U.S. Department of Labor Compliance Evaluation Results in Federal Contractor Paying $50,000 in Back Wages

WHITAKERS, NC – After a routine compliance evaluation by the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP), Consolidated Diesel Inc. – a federal contractor and subsidiary of Cummins Inc. – has agreed to pay $50,000 in back wages for alleged pay discrimination against African-American managers at the diesel engine manufacturing facility in Whitakers, North Carolina.

OFCCP alleged that – since at least 2013 – the company paid 11 African-American managers less than white managers in similar roles. Although the company did not admit liability, it will take steps to ensure its pay practices meet the legal requirements.

"Federal contractors and subcontractors must comply with all federal anti-discrimination laws," said OFCCP Southeast Regional Director Samuel Maiden.

Consolidated Diesel Inc. produces diesel engines, engine fuel systems, and engine components.

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/.