Arakelian Enterprises will pay $104K to resolve alleged hiring discrimination

SAN FRANCISCO – The U.S. Department of Labor announced that its Office of Federal Contract Compliance Programs has reached a conciliation agreement with a Southern California waste collection and recycling company to resolve alleged hiring discrimination against female job applicants cited in a review of the company’s federal contracts.

The agreement follows an OFCCP compliance review of Arakelian Enterprises Inc. that found, from July 1, 2017 to June 30, 2018, the company — operating as Athens Services — discriminated against female applicants for positions as operatives and laborers. 

OFCCP enforces Executive Order 11246 which prohibits federal contractors from discriminating in employment based on race, sex, color, religion, sexual orientation, gender identity or national origin.

To resolve the allegations, Arakelian Enterprises Inc. — operating as Athens Services — will pay $104,658 in back pay and interest to 54 unsuccessful applicants and extend 10 job opportunities to female applicants for open positions. The company must also review and revise its hiring process and provide enhanced training to managers to prevent future hiring discrimination. 

“Federal contractors and subcontractors must ensure that their employment policies and practices provide equal employment opportunity to all employees, regardless of sex,” explained Office of Federal Contract Compliance Programs Regional Director Jane Suhr in San Francisco. “The U.S. Department of Labor remains committed to holding companies with federal contracts accountable for ensuring equal employment opportunity.” 

Based in City of Industry, Arakelian Enterprises Inc. provides waste collection and recycling services, including automated collection, organic waste composting, storage box rentals and other related services. Since 2017, the company provides services to federal prisons under contract to the Department of Justice and Bureau of Prisons. Arakelian holds over $1.5 million in federal contracts.

Learn more about OFCCP. If you think you may be a member of the affected class during the investigative period, please visit the Class Member Locator. The agency offers 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. 

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.