U.S. Department of Labor and AT&T Reach Agreement To Resolve Compensation Disparities Involving Female Employees

SAN FRANCISCO, CA – The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) and AT&T Services Inc. entered into an agreement that requires AT&T to pay $173,000 and provide other non-monetary relief to address pay disparities between male and female employees in California and Nevada. While not admitting liability in the investigation, AT&T has agreed to an early resolution conciliation agreement and to enhance future compliance proactively.

During a routine compliance review, OFCCP found that, as of Feb. 1, 2019, AT&T paid 27 female employees who worked in manager network services positions less than their male counterparts. OFCCP contends that these disparities violated Executive Order 11246, which prohibits federal contractors from sex-based employment discrimination.

“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 efficiently,” said Office of Federal Contract Compliance Programs Director Craig E. Leen. “The cooperative resolution with AT&T is an exemplar of the continued success of OFCCP’s Early Resolution Procedures.”

“We acknowledge AT&T’s willingness to quickly address the issues identified by the Office of Federal Contract Compliance Programs through the Early Resolution Procedures, and for taking proactive efforts that will have a positive impact on the company’s workforce,” said Office of Federal Contract Compliance Programs Regional Director for the Pacific Region Jane Suhr, in San Francisco, California.

In addition to paying back wages and making salary adjustments, AT&T agreed to take proactive steps to ensure its compensation practices do not discriminate based on sex, race or ethnicity, disability or protected veteran status. AT&T agreed to conduct annual compensation analyses across its entire Technical Field Services-West workforce, making salary adjustments as necessary.

AT&T will also train, on an annual basis, human resources professionals and others responsible for compensation about their affirmative action obligations, pay transparency regulations, and the need to guard against implicit bias and stereotypes. AT&T will submit reports to OFCCP on these activities for the next three years.

In 2018, OFCCP launched an effort to resolve supply and service compliance evaluations at the earliest stage possible with corporate-wide compliance, and issued a directive establishing Early Resolution Procedures. These procedures allow OFCCP and contractors with multiple establishments to cooperatively implement corporate-wide compliance with OFCCP’s regulatory requirements and efficiently resolve issues. This early resolution conciliation agreement with AT&T resulted from the Early Resolution Procedures directive.

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.