In a news release issued June 6, 2011, the Office of Federal Contract Compliance Programs (OFCCP) announced a $250,000 settlement with AstraZeneca to resolve allegations of pay discrimination against women. The news release can be found at: http://www.dol.gov/opa/media/press/ofccp/OFCCP20110829.htm.
The settlement, which was one of the first major compensation cases in recent history, was part of a consent decree and order filed with the department’s Office of Administrative Law Judges, following a 2002 routine compliance review at an AstraZeneca facility located in Wayne, PA. In 2006, the OFCCP issued a Notice to Show Cause, and in 2010, filed an Administrative Complaint against AstraZeneca, alleging that the company discriminated against female sales specialists, paying them, on average, $1,700 less than their male counterparts.
Under the Consent Decree, AstraZeneca agreed to pay $250,000 in back wages and interest to 124 women who were subjected to pay discrimination while working their Wayne, PA location. In addition, AstraZeneca also agreed to analyze the base pay of over 400 sales specialists working in various parts of the country. If the results of the analysis conclude that females continue to be paid less, the company will adjust salaries accordingly. AstraZeneca also agreed to develop and annually update its affirmative action plan and maintain all supporting data required by law. If the company fails to comply with the terms of the agreement it will jeopardize its current federal contract, valued at more than $2 billion, and any future contracts.
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