US Department of Labor sues Massachusetts technology contractor for discriminatory pay practices against female employees

BOSTON – The U.S. Department of Labor has filed a lawsuit with the department’s Office of Administrative Law Judges alleging a Massachusetts technology manufacturer engaged in discriminatory pay practices against female assembly workers at its Peabody headquarters.

A compliance review by the department’s Office of Federal Contract Compliance Programs found that Analogic Corporation’s compensation policies resulted in systemic discrimination against women employed in Assembler 2 and Assembler 3 positions, in violation of Executive Order 11246. Analogic paid female employees in those positions less than comparable males employed in those positions. The pay disparity remained after adjusting for differences in legitimate, pay-determining factors.

“Our investigation found that Analogic knew or should have known that its total compensation policies discriminated against female assemblers on the basis of gender,” said OFCCP Director Patricia A. Shiu. “Federal contractors must ensure taxpayer money never funds employment discrimination. Analogic’s failure is unacceptable, and our action today should serve to remind other federal contractors that we will aggressively pursue compensation discrimination cases.”

The suit also asks that Analogic be ordered to:

• Modify its compensation system to eliminate compensation disparities between males and females in the Assembler 2 and Assembler 3 positions.
• Provide back pay, interest, front pay, salary adjustments, fringe benefits, seniority and other benefits to the affected female workers.
• Train all employees involved in the company’s compensation process regarding its non-discrimination obligations as a federal contractor.
• Perform an in-depth analysis annually of its total employment process to determine whether and where impediments to equal employment opportunity exist.
• Develop an internal auditing and reporting system to measure the effectiveness of its affirmative action program.

In the event that – following a favorable ruling on its claims – Analogic fails to provide relief to the affected employees, the department is asking the court to cancel all of Analogic’s government contracts and to debar Analogic from receiving future government contracts until it satisfies the Secretary of Labor that its personnel and employment policies comply with Executive Order 11246.

Analogic designs and manufactures guidance, diagnostic imaging and threat detection technologies. The company holds contracts and performs work for such federal agencies as the National Institutes of Health, U.S Department of Veterans Affairs, Food and Drug Administration and Defense Health Agency. It has approximately 1,500 employees worldwide, including about 900 at the Peabody location.

The full complaint can be viewed here.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed or disclosed their compensation or that of others, subject to certain limitations. For more information, please call OFCCP’s toll-free helpline at 800-397-6251 or visit http://www.dol.gov/ofccp/.