On July 19, 2012, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) announced that it has entered into a $550,000 consent agreement with privately held, Denver-based Leprino Foods. The agency alleged that Leprino’s LeMoore, CA facility systemically discriminated against African-American, Hispanic, and Asian applicants when it required on-call laborer applicants to take a pre-employment exam that was “not job-related, as it tested applicants’ skills in mathematics, locating information and observation,” skills that OFCCP deemed are “not critical to the entry-level tasks performed by on-call laborers, such as inspecting products, monitoring equipment and maintaining sanitation at the facility.” OFCCP “made its findings after a scheduled compliance review in which OFCCP investigators conducted interviews, analyzed company data and reviewed documents provided by the company.” The Associated Press reported on July 19 that “Leprino defends its use of the test but says it settled, partly because its case would’ve been heard by an administrative law judge with limited possibilities for appeal and it had already decided to stop using the test.” Leprino’s rationale is understandable when you note in the OFCCP Press Release that the consent “decree” was signed by an “administrative law judge with the Labor Department.” Details of the consent agreement are included in the OFCCP Press Release, which follows in its entirety:
OFCCP News Release: [07/19/2012]
Contact Name: Michael Trupo or Josh Lamont
Phone Number: (202) 693-6588 or x4661
Release Number: 12-1443-SAN
US Labor Department settles charges of hiring discrimination with federal contractor Leprino Foods
Agreement includes $550,000 in compensation for more than 250 job applicants who are African-American, of Asian or Hispanic descent
LEMOORE, Calif. — The U.S. Department of Labor’s Office of Federal Contract Compliance Programs has entered into a consent decree with Leprino Foods Inc. to resolve charges of systemic hiring discrimination at the company’s Lemoore West facility. The consent decree, signed today by an administrative law judge with the Labor Department, settles OFCCP’s allegations that Leprino Foods’ use of a pre-employment test called WorkKeys to select hires for on-call laborer positions resulted in discrimination against African-American job applicants and applicants of Asian and Hispanic descent.
“I am pleased that we were able to reach a fair settlement in this matter,” said OFCCP Director Patricia Shiu. “While employers can and should hire the most qualified workers for the job, they cannot create artificial barriers to employment that unfairly block any individual from competing for good jobs.”
OFCCP determined that Leprino Foods violated Executive Order 11246, which prohibits federal contractors and subcontractors from discriminating on the bases of race, color, religion, sex and national origin in their employment practices. The agency made its findings after a scheduled compliance review in which OFCCP investigators conducted interviews, analyzed company data and reviewed documents provided by the company. Through this review, OFCCP discovered that the administration of the WorkKeys exam had an adverse impact on minority job applicants for these specific positions. The agency further determined that the exam was not job-related, as it tested applicants’ skills in mathematics, locating information and observation – skills that are not critical to the entry-level tasks performed by on-call laborers, such as inspecting products, monitoring equipment and maintaining sanitation at the facility.
Under the terms of the consent decree, Leprino will pay $550,000 in back wages, interest and benefits to 253 minority workers who were rejected for on-call laborer positions between January 2005 and October 2006 because they failed the WorkKeys exam. Additionally, the company has agreed to discontinue use of the test for this purpose, hire at least 13 of the original class members, undertake extensive self-monitoring measures and immediately correct any discriminatory practices.
Leprino Foods is one of the largest producers of mozzarella cheese in the world and is based in Denver, Colo. Since 2005, the company has received contracts totaling nearly $50 million from U.S. Department of Agriculture’s Farm Services Agency to provide mozzarella and other dairy products to the federal government.