Federal Contractor Agrees to Pay $72,000 in Back Wages to Settle Alleged Hiring Discrimination Found in U.S. Department of Labor Investigation

ROME, GA – Crothall Laundry Services Inc. has agreed to pay $72,000 in back wages after a routine compliance evaluation by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) found alleged systematic hiring discrimination violations at its Rome, Georgia, worksite.

OFCCP found that - beginning in 2013 - Crothall Laundry Services Inc. discriminated against 36 female applicants in the hiring and selection process for production positions. OFCCP also cited recordkeeping violations at the Rome facility, and found the company failed to make good-faith efforts to recruit African American employees. 

Crothall Laundry Services Inc. has agreed to pay the back wages and interest, as well as extend job offers to nine affected class members. To ensure future compliance, the company is obligated to evaluate and revise its hiring and selection policies; develop job-related qualification standards for production positions; and examine and improve its efforts to recruit qualified females and minorities.

“Federal contractors must ensure their pay practices do not discriminate,” said Office of Federal Contract Compliance Programs Southeast Regional Director Samuel B. Maiden, in Atlanta. “The U.S. Department of Labor remains committed to holding companies with federal contracts accountable in ensuring equal employment opportunity at their facilities.”

Crothall Laundry Services Inc. provides laundry and janitorial services for the U.S. Army and the U.S. Air Force. It is an operating division of Crothall Healthcare, based in Wayne, Pennsylvania.

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 the compensation of others subject to certain limitations. For more information, please call OFCCP's toll-free helpline at 800-397-6251 or visit https://www.dol.gov/ofccp/.