Archived News Release — Caution: Information may be out of date.

U.S. DEPARTMENT OF LABOR

ESA Press Release: Beverly Enterprises Ordered to Provide the Department of Labor Access to Corporate Headquarters [09/09/1999]

For more information call: (202) 693-4669

Beverly Enterprises, Inc., which runs approximately 700 nursing home facilities throughout the country, has been ordered by a federal administrative law judge to open its corporate headquarters for review by the Labor Department's Office of Federal Contract Compliance Programs or face being barred from federal contracting.

"This is an extremely important ruling that upholds our right to review a company's employment practices, including those affecting corporate executives," Secretary of Labor Alexis M. Herman said. "This is the only way we can be sure that companies doing business with the federal government are treating all their employees in accordance with the law."

Beverly provides nursing home care for veterans under a multi-million dollar contract with the Department of Veterans Affairs. As a federal contractor, Beverly is subject to affirmative action and equal employment opportunity requirements enforced by the Office of Federal Contract Compliance Programs.

OFCCP initially contacted Beverly headquarters at Ft. Smith, Ark., in September 1998 to schedule a compliance evaluation. In a corporate management review of the type proposed for Beverly, OFCCP generally examines salary and promotion practices in executive positions. Beverly refused to allow OFCCP compliance officers access to its premises and to its personnel data. Beverly claimed that it had been unfairly targeted for review and that its constitutional rights against illegal searches and seizures had been violated.

OFCCP filed suit in May with the Labor Department's Office of Administrative Law Judges. Administrative Law Judge Larry Price ruled July 23 that Beverly had no grounds for refusing access to its records and premises and that no constitutional rights were violated by OFCCP's selection process.

Beverly then filed exceptions with the department's Administrative Review Board which upheld Judge Price's ruling. The final decision, received by the parties on Sept. 3, gave Beverly 30 days to comply with OFCCP's request for access. If Beverly does not comply, it will face cancellation of current contracts and debarment from future contracts until it permits OFCCP to proceed with the review.

Archived News Release — Caution: Information may be out of date.