Wed, 07/15/2020
Many employers around the country continue to run their operations under inequitable pay structures that create disparities between men and women, despite federal protections against such inequality enshrined in the Equal Pay Act and other authorities. Accordingly, many employers find that shortchanging the women in their workforce ultimately hurts them in the long run.
Nova Southeastern University, a private university in Florida, was recently exposed for illegally paying women in business-related director and manager positions less than their male counterparts. Specifically, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) found 86 women holding positions at the university who were paid less than their male colleagues. Nova Southeastern must now pay $300,000 in back wages to these women, after making salary adjustments to the order of $587,070 in remedying the extant disparities. That comes out to nearly $3,500 in back pay per woman who experienced a pay disparity over the course of the two years that OFCCP investigated.
The violations of law and amounts that Nova Southeastern must pay for its actions are set by laws similar to the Equal Pay Act, but are specific to government contractors and their employees. Executive Order 11246, which was initially signed into law by President Lyndon B. Johnson during a wave of affirmative legislation to protect workers’ rights, extends federal antidiscrimination protections to the employees of federal contractors—who generally are protected by different laws than private companies. The Order placed the enforcement of these antidiscrimination protections within the purview of the Department of Labor, as well as extended the prohibitions of employment discrimination on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin to these workers. Executive Order 11246 also mandates affirmative action policies, for government contractors to ensure nondiscriminatory hiring practices and treatment of their employees. Several administrations have expanded the Order, the most recent of which came in 2014 to prohibit federal contractors and subcontractors from discriminating on the basis of sexual orientation or gender identity; marking a huge shift in offering protections to the LGBTQ community.
In addition to antidiscrimination protections, Executive Order 11246 also prohibits federal contractors and subcontractors from, in certain circumstances, taking adverse employment actions against applicants and employees for asking about, discussing, or sharing information about their pay or the pay of their co-workers. EO 11246, as amended by EO 12086, Sec. 202(3). Employees of federal contractors are thus protected if they want to compare their earnings with each other, which is often how pay disparities come to light.
The consequences for violating Executive Order 11246 can include the employer losing its government contract or having such contract suspended in whole or in part, and the employer may be declared ineligible for further government contracts. Additionally, OFCCP may also impose sanctions and invoke other remedies, including back pay on behalf of employees. EO 11246, as amended by 12086, Sec. 202(7).
If you are the employee of a federal contractor and believe that your employer may be violating Executive Order 11246, please contact MSE at info@mselaborlaw.com.
