OFCCP Settles with G&K Services Inc. for $1.8 Million

By | November 20, 2015

On November 18, 2015, the Office of Federal Contract Compliance Programs (OFCCP) announced a settlement with nine locations of G&K Services, Inc. located throughout the country. The settlement resolves allegations of systemic hiring and pay discrimination, which includes a payment of $1,813,555 to a class of 444 female employees and 2,327 male, 111 Caucasian, and 456 African American applicants. The news release can be found at: http://www.dol.gov/opa/media/press/ofccp/OFCCP20152242.htm.

The OFCCP alleged that between 2011 and 2015, G&K Services disproportionately steered women into lower paying “light duty” jobs, and men into higher paying jobs. This alleged practice also resulted in a lower hiring rate for male applicants applying for general laborer positions. OFCCP also alleged that African American and Caucasian applicants were not given equal opportunity when applying for general laborer positions. G&K Services has agreed to extend 78 job opportunities to the male, African American and Caucasian applicants who were not hired, along with 58 opportunities to move into higher paying positions for the female employees. Most of the OFCCP’s compensation settlements involve allegations of discriminatory steering.

G&K Services has also agreed to complete detailed assessments of its hiring, placement, compensation practices, and job postings and other documents to ensure they provide equal opportunity to all employees and applicants. G&K Services will complete regular adverse impact and compensation analyses at the locations with violations, and will submit them to the OFCCP during the monitoring period.

In 2013, G&K Services settled with the OFCCP for $265,938 to resolve allegations of steering female employees hired as general laborers into lower paying “light duty” positions at a facility in California. The OFCCP also alleged that male applicants were denied the opportunity to compete for lower paying laborer positions. This location, in Santa Fe Springs, CA, is not one of the nine locations included in the current settlement.

Please contact us by calling (732) 446-2529 or sending us an e-mail at glennbarlett@gbcs.net if you are interested in discussing the OFCCP’s settlement with G&K Services, Inc.