OFCCP Audit and Notice of Violation

The Office of Federal Contract Compliance Programs (OFCCP) alleged that a major U.S. manufacturer discriminated against female applicants at one of its largest manufacturing locations. The OFCCP claimed that the manufacturer hired women applicants at a lower rate than their availability in the workforce would suggest. The agency also alleged that women were disproportionately steered into certain less labor-intensive job positions. As part of the remedy, the OFCCP proposed a multi-million dollar settlement that included back pay and offers of jobs to the class of women who were allegedly denied jobs by the company. Econ One was retained by the major U.S. manufacturer to investigate and analyze the allegations made by the OFCCP. A team of economists and statisticians, lead by Dwight Steward, found that there was no statistical evidence to support the OFCCP claims of discrimination against female applicants. The statistical models and workforce surveys used by Econ One showed that the applicant flow was consistent with the local labor force and job preferences of the women at the company.