The Department of Labor announced that it had reached a $3 million settlement with two FedEx Corp. subsidiaries to address discriminatory hiring practices. The settlement also requires FedEx to change its hiring practices and provide anti-discrimination training.
As we have noted in several prior posts, the OFCCP is ramping up its enforcement efforts. This is the latest big money settlement achieved by the OFCCP in a matter of months. (10/11 Cavines Beef $600,000 settlement and 9/11 Tyson Foods $2.25 million settlements to name a few).
In statements to Reuters, FedEx denied any wrongdoing and noted that the OFCCP filed a complaint based solely on statistical analysis and not based on any individual complaints. Interestingly in cases like this, it means lots of individuals will be receiving a check without probably even knowing they were discriminated against or that a complaint had even been filed.
It is important for all employers, not just federal contractors, to insure that they have records of applicants and hiring decisions in order to defend against such failure to hire cases. If you do not have a record retention policy, we suggest you implement one asap.