US Department of Labor, Navient Corp. enter into agreement to resolve allegations of hiring discrimination

WILMINGTON, DE – The U.S. Department of Labor has entered into a conciliation agreement with Navient Corp. to resolve alleged hiring discrimination at three of its facilities in Indiana, Pennsylvania and Texas. The Wilmington-based Navient Corp.'s entities have several contracts with the federal government.

A compliance review by the department’s Office of Federal Contract Compliance Programs found that, from 2017 to 2021, Navient discriminated against 427 Black applicants for customer service positions in Fishers, Indiana, and Wilkes-Barre, Pennsylvania. In addition, the agency’s review identified alleged hiring discrimination against 1,858 Black and white applicants seeking clerical positions in Austin, Texas.

The employer’s actions violated Executive Order 11246, which prohibits federal contractors from discriminating in employment decisions based on race, color, religion, sex, sexual orientation, gender identity or national origin.

Navient Corp. has agreed to pay $700,000 in back wages and interest to resolve the allegations.

“The settlement with Navient Corp. reflects our commitment to preventing hiring discrimination and holding federal contractors accountable when they fail to meet the requirements of the law,” said Office of Federal Contract Compliance Programs Mid-Atlantic Regional Director Samuel B. Maiden in Philadelphia.

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. As amended, these laws 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. Learn more about OFCCP, or call OFCCP’s toll-free helpline at 800-397-6251.

If you think you or someone you know may be the applicants eligible for back pay or job opportunities from this settlement, please use the OFCCP Class Member Locator