Slide 1

Report
Convincing Hiring Managers to Hire Affirmatively
April 19, 2011
Julia Méndez, CAAP, PHR, CELS
Director, Workforce Compliance & Diversity Solutions
Peopleclick Authoria Research Institute
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Today’s Agenda
Defining EEO, AA, Diversity
AA Statistics
Case For Hiring Affirmatively
Ways to Measure Success
Consequences of Not Hiring
Affirmatively
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Question
What are the differences among
Equal Employment Opportunity,
Affirmative Action and Diversity
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Equal Employment Opportunity (EEO)?
 Requirement under the Civil Rights Act of 1964
(Title VII) for employers with 15 or more
employees
 Protects individuals from discrimination based
on race, color, religion, national origin and
gender
 Other EEO laws protect against discrimination
due to age and disability
 Enforced by Equal Employment Opportunity
Commission (EEOC) and other various state
and local agencies
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Equal Employment Opportunity (EEO)
 Discrimination Practices
under Federal EEO Laws:
• Cannot discriminate in the following
practices:
o Recruiting, hiring and advancement
o Pre-employment inquiries
o Cannot harass or create a hostile work
environment due to protected class
o Compensation & other employment terms,
conditions and privileges
o Segregation and classification of employees
o Cannot retaliate due to a complaint of
discrimination being filed
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Required Posting – Revised 11/09
http://www.eeoc.gov/employers/upload/eeoc_self_print_poster.pdf
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What is Diversity?
 Individual differences and similarities based on:
• Age, ethnicity, gender, race, sexual orientation, religion,
work experience, education, family status, organizational
role/level, mental/physical abilities, first language,
geographic location, communication style, work style, or
status, etc.
• Company implemented and monitored
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What is Diversity?
 It is no longer a choice, but a business reality.
 It is valuing differences in people based on
their identification with various groups.
 It is a collective mix of both individual
similarities and differences in the workplace.
 It drives one to look beyond race and gender.
 It enables organizations to create an
atmosphere of full acceptance.
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Business Case for Diversity
 Diversity will be required of organizations to
remain competitive in the shifting marketplace.
 The ability for an organization to remain
competitive will be dependent upon its ability to
mold to the changing workplace.
 Embracing a culture of diversity helps to improve
financial results. . .it also strengthens a
company’s brand, unifies the corporate culture
and empowers stakeholders.
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Business Case for Diversity
 It’s all about that innovation that happens with a diverse
team of people…They bring in diverse cultures, skills
and talents to a team.
 Success requires a global perspective as well as
knowledge of other cultures.. .People want to see others
who look like them in their local businesses.
 Employees will work at companies where they feel
welcomed and valued.
 Diverse companies outperform companies that are not
because they have stronger teamwork and a greater
understanding of customers, partners and suppliers.
The Business Case for Diversity: How Companies Keep Their
Competitive Edge
By Tammy Worth
November, 2009
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What is Affirmative Action?
 Proactive action-oriented programs designed to
ensure equal opportunity of qualified women,
minorities, disabled individuals and veterans in
the employment process
 Enforced by the Office of Federal Contract
Compliance Programs (OFCCP)
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What is Affirmative Action?
 Designed to
• Promote equal employment opportunity
• Eliminate discrimination for protected members
• Create an opportunity to make a difference
• Remove barriers in the workplace
• Level playing field in every phase of the employment
process
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Exercise
Make your case to management for
recommending diversity initiatives to
strengthen your AAP and minimize EEO
complaints.
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Which Laws Are Enforced by the OFCCP?
 Executive Order 11246
(Race, Color, Religion, Gender, National Origin)
 Section 503 of the Rehabilitation Act of 1973
(Individuals with Disabilities)
 Section 4212 of the Vietnam Era Veterans’
Readjustment Assistance Act of 1974 (VEVRAA)
(Covered Veterans)
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EO 11246
 Prohibits discrimination based on race, color,
religion, gender, or national origin
 Requires companies to engage in
affirmative action for women and
minorities
 Requires companies to maintain data on
applicants, hires, promotions, transfers and
terminations by race and sex
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Section 503 of Rehabilitation Act of 1973
 Prohibits discrimination based on an individual’s
physical or mental disability
 If federal contract exceeds $10,000, requires
contractor to employ and advance in
employment qualified individuals with disabilities
 Requires companies to take affirmative
action to ensure individuals with disabilities
are included in all employment activities
 Requires companies to make reasonable
accommodation due to physical and mental
limitations
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Vietnam Veterans’ Readjustment Act
 Prohibits discriminations based on protected
veteran status
 If federal contract prior to 12/01/2003 exceeds
$25,000, (on or after 12/01/2003, $100,000)
requires contractor to employ and advance in
employment qualified covered veterans
 Requires companies to take affirmative
action to ensure covered veterans are
included in all employment activities
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Affirmative Action Reporting
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Difference Between Permissible Goals &
Unlawful Preferences
 Goals should NOT be interpreted as permitting
unlawful preferential treatment and quotas.
 Goals are neither quotas, set-asides, nor a device to
achieve proportional representation of equal results.
 Goals do not require that any jobs be filled by a
person of a particular gender, race, or ethnicity.
 Goals are not a ceiling or a floor for employment.
 The goal-setting process is used to target and
measure the effectiveness of AA efforts to eradicate
and prevent barriers to EEO.
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Placement Goals
Identifies goals based on
tests used to determine
underutilization
Goal Placement Rate
**NOT A QUOTA**
Only job groups with a
goal will appear
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Goal Attainment
Only job groups with a
goal last year will
appear on this report
Prior Year
Goals
Progress
Towards
Goal
Prior Year
Employees
If actual placement rate
is greater than
goal placement rate,
the goal has been met
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Impact Ratio Analysis - Hires
2 Standard
Deviations
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Question
How does your organization currently
measure effectiveness of recruiters with
respect to AA?
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Responsibility of Recruiters
 Separate all information
regarding
race/ethnicity/gender
from applications.
 Does applicant pool
mirror the available
qualified workforce?
 Are you using recruiting
sources that somehow
limit the gender and/or
race of potential
applicants?
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Responsibility of Recruiters
 Include an “applicant source” column in the
applicant log that indicates where each applicant
found a particular job posting.
 Take note of whether or not certain recruitment
efforts are yielding fewer (or no) qualified
candidates.
 Take note of recruiting sources that yield
qualified candidates with respect to covered
groups: Females, Minorities, Disabled, Veterans.
 Focus recruitment efforts accordingly.
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Responsibility of Recruiters
 Determine
whether money is
being spent wisely
with respect to
recruiting sources
that yield the most
effective results
 Assess whether
you are helping
the company
improve with
respect to goals
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Rating Performance of Recruiters
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Number of Recruitment Companies
Number of Recruits
Number that Passed Internet Applicant definition
Diversity percentages
Number hired
If recruiters are responsible for determining who
gets interviewed, who is an applicant, etc., audit
the disposition information for accuracy.
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Question
How does your organization currently hold
managers responsible for AAP success?
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Responsibilities of Management
 Be well versed on laws/regulations
regarding affirmative action and equal
opportunity.
 Be aware of issues within your own
department.
 Create a plan of action for making
progress with respect to goals or
deficiencies.
 Create an atmosphere free of
discrimination.
 Generate ideas to assist the company
in meeting relevant objectives.
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Types of Information You Should
Disseminate to Management
 Placement Goals
 Goal Attainment
Results
 Areas with Adverse
Impact
 Issues at
Departmental Levels
 Compensation Issues
 Problem Areas
 Narrative AAPs
 Training on EEO/AA
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Case for Hiring Affirmatively
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Reasons for Hiring Affirmatively
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It’s the law
Brings diversity into the workplace
Focus during today’s OFCCP audits
Competitive advantage
Reduces turnover
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Current OFCCP Focus
Patricia Shiu - OFCCP
• Adverse Impact Analysis
• Compensation Data
• Rescission of 2006
Compensation
Analysis Guidelines
• 2% or $2000 test
• Analysis of Good Faith
Efforts
• Training & documentation
of training
• Active Case Enforcement
– chance audit continues
beyond desk audit phase
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Requests in Recent Audits
 Proof of GFE for veterans
and persons with
disabilities
 Review of accessibility of
website if accept online
applications
 List of veterans and
persons with disabilities
hired in AAP year
 Copies of training
documents proving
managers trained on AA
obligations
 Accommodations made
for religion, veterans
status, disabilities and list
of names
 Details on hiring process
 List of protected
individuals who were not
promoted but considered
 List of individuals that
were out on maternity
leave
 List of terminations along
with reason
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VEVRAA Origin
 Title 38 of the U.S. Code, Section 4212, Vietnam
Era Veterans' Readjustment Assistance Act
(VEVRAA) of 1974 law requires that employers
with Federal contracts or subcontracts meeting
dollar threshold provide equal opportunity and
affirmative action for covered veterans.
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Outreach Requirement
 Note that OFCCP can request to view VETS-100
report in order to determine if contractor is
meeting AA obligations to recruit, retain, and
promote veterans
 Posting positions through State Employment
Office might be deemed insufficient if VETS-100
figures show no veterans or very small
percentage of covered veterans employed by
your company
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10 Reasons to Hire Veterans
1. Accelerated learning curve
2. Leadership
3. Teamwork
4. Diversity and inclusion in action
5. Respect for procedures
6. Efficient performance under pressure
7. Conscious of health and safety standards
8. Triumph over adversity
9. Technology and globalization
10. Integrity
Source: www.hirevetsfirst.gov
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Veteran Facts: Census Bureau 2009
 21.9 million - number of military veterans in the
U.S.
 1.5 million - number of female veterans
 2.3 million black veterans
 1.1 million Hispanic veterans
 258,000 Asian veterans
 153,000 American Indian or Alaska Native
 30,000 Native Hawaiian or Other Pacific Islander
 3 states with 1 million or more veterans: CA, FL,
TX
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Veterans Facts: Census Bureau 2009
 26% percent of veterans with at least a
bachelor’s degree
 $35,402 median income
 9.8 million 18-64 in the labor force
 5.5 million veterans with a disability
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American with Disabilities
 19% of U.S. resident reports some level of
disability in 2005
 54.4 million Americans are roughly equal to
populations of California and Florida
 46% of people age 21 to 64 with a disability
were employed
 Changes of having a disability increase with
age:
• 52% people 65 and older
• 71% people 80 and older
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Hiring Persons with Disabilities
 Skills – People with disabilities are just as skilled
as other applicants. Finding and keeping skilled
workers is essential for short-term moneymaking and long-term sustainability in the
market.
 Customers – People with disabilities come from
many walks of life and could acquaint your
company with a brand new customer base.
 Retention – Workers with disabilities have a
higher retention rate and are more loyal to their
companies than able-bodied employees. “Myths
about hiring people with disabilities”
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Hiring Persons with Disabilities
 These workers are loyal to their employers and
tend to reduce turnover.
 Workers with disabilities tend to boost customer
loyalty, cut worker’s compensation costs, and
provide financial incentives to their employers.
 92 percent of consumers surveyed felt more
favorable toward employers who hired workers
with disabilities.
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Hiring Persons with Disabilities
 Meet diversity recruiting and hiring goals.
 Promote your company’s commitment to a
diverse workforce and a positive work
environment.
 Save money and time by lowering your turnover
rate. Employees with disabilities statistically
have a higher rate of loyalty and longevity.
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Hiring Persons With Disabilities
 The federal government has developed a
program designed to encourage employers to
hire workers with disabilities. It is called the
Work Opportunity Tax Credit (WOTC). It has the
potential of reducing an employer’s federal tax
liability by as much as $2,400 per qualified
worker. An employer can take as much as 40
percent of the first $6,000 of wages paid during
the first 12 months of employment for each new
hire.
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Hiring Persons With Disabilities
 Additionally, the U.S. Social Security
Administration’s (SSA) Ticket to Work Program
(TTW) provides employers up to $4,800 in the
first nine months of employment when they hire
a Social Security beneficiary with disabilities.
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Accessibility Case
 Baltimore, Maryland (August
27, 2008): The National
Federation of the Blind (NFB)
and Target settled a class
action lawsuit
 $6 million fund established for
individuals in California to
claim up to $7000 each if they
tried to use Target.com and
encountered barriers
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Accessibility Cases
 September 26, 2008
 iTunes
 $250,000 contribution
 February 11, 2010
 Major League
Baseball’s official
Web site
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OFCCP Accessibility Watch List
Ability to Navigate
 Navigation link
 Use without a
mouse
 Use screen reader
Audio / Text
 Captions
 Text descriptions
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Reasonable
Accommodations
 Avoids triggers for
epileptic seizures
 Online forms
 Ability to request
additional help
Female Facts: Census Bureau 2010
 157.2 million women in the U.S. as of 10-1-10
 153.2 million males
 At 85 and older, there were more than twice as
many women as men
 $36,278 median annual earnings of women 15 or
older in 2009
 Women earn 77 cents for every $1 earned by men
 States with highest ratio of women-to-men
earnings: D.C., AZ, CA, NV, NY, FL NC, TX, MD
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Female Facts: Census Bureau 2010
 29.9 million women 25 or older with
a bachelor’s degree in 2009 (30%)
 28.7 million men had a bachelor’s
degree
 55% - percentage of college
students in fall 2008 were women
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Case for Hiring Females in Senior Roles
 Women traditionally make majority of healthcare
and nutrition relation decision within the family
 Women are a huge market for news and
entertainment
 Financial performance improves
 Provides balance by reflecting makeup of
employees
 Senior support for women in leadership roles is
a critical enabler of profit growth
Source: Sharing Best Practices to Boost Senior
Female Leadership by Melissa J. Anderson
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Case for Hiring Females in Senior Roles
 Women bring a different mindset and skill set
 Social chemistry changes in the boardroom
when women are introduced; everyone is more
thoughtful and considerate
 Women pose more critical questions
Source: Is 30 Per Cent Representation the New
Gender-Equality Dream? Paul Yeung/Reuters
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Quick Facts: 2009
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White persons not Hispanic
Black persons
American Indian and Alaska native
Asian
Native Hawaiian and Other PI
Persons of Hispanic or Latino origin
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65.1%
12.9%
1.0%
4.6%
.2%
15.8%
Diversity Facts
 Whites are now the minority in 46 of the nation’s
366 metro areas including New York, San Diego,
Las Vegas and Memphis
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Asian Facts: Census Bureau 2009
 16 million U.S. residents of Asian descent
 The second-fastest minority group
 Number of Asians in the U.S.:
•
•
•
•
•
•
Chinese descent – 3.8 million
Filipinos – 3.2 million
Asian Indians – 2. million
Vietnamese – 1.7 million
Koreans – 1.6 million
Japanese – 1.3 million
 Top states with largest Asian population:
• California – 5.2 million
• New York – 1.5 million
• Texas – 1 million
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Asian Facts: Census Bureau 2009
 $68,780 is the median household income
 For Asian Indians, the median income was
$90,429
 50% of Asians 25 and older had a bachelor’s
degree
 20% of Asians 25 and older had a graduate
degree
 80% of Asians live in a household with Internet
use; highest rate among race and ethnic
groups
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Pacific Facts: Census Bureau 2009
 1.1 million Native Hawaiian and Other Pacific
Islanders
 $53,455 median income of NH/OPI
 14% NH/OPI had a bachelor’s degree
 4% had a graduate or professional degree
 29.9 is the median age compared to 36.8 for the
population as a whole
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African American Facts: Census Bureau
2009
 41.8 million estimated black residents in U.S.
 65.7 million projected black population for 7-1-50
 18 states with an estimated black population of
at least 1 million: New York led the way
 23 states in which blacks were the largest
minority group
 19% percentage of blacks with bachelor’s
degree
 1.5 million blacks with advanced degrees
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American Indian and Alaska Native
 5 million estimated population
 29.7 median age
 5 – number of states with American Indian or
Alaska Natives were the largest minority group:
AL, MT, ND, OK, SD
 163,676 – number of American Indians and
Alaska Natives with graduate or professional
degree
 $37,348 median salary
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Hispanic Facts: Census Bureau 2009
 48.4 million Hispanic population (16%)
 More than 1 of every two people added to the
nation’s population between 71-08 to 7-1-09
 132.8 million projected Hispanic population on
July 1, 2050
 27.4 median age
 16 states with at least half-million Hispanic
residents: AZ, CA, CO, FL, GA, IL, MA, NV, NJ,
NM, NY, NC, PN, TX, VA, WA
 21 states in which Hispanics were largest
minority group
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Hispanic Facts: Census Bureau 2009
 35 million U.S. residents 5 and
older who spoke Spanish
 $37,913 median pay
 13% percent with bachelor’s
degree
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Older Americans: Census Bureau 2009
 39.6 million people 65 and older
 88.5 million – projected population of people 65
and older in 2050
 $31,354 median 2009 income of households
with householders 65 and older
 55% the percentage who worked full-time
among people 65 and older
 20% percentage of population 65 and older who
had a bachelor’s degree
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Older Americans: Census Bureau 2009
 74 men 65 and older for every 100 women in the
same age group
 5.6 million people 85 and older
 71,991 number of centenarians in US
 4.1 million living in California; 3.2 in Florida; 2.6
in New York
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Ways to Measure Success
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Company Structure
Overall Rollup
VP/Division
1
AAP 1
VP/Division
2
AAP 2
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AAP 3
Dashboard View of Compliant and
Management Level
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Audit Risk Dashboard: Areas of
Potential RiskPlans
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Measuring Effectiveness
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Measuring Effectiveness
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Measuring Effectiveness
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Prepare you Good Faith Effort
Submission
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Gap Analysis
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North American
Industrial Classification
System
Recruiting Area
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Consequences of Non-Compliance
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Equal Employment Opportunity
 What Remedies Are Available When
Discrimination Is Found?
•
•
•
•
•
•
Back pay
Hiring
Promotion
Reinstatement
Front pay
Reasonable accommodation or other actions that will make an
individual “whole”
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Equal Employment Opportunity
 Other remedies may include
payment of:
• Attorneys' fees
• Expert witness fees
• Court costs
 Compensatory and punitive
damages also may be available
where intentional discrimination is
found:
• Actual monetary losses, future monetary
losses, and mental anguish and
inconvenience
• Punitive damages may be available if an
employer acted with malice or reckless
indifference
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Discrimination Case – 7-27-10
 Area Temps Agrees to Pay $650,000 for
Profiling Applicants by Race, Sex, National
Origin and Age
 Temporary Agency Complied With
Discriminatory Placement Requests,
Fired Employees Who Opposed Unlawful
Practices, EEOC Alleged
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Top Cases in FY 2008
 A freight handling company in NC had to pay over $10
million for violations of recordkeeping, past performance
issues not resolved, recruitment, hiring and systemic
discrimination. The bulk of the remedies were paid to
minorities but females did get over $1 million.
 The other two major cases involved the same company,
one of the nation’s leading poultry company, (one
location in TN had to pay almost $5 million) and the
other location in NC had to pay almost $10 million. The
monies were paid out strictly to minorities. Issues
involving recordkeeping, past performance, recruitment,
hiring and systemic discrimination.
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Top Cases in FY 2009
 The top case in 2009 was almost $5 million in New
Jersey (a wholesale grocer), involved systemic
discrimination against females, issues with
selection/testing, hiring, and recordkeeping and support
data
 2nd largest case was in Arkansas (a baby food
company), over $2 million; systemic discrimination
against females and minorities, selection/testing, hiring,
recordkeeping and support data, and continuing issues
with past performance.
 The 3rd largest case was in California, almost $2 million
(a transportation company), systemic discrimination
against females, hiring, recordkeeping and support data
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Executive Order 11246 Violation
 Producers Rice Mill (Stuttgart, Arkansas – February
2008); $350,000.
 Discriminated against non Hispanics for laborer
positions and females for operatives positions in
hiring process.
 Failed to collect and maintain personnel and
employment records in accordance to regulations.
 Failed to provide records showing that it conducted
IRAs.
 Failed to list all employment openings with the
Arkansas Department of Workforce Services.
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Questions
Julia Mendez
800-538-3277 x 6110
[email protected]
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