U.S. Department of Labor Recovers More Than $2.9 Million To Resolve Alleged Pay Discrimination Violations at Dell EMC

PRESS RELEASE
5-14-18

SAN FRANCISCO, CA – The U.S. Department of Labor has reached a settlement with Dell EMC that requires the company to pay more than $2.9 million in back wages to remedy alleged pay discrimination violations at four Dell EMC locations in California and North Carolina. Headquartered in Hopkinton, Massachusetts, Dell EMC is a federal contractor providing computing, networking, and data storage solutions.

The settlement follows routine compliance evaluations by the Department’s Office of Federal Contract Compliance Programs (OFCCP) that found, beginning in 2014, Dell EMC systemically discriminated against females in engineering, marketing, and sales roles at its Pleasanton, California, facility and females in engineering and manufacturing roles at its Santa Clara, California, facility. OFCCP investigators found that the company paid women and African Americans in engineering roles at its Durham, North Carolina, facility less than white males. Investigators also found that the company paid African American females in manufacturing roles in Apex, North Carolina, less than white males.

“The Department of Labor appreciates Dell EMC’s cooperation to resolve these issues,” said OFCCP National Director Ondray Harris. “Together, we will ensure that the company complies with equal employment opportunity laws in its compensation practices.”

In its conciliation agreement with OFCCP, Dell EMC denies liability but will pay more than $2.9 million in back pay and interest to the affected class members. The company will also make pay adjustments, and take steps to ensure its pay practices meet legal requirements.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.

 

Learn more by visiting www.johansongroup.net or www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

University of Denver to Pay $2.66 Million and Increase Salaries to Settle EEOC Equal Pay Lawsuit

PRESS RELEASE
6-1-18

Female Full Professors at the University’s Sturm College of Law Were Paid Average of Nearly $20,000 Less Than Their Male Counterparts, Federal Agency Charged

DENVER – The University of Denver will pay $2.66 million and furnish other relief to settle a pay discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

The EEOC’s lawsuit charged that the university violated federal law by paying a class of female full professors at the Sturm College of Law lower salaries than it paid to their male counterparts who were performing substantially equal work under similar working conditions.

According to the EEOC’s lawsuit, as of October 2013, salaries of female full professors were on average, $19,781 less than those of male full professors, and all the women’s salaries were below the average salary paid to men. Despite formally recognizing the significant pay disparity in a 2013 memo, the university declined to take corrective action by adjusting salaries of female full professors.

Such alleged conduct violates the Equal Pay Act of 1963 and Title VII of the Civil Rights of 1964, which both prohibit discrimination in compensation based on sex. The EEOC filed its lawsuit, EEOC et al. v. University of Denver, Case No. 1:16-cv-02471-WYD-MJW, in 2016 in U.S. District Court for the District of Colorado, after first attempting to reach a pre-litigation settlement through its conciliation process.

“The favorable resolution of this case is a clear example of the EEOC’s commitment to fully enforcing our federal laws against pay discrimination.  I hope cases like these get the attention of all employers and lead them to not only review their pay practices, but take action to address discrimination when they find it.” said EEOC Acting Chair, Victoria A. Lipnic.

In addition to $2.66 million in monetary damages to seven female full professors who participated in the lawsuit, the consent decree settling the suit also requires the University of Denver to increase the 2018 salaries of the seven female professors; annually publish salary and compensation information to tenure, tenure-track, and contract faculty; and employ a labor economist to conduct an annual compensa­tion equity study.

The university will also work with an independent consultant to review methods and criteria used to determine pay and compensation, and these standards used to determine raises each year will be announced to the faculty in advance of the academic year. The independent consultant will also assist the university to revise its anti-discrimination policies and to conduct an informational campaign and training on those anti-discrimination policies. The decree will remain in effect for six years, but may end a year early based on an established record of compliance. While the decree is in effect, the independent consul­tant will provide regular progress and compliance reports to both the EEOC and the University of Denver. The court approved the settlement and will retain jurisdiction while the decree is in effect.

Noting the importance of protecting civil rights, Senior District Judge Wiley Y. Daniel, who approved the consent decree, stated during the hearing: “We need to make sure we learn from our history and we understand the importance of moving forward, not backwards, moving forward, not sideways.”

“The Equal Pay Act and Title VII are clear that pay discrimination based on a person’s sex is a violation of federal law – no exceptions,” said EEOC Regional Attorney Mary Jo O’Neill. “As we just recently marked Equal Pay Day, the EEOC remains committed to elimination of pay discrimination in the workplace.”

Phoenix District Director Elizabeth Cadle said, “This resolution is an excellent result, not only for the seven women who will receive compensation and salary increases to address past pay inequities, but also for other faculty members who will benefit from increased pay transparency and an annual pay equity study targeted at preventing similar inequities from arising in the future.”

The University of Denver is a private research university in Denver made up of 13 undergraduate and graduate schools and colleges.

The EEOC’s Phoenix District Office has jurisdiction over Arizona, Colorado, New Mexico, Utah, and Wyoming.

The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov.  Stay connected with the latest EEOC news by subscribing to our email updates.

 

Learn more by visiting www.johansongroup.net or www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

A $2+ Million Price Tag Times Two

Pay Inequity/Pay Discrimination can cost an organization a significant sum of money as evidenced in the two following 2018 press release articles, one from the EEOC and the other from the OFCCP.

Johanson Group, an HR/Compensation consulting company has assisted at least a thousand plus clients since 1973 with the review of their employees’ compensation practices including steps to correct pay discrimination issues.  Its sister company, DB Squared, was established in 2005 using the Johanson’s copyrighted 15-factor job rating system methodology and automating its Job Evaluation and Salary Administration Program (JESAP) so that organizations could internalize their compensation program and be able to identify their own pay equity issues.  Both companies are here to support and assist companies by using a proactive approach to avoid being the spotlight in a negative and costly manner.

 

PRESS RELEASE
6-1-18

University of Denver to Pay $2.66 Million and Increase Salaries to Settle EEOC Equal Pay Lawsuit

Female Full Professors at the University’s Sturm College of Law Were Paid Average of Nearly $20,000 Less Than Their Male Counterparts, Federal Agency Charged

DENVER – The University of Denver will pay $2.66 million and furnish other relief to settle a pay discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

The EEOC’s lawsuit charged that the university violated federal law by paying a class of female full professors at the Sturm College of Law lower salaries than it paid to their male counterparts who were performing substantially equal work under similar working conditions. (continue reading……)

 

PRESS RELEASE
5-14-18

U.S. Department of Labor Recovers More Than $2.9 Million To Resolve Alleged Pay Discrimination Violations at Dell EMC

SAN FRANCISCO, CA – The U.S. Department of Labor has reached a settlement with Dell EMC that requires the company to pay more than $2.9 million in back wages to remedy alleged pay discrimination violations at four Dell EMC locations in California and North Carolina. Headquartered in Hopkinton, Massachusetts, Dell EMC is a federal contractor providing computing, networking, and data storage solutions. (continue reading….)

 

Learn more by visiting www.johansongroup.net or www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.

How Are Organizations Utilizing Retiring Baby Boomers’ Compensation?

How Are Organizations Utilizing Retiring Baby Boomers’ Compensation?

One of our public clients has experienced 17% turnover during the first eight months of 2018. The average tenure of the employees leaving this organization is almost 5.5 years and a measurable group of these employees are retiring baby boomers.

The average pay variance between the new hires and terminated employees for the above mentioned client is 16.7% or about $6,365 dollars per employee. With the impact of daily baby boomer retirements, we estimate that organizations will have between 10% and 25% in total compensation dollars to reallocate within their annual employee compensation budgets.

For small to large organizations, the amount of freed-up dollars associated with baby boomer terminations due to retirements can be significant and useful for taking care of high priority compensation needs. Some of these needs will include new hire replacements, funding variable pay incentive plans, addressing pay compression and pay inequity issues, bonus pay for top performers and a variety of other pay initiatives.

For organizations with remaining baby boomers that will retire in the next three to five years, how will you plan to use their 4th quartile base pay salaries to fund other compensation needs?

Learn more by visiting www.dbsquared.com or request a free consultation by visiting https://www.dbsquared.com/consultation-request-ty/.