U.S. Department of Labor and Alsco Inc. Enter Agreement To Resolve Alleged Hiring Discrimination in Lanham, Maryland

LANHAM, MD – The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) and Alsco Inc. have entered into an Early Resolution Conciliation Agreement to resolve allegations of systematic hiring discrimination at its Lanham, Maryland, facility. Alsco Inc. has agreed to pay $75,000 in back pay and interest to the affected applicants, to extend 13 job opportunities to affected applicants who expressed an interest in them, and review its selection process at nine other establishments located in six states.

The preliminary findings of OFCCP’s routine compliance evaluation show that from Jan. 1, 2018, through Dec. 31, 2018, the linen and uniform rental, and facility services company discriminated against 43 African American applicants for entry and mid-level operative positions in violation of Executive Order 11246, which prohibits discriminatory hiring practices by federal contractors.

While not admitting liability, Alsco Inc. agreed to an Early Resolution Conciliation Agreement, and to enhance future compliance proactively.

"The Office of Federal Contract Compliance Programs’ Early Resolution Procedures are designed to enable federal contractors and the Department to work together to address and resolve issues of non-compliance efficiently,” said Office of Federal Contract Compliance Programs Director Craig E. Leen.

“This agreement will prevent hiring discrimination practices from happening again at any of Alsco Inc.’s facilities,” said Office of Federal Contract Compliance Programs Regional Director Michele Hodge, in Philadelphia, Pennsylvania. “We will work cooperatively with Alsco Inc. to ensure future compliance.”

Headquartered in Salt Lake City, Utah, Alsco North America has received federal contracts from 2017 through 2020. These contracts covered services and products to multiple federal agencies, including the U.S. Department of Agriculture; Defense Commissary Agency; Departments of the Air Force, Army and Navy; U.S. Drug Enforcement Administration; U.S. Forest Service; Indian Health Service; and National Oceanic and Atmospheric Administration.

In November 2018, OFCCP issued a directive establishing Early Resolution Procedures, launching an initiative to promote early and efficient resolution of supply and service compliance evaluations. These procedures allow OFCCP and contractors with multiple establishments to implement corporate-wide compliance cooperatively with OFCCP’s regulatory requirements, and resolve identified issues efficiently. In turn, contractors are exempt from future OFCCP evaluations for five years.

OFCCP enforces Executive Order 11246, 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 based on 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, 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 http://www.dol.gov/ofccp/.

OFCCP launched the Class Member Locator to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and who may be entitled to a portion of monetary relief and/or consideration for job placement. If you think you may be a class member who applied in 2018, the period of the investigation, please visit our website at http://www.dol.gov/ofccp/CML/index.htm, where you can also find information about other recent OFCCP settlements.

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.