Worley Group will pay $500,000 in back pay and interest and $500,000 in salary adjustments
During a routine compliance evaluation in Houston with the Worley Group the OFCCP found that the company discriminated against 42 affected employees beginning on or before December 21, 2016. In April 2019, Worley Group assumed control of Jacobs Engineering’s Houston operations and responsibility for the compliance evaluation. OFCCP found that the company paid affected employees working in control systems engineering, project engineering, quality control, and scheduling/planning less than their counterparts.
Worley Group agreed to pay $500,000 in back wages and interest to 42 affected employees. They will also allocate $500,000 for salary adjustments and will provide compensation training to managers and human resources personnel.
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OutSolve’s Take
This is another “simple” statistical finding, a significant statistical difference in pay, with no specific action identified as having caused the alleged pay discrimination. Did the company discriminate, or was it that they just couldn’t find the documentation to defend themselves? The round numbers in the settlement suggest that they were not connected too strongly to what any pay differences might actually have been.
As part of its Affirmative Action Program obligations, every Federal contractor is required to analyze its compensation systems to identify gender, race, or ethnicity-based disparities, and to take appropriate corrective action where necessary. This begins with the development and implementation of good recordkeeping practices, so that where differences based on race, ethnicity, or gender are identified, they can be defended as the result of legitimate, non-discriminatory factors, or appropriate corrective action can be taken.
Pay equity issues have been a focus for the OFCCP for many years, and we expect that it will continue to be a focus for the Biden Administration. OutSolve offers Pay Equity Analysis Services to assist clients in meeting their Affirmative Action Program requirements. Additional information on OutSolve’s Pay Equity Analysis or other compliance services may be obtained at info@outsolve.com or by calling 888-414-2410.