Cerner Corporation Enters into a Multi-Establishment Conciliation Agreement with OFCCP

Cerner will pay $1,860,000 in back pay and interest to 1,870 qualified applicants

Cerner Corp., a Kansas City-based healthcare and information technology company, underwent a routine Office of Federal Contracts Compliance Programs (OFCCP) compliance evaluation that discovered, from July 6, 2015, to June 30, 2019, the company systemically discriminated against qualified Black and Asian applicants applying for positions to work at five facilities in Missouri and Kansas. The positions sought were medical billing account/patient account specialist, system engineer, software intern, and technical solutions analyst.

Cerner entered into an early resolution multi-establishment conciliation agreement (CA) and agreed to pay $1,860,000 in back pay and interest to 1,870 applicants. Cerner will be putting out a notification to seek out affected class members and will be responsible for searching for candidates that had applied for these positions.

In addition to the financial relief, Cerner will furnish OFCCP with three progress reports and will:

• Make job offers to eligible class members who have: (1) expressed interest in employment; (2) are not currently employed by Cerner in the job at issue or a comparable job with similar compensation; and (3) meet the then-applicable job requirements.
• Ensure that the report-to-work date for class members hired is no later than 14 days after the date the written job offer is accepted.
• Offer at least the current entry-level wage based on the applicant’s qualifications.
• Provide OFCCP with a report of the job offers and hires, including job offers made, the reason for rejection, and eligible class members hired and terminated during the monitoring period.
• Revise its hiring practices, policies, and procedures.
• Retain a consultant to analyze the revised hiring process, evaluate, and make additional recommendations.
• Provide training, within 12 months, for managers and all employees involved in any way in recruiting, selecting, or tracking applicants.

Press release

OutSolve’s Take

This large settlement shows the importance of periodically conducting an applicant-to-hire selection analysis of each of the hiring workflow steps. A federal contractor has several compliance responsibilities under 41 CFR 60-2.17 (b)(2), 41 CFR 60-2.17 (b)(4), 41 CFR 60-2.17 (c), 41 CFR 60-2.17 (d). All these requirements must also be considered when certifying compliance through the OFCCP Compliance portal. Advance knowledge of areas of potential liability will provide federal contractors with the time to adjust the selection process (practices, policies, and procedures), conduct training, and ensure documentation exists to support such changes in the event of an OFCCP compliance evaluation.

OutSolve can conduct adverse impact analysis and assist contractors with the steps towards compliance. For more information, contact your consultant or OutSolve directly at 888.414.2410 or by email at info@outsolve.com.