U.S. Department of Labor and Rolls-Royce North America Holdings Enter Agreement to Resolve Alleged Hiring Discrimination

PRINCE GEORGE, VA – The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) and Rolls-Royce North America Holdings Inc. have entered into an Early Resolution Conciliation Agreement to resolve allegations of hiring discrimination.

While denying OFCCP’s allegations, Rolls-Royce has agreed to pay $135,000 in back wages and interest to 26 female applicants not selected for machine operator positions at its manufacturing facility in Prince George, Virginia, and provide job opportunities to four of the affected female applicants.

The findings of OCFFP’s compliance evaluation show that from Jan. 1, 2017 to Dec. 31, 2017, Rolls-Royce discriminated against 26 female applicants who applied for a position as a CNC Machine Operator II-Turbine. OFCCP found the company’s action violated Executive Order 11246, which prohibits gender-based discrimination in hiring by federal contractors. Rolls-Royce also agreed to evaluate its process, policies, and procedures to hire individuals for similar skilled operator roles to ensure equal access and opportunity.

“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 in Washington, D.C.

“Companies that accept federal contracts must monitor their hiring processes to ensure applicants are not rejected based on unlawful practices,” said Office of Federal Contract Compliance Programs Regional Director Michele Hodge, in Philadelphia, Pennsylvania.

Headquartered in Reston, Virginia, Rolls-Royce North America Holdings Inc. provides management direction for all Rolls-Royce businesses and operations in the United States and Canada, and houses Rolls-Royce North America corporate support functions, including finance, human resources, legal, and government relations. The company holds federal contracts with government agencies including the Department of the Navy, Federal Aviation Administration, Department of the Air Force, U.S. Coast Guard, NASA and the Department of the Army.

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 during 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.