UPDATED: U.S. Department of Labor and Cisco Systems Inc. Enter Agreement to Resolve Alleged Pay Discrimination in San Jose

SAN JOSE, CA – Cisco Systems Inc. has agreed to pay $2,000,000 in lost wages and interest to affected employees in San Jose, California, and provide at least $2,750,000 in pay-equity adjustments to its employees nationwide in the next five years in an Early Resolution Conciliation Agreement (ERCA) after the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) claimed the company paid women, black and Hispanic employees less than comparable male and white employees in similar positions. The ERCA, which stems from an audit covering 2011-2013, also indicates that Cisco Systems Inc. does not admit liability and denies OFCCP's allegations.

Federal law prohibits workplace discrimination based on, among other categories, race, gender and national origin. 

“This agreement ensures that employees from Cisco Systems Inc. are compensated fairly, and will prevent similar issues from happening again at any of its facilities,” said Office of Federal Contract Compliance Programs’ Regional Director Jane Suhr, in San Francisco, California. 

“The Office of Federal Contract Compliance Programs is satisfied that Cisco Systems Inc. has pursued an early resolution conciliation agreement, and addressed compensation equity nationwide,” said Director of the Office of Federal Contract Compliance Programs Craig E. Leen. “OFCCP’s Early Resolution Procedures program helps ensure prompter and broader relief for America’s workforce by allowing contractors facing a potential violation to proactively correct such violations and analyze its pay practices over the next five years to ensure future companywide compliance.”

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/.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.