News Release
Federal contractor agrees to pay $402K in back wages, interest to resolve alleged hiring discrimination found in federal review
MIAMI – The U.S. Department of Labor has entered in a conciliation agreement with a global distributor of inventory solutions for aerospace original equipment manufacturers to resolve allegations of hiring discrimination affecting more than 100 Black and white job applicants at a Doral work site.
The agreement follows a routine compliance review by the department’s Office of Federal Contract Compliance Programs that found — from Aug. 23, 2016 to Aug. 23, 2018 — KLX Inc. allegedly discriminated against 113 Black and 16 white applicants for material handler I positions. The agency determined the actions violated Executive Order 11246, which forbids federal contractors from discriminating in employment.
To resolve the allegations, Boeing Distribution Services Inc. – which acquired KLX Inc. in October 2018 and did not own KLX Inc. during the timeframe reviewed – entered into an early resolution conciliation agreement in which the employer will pay $402,500 in back wages and interest to the affected job applicants; ensure its selection process, personnel practices and hiring policies are free from discrimination; and make certain its recordkeeping methods meet legal requirements. Boeing will also offer jobs to 11 Black and white affected applicants as positions become available.
“The U.S. Department of Labor is committed to resolving discrimination issues and ensuring equal opportunity,” said Office of Federal Contract Compliance Programs Southeast Regional Director Aida Collins in Atlanta.
Boeing Distribution Services Inc. is a global distributor of full-service inventory solutions for aerospace original equipment manufacturers and holds contracts for several federal agencies, including NASA and the U.S. Air Force.
OFCCP launched the Class Member Locator to identify applicants or workers who may be entitled to monetary relief and/or consideration for job placement as a result of OFCCP’s compliance evaluations and complaint investigations. If you think you may be a member of the affected class at Boeing Distribution Services Inc. during the investigative period, please use OFCCP’s Class Member Locator to learn more about these and other settlements.
In addition to EO 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, prohibit federal contractors and subcontractors from discrimination in employment because of disability or status as a protected veteran.
