California Company Will Pay More than $100,000 to Resolve Hiring Discrimination Case (a Good Lesson for Employers)

On June 4, 2024, the Department of Labor (DOL) confirmed that Arakelian Enterprises Inc.—a California-based waste collection and recycling company—will pay more than $100,000 to resolve a hiring discrimination case. The company, a federal contractor subjected to heightened standards, was sued for discriminating against female job applicants. Here, our California employment lawyer discusses the sanctions in this case and highlights the key lesson for employers.

 Federal and State Law Protects Job Applicants Against Hiring Discrimination 

Federal law and California law provide legal protections against hiring discrimination. These laws prohibit discrimination based on race, gender, age, disability, and other protected statuses, fostering a more equitable and inclusive workforce. Employers found in violation of these regulations may face serious legal penalties, including fines.

Federal Contractors Subject to Higher Standards: Executive Order 11246 

The employer, in this case, was a federal contractor. Federal contractors are held to higher standards in regard to workplace discrimination. Specifically, Executive Order 11246 holds federal contractors to heightened nondiscrimination standards, including in hiring and firing. The order requires contractors to take affirmative action to ensure equal employment opportunity in their hiring and employment practices. Compliance with this executive order is monitored by the Office of Federal Contract Compliance Programs (OFCCP). The agency  conducts proactive compliance reviews and can enforce penalties for non-compliance.

 DOL Enforcement: Employer Will Pay Back Wages 

Following a comprehensive investigation, the DOL has taken action against Arakelian Enterprises Inc. The OFCCP reached a conciliation agreement with the company—which does business as Athens Services—to address alleged hiring discrimination against women. The discrimination in question reportedly occurred between July of 2017 and June of 2018. The company is required to:

• Pay $104,658 to affected job applicants; and
• Provide 10 job offers to qualified female applicants.

Employers Must Proactively Ensure Fair, Legally-Compliant Hiring Practices 

Employers, especially federal and state contractors, in California should comply with all federal, state, and local labor regulations. Proactive compliance involves implementing strong, well-crafted policies for recruitment and hiring. Measures include:

• Regularly reviewing and updating job descriptions;
• Ensuring that requirements are relevant and non-discriminatory; and
• Training hiring managers to recognize and avoid biases during recruitment.

 It is imperative for employers to stay informed about changes in employment laws and regulations, as these can frequently evolve. An experienced California employment attorney can make the difference. Your lawyer can review your hiring practices to ensure you have legally compliant procedures in place. 

Get Help From an Employment Lawyer in Riverside County

At Sloat Law Group, our California employment lawyer has the legal knowledge that you can trust. If you have any questions about hiring discrimination practices, please contact us today. Our firm provides legal guidance and support to employers in Coachella Valley, Riverside County, and throughout the State of California.

 Source: 

dol.gov/newsroom/releases/ofccp/ofccp20240604