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Alleged FedEx Discrimination By Federal Contractors Settled

FedEx, the global shipping giant, will be paying $3 million to resolve allegations of hiring discrimination reports Human Resources Journal.

The agreement came about as a result of efforts by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP). Officials from the OFCCP had gone around FedEx facilities across the country and allege that federal contractors had been violating Executive Order 11246.

As a result of the settlement, reports HR Journal:

The contractors will pay three million dollars in back wages and interest to a total of 21,635 persons who were not hired for entry-level package handler and parcel assistant positions at 22 FedEx Ground facilities and one FedEx SmartPost facility. Additionally, FedEx will be offering jobs to 1,703 of the applicants affected when positions are made available.

Under Executive Order 11246, a company that does business with the federal government, including contractors and subcontractors, must be fair and reasonable in not discriminating on the basis of race, sex, color, religion, national origin, disability, or status as a protected citizen.

Executive Order 11246 imposes obligations on employers with a federal contract or subcontract. If a contract is worth at least $10,000, the employer can't lawfully discriminate based on race, color, religion, sex, or national origin. The nondiscrimination requirement is essentially the same as that imposed under Title VII. If a contract is worth at least $50,000 and the contractor employs at least fifty employees, the employer must also develop and use an affirmative action plan.

If you're a contract or subcontractor and not familiar with this Executive Order please speak to an employment attorney. Often times, litigation emerges not from intentional misconduct, but simply not knowing what your duties as an employer are.

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