Lockheed Martin Corp. Agrees to Pay $700,000 to Resolve Alleged Hiring Discrimination Following U.S. Department of Labor Investigation

BETHESDA, MD – The U.S. Department of Labor and Lockheed Martin Corp.’s RMS Engineering & Technology Unit have entered into an Early Resolution Conciliation Agreement to resolve allegations of hiring discrimination found by the Department’s Office of Federal Contract Compliance Programs (OFCCP). While not admitting liability in the investigation, Lockheed Martin Corp. entered into an Early Resolution Conciliation Agreement and agreed to enhance future compliance proactively.

While denying OFCCP’s allegations, Lockheed Martin Corp. has agreed to pay $700,000 in back wages and interest to 616 affected Asian, African American and Hispanic applicants not hired for five different engineering positions. The federal contractor also agreed to hire 34 of the affected applicants.

The OFCCP compliance evaluation determined that from Jan. 1, 2017 through June 30, 2018, the employer discriminated against Asian, African American and Hispanic applicants for software engineer associate, systems engineer staff, member engineering staff, software engineer and systems engineer positions at several locations within the RMS Engineering & Technology Unit. OFCCP found the company’s action violated Executive Order 11246, which prohibits race-based discrimination in hiring by federal contractors.

“The Office of Federal Contract Compliance Programs’ Early Resolution Procedures 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. “These procedures help ensure prompt and broader relief for America’s workforce by allowing contractors to proactively correct violations and ensure future companywide compliance.”

“This agreement will prevent systemic hiring discrimination practices from recurring at Lockheed Martin’s RMS Engineering & Technology Unit. 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.

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.

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 (CML) to identify applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations 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 between Jan. 1, 2017 through June 30, 2018, please visit our website at http://www.dol.gov/ofccp/CML/index.htm, where you can also find information about other recent OFCCP settlements.