Government contractor will offer positions to 171 job applicants in hiring discrimination settlement

Company also agrees to pay African-American and female applicants $1.25M in back wages

Posted October 15, 2015

The U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) has found that a leading distributor of fastening products that is also a federal government contractor discriminated against 171 job applicants who sought general warehouse positions at two of its distribution facilities in Indianapolis and Atlanta.

During its investigation, OFCCP also found that the company destroyed or failed to provide various employment records from both facilities in an alleged attempt to hinder the investigation. Under the conciliation agreements with OFCCP, the company has committed to hire 154 African American and 17 female employees and will pay $1,253,611 in back wages and interest to the 7,398 African American and 1,055 female job applicants affected. The company did not admit liability. The violations occurred while the company received more than $35 million in government contracts for its products.

Investigators from OFCCP's Indianapolis and Atlanta offices found that the company engaged in screening and testing practices that discriminated against African Americans and women. As part of the settlement, the company has agreed to discontinue use of its written test and to revise its hiring and recordkeeping practices to ensure it fully complies with the laws and regulations that apply to federal contractors.

The Minnesota-based company produces threaded fasteners, such as bolts, nuts, screws, and washers used in manufactured products and building projects. It also sells a wide range of other industrial and commercial supplies. The company operates approximately 2,700 stores located primarily in North America with additional locations in Asia, Europe, Central and South America, and Africa. It also has 14 distribution centers in the U.S., Canada, and Mexico.

Employment Law TodayJ. J. Keller's Employment Law Today newsletter explains why you need to care, what you need to do and how your business could be affected by HR industry news.


J. J. Keller's FREE HRClicks™ email newsletter brings quick-read human resources-related news right to your email inbox.

Sign up to receive HRClicks™.