discrimination lawsuit brought by the EEOC against Sunfire Glass, Inc. The EEOC alleged the company’s owner subjected a class of female employees to severe physical and verbal sexual harassment.

STORE CHAIN TO PAY $292.5K TO SETTLE HARASSMENT LAWSUIT

EEOC announced that Nordstrom will pay $292,500 to 10 former employees to settle a lawsuit that alleged a department store manager harassed Hispanic and black employees based on their national origin, race, and color and retaliated against those who complained about the harassment.

EEOC ISSUES EMPLOYER BEST PRACTICES ON WORK/FAMILY BALANCE

The EEOC issued a technical assistance document on best practices to avoid discrimination against workers with caregiving responsibilities. The report was released at a public meeting to discuss the importance of policies that protect caregivers in an economic downturn and builds on the EEOC’s 2007 guidance on the issue.

LABOR SECRETARY INTRODUCES FY 2010 BUDGET VIA WEB

In a live web chat on Thursday May 7, 2009, Department of Labor Secretary Hilda L. Solis rolled out the agencies FY 2010 budget. During the presentation, the Secretary specifically addressed the budget for the Office of Federal Contract Compliance Programs (OFCCP). The 2010 budget calls for a significant increase in both funding and staff. More specifically, the funding calls for an increase in the budget from $82.1 million to $109.5 million (33 percent increase). The additional funding will be used to develop a new case management system, hire an additional 213 FTE, fund experts to verify OFCCP’s allegations, and release funding for litigation. This additional hiring will bring the total number of employees from a current 585 to 798. The budget addressed the complexities associated with the OFCCP’s compensation Standards and Guidelines that were released in 2006 and how new staff will be brought in to assist with the enforcement with this initiative.

In addition, the budget request includes $2 million to develop a new case management system to enhance OFCCP’s compliance and enforcement strategies.

A press release about the FY 2010 budget and budget details are posted on the DOL web site.