Federal Contractor Will Pay Female Employees Over $300K To Settle Wage Discrimination

Toni Sutton-Deangelica

St. Joseph, MO (WorkersCompensation.com)- A a global pharmaceutical company and federal contractor has agreed to pay $370,0899 in back wages and interest to 75 of its female employees to settle alleged wage discrimination violations at its St. Joseph, Missouri, facility. Boehringer Ingelheim Animal Health USA Inc., is a global leader in the animal health industry and is part of the family-owned Boehringer Ingelheim, founded in 1885.

According to a U.S. Department of Labor spokesperson, “Boehringer Ingelheim was scheduled for a compliance review on June 5, 2015, in accordance with the neutral Federal Contractor Selection System.” The review by the DOL’s Office of Federal Contract Compliance Programs (OFCCP), Boehringer Ingelheim Animal Health USA Inc. led to the payment decision.

“OFCCP’s analysis showed that since December 31, 2014, the contractor has paid female employees in the Production Sub area significantly less than male employees with similar jobs at the same location,” according to a notice sent to all affected class members. “OFCCP and contractor entered into an agreement to resolve the matter without resorting to further legal proceedings.”

In the Reconciliation Agreement between the DOL’s Office of Federal Contract Compliance Programs and Boehringer Ingelheim Animal Health USA Inc., obtained by WorkersCompensation.com includes the following part of the financial remedy handed down to the company:

  • Within fifteen (15) days after the Effective Date, Animal Health USA Inc. will deposit a total of $379,089.38 in an account maintained by Contractor by the deadline set forth in the timeline, and they will notify OFCCP when this action is complete and provide appropriate documentation, including the Settlement Fund which is a negotiated amount that represents estimated back pay and accrued interest. Contractor’s share of taxes on the portion representing back pay (such as federal, state, and/or local taxes and Federal Income Contributions Act (FICA)) is not part of the Settlement Fund. The company will be responsible for any banking account fees.
  • The back pay and interest amounts of the Settlement Fund will be distributed among the eligible individuals as explained in this Section. Individual shares will include appropriate deductions for each individual’s share of payroll deductions required by law on the portion representing back pay only, such as federal (FICA/Federal Unemployment Tax Act (FUTA)), state, or local insurance premiums or taxes.
  • Affected Individuals Eligible to Receive Payments. The Settlement Fund will be distributed to all Affected Individuals … who timely respond to the Notice Process as explained below, and whose eligibility is verified. These individuals will be listed on the initial list of eligible Individuals. The process of determining the Final List is explained below under Notice Process. OFCCP will determine the final amount for each Eligible Individual based on the formula or other terms provided in this Agreement. All Eligible Individuals are entitled to their share of the monetary settlement regardless of whether they are currently employed by Contractor.

Boehringer Ingelheim Animal Health USA Inc must follow these rules as stated in the modifications to employment practices and non-monetary:

  1. Equal Employment Opportunities. The company will ensure that all employees are afforded equal employment opportunities with respect to Contractor’s policies and practices that affect compensation. Contactor agrees to continue or to implement the corrective actions detailed below.
  2. Revise Policies and Procedures. The company must review and, as necessary, revise its compensation practices and establish monitoring and oversight mechanisms to ensure that all aspects of its compensation system provide an equal opportunity to all of its employees, regardless of gender, as required by 4I C.F.R. § 60- I.4(a). All revised practices must ensure nondiscrimination in rate of pay and other forms of compensation.
  3. Boehringer Ingelheim Animal Health USA Inc must provide training to all individuals involved in any way in determining compensation on any and all new and revised The company will ensure its managers properly maintain all records on the revised compensation policies and procedures, including any associated underlying data.

“The U.S. Department of Labor is committed to combating pay discrimination and ensuring fair compensation of all employees,” said Carmen Navarro, the Office of Federal Contract Compliance Programs Midwest Regional Director in Chicago, in a press release. “Boehringer Ingelheim Animal Health USA Inc. worked cooperatively with the Department to resolve these matters and to prevent similar issues from happening again.”

Boehringer Ingelheim Animal Health USA Inc. is a subsidiary of Boehringer Ingelheim International GmbH of Rhein, Germany. The company does not admit any liability and refutes OFCCP’s allegations.

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