U.S. Department of Labor Review Results in Federal Contractor Paying $171,300 in Back Wages to Settle Alleged Hiring Discrimination

SAN JOSE, CA – After a routine compliance evaluation by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), Mphasis Corp. – a technology services company and federal contractor based in San Jose, California – has agreed to pay $171,300 in lost wages to resolve allegations of discriminating against white applicants at its facility.

The routine compliance evaluation alleges that – between 2015 and 2017 – Mphasis Corp. discriminated against white applicants in favor of Asian applicants for computer systems analyst positions. OFCCP found that the company’s hiring practices violated Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, national origin or gender. The company does not admit liability.

“Federal contractors are required to provide equal employment opportunity to all applicants regardless of race and ethnicity,” said Office of Federal Contract Compliance Programs’ Regional Director Jane Suhr, in San Francisco.

In the settlement, Mphasis Corp. agrees to pay the back wages, extend job opportunities to 14 class members and take steps to ensure its personnel practices meet all legal requirements.

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, and may not retaliate against applicants or employees for engaging in protected activities. These laws also require that federal contractors provide equal employment opportunity through affirmative action. 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.