Federal Contractor Pays $226K to Resolve Pay, Hiring Discrimination Allegations

July 17, 2019

The U.S. Department of Labor (DOL) Office of Federal Contract Compliance has announced the settlement of pay discrimination and systemic hiring discrimination allegations at a federal contractor’s facilities in California and Washington. In total, Universal Protection Service LP, the new owner of both facilities, will provide $226,351 in monetary relief to aggrieved individuals and make 25 job offers to original applicants. Universal Protection Service holds numerous security and technology-based contracts with federal government agencies, departments, and institutions.

Pay discrimination. Universal Protection Service has agreed to pay $51,351 to 14 class members to resolve allegations it violated Executive Order 11246 when it engaged in discriminatory pay practices at its Riverside, California, facility—formerly owned and operated by Allied Barton Security Services.

During a routine compliance evaluation, the OFCCP identified discriminatory job placement and pay practices by Allied Barton (from January 1, 2014, through December 31, 2015) that adversely affected African-American employees in its site supervisor positions. The company’s practices violated EO 11246, which prohibits federal contractors from discriminating in employment based on race, national origin, or gender.

Systemic hiring discrimination. The OFCCP separately announced that Universal Protection Service has entered into a conciliation agreement under which it will pay $175,000 to eligible class members to resolve allegations that it also violated EO 11246 when it engaged in systemic hiring discrimination at its Seattle, Washington, facility—formerly owned and operated by Northwest Protective Services Inc.

In a routine compliance evaluation, the OFCCP found that Northwest discriminated against 398 African-American applicants (from September 19, 2014, to June 28, 2017) for security positions in the Seattle area.

Under the conciliation agreement, Universal Protection Service will make 25 job offers to original applicants, as security positions become available. Further, the company will review and revise its selection process and provide training to hiring managers to prevent instances of discrimination and to meet legal requirements.