Analogic in OFCCP’s Sights for Alleged Pay Bias

Daily Labor Report® is the objective resource the nation’s foremost labor and employment professionals read and rely on, providing reliable, analytical coverage of top labor and employment...

By Jay-Anne B. Casuga

Oct. 3 — Analogic Corp., a manufacturer of guidance, diagnostic imaging and threat detection technologies, engaged in pay discrimination against female assembly workers in Massachusetts, the Labor Department alleged in an administrative lawsuit ( OFCCP v. Analogic Corp., Dep't of Labor A.L.J., Docket Number Not Available, complaint announced 10/3/16 ).

The action is the DOL’s Office of Federal Contract Compliance Programs’ first administrative complaint filed in fiscal year 2017. Although the agency has made combating compensation discrimination a top enforcement initiative under the Obama administration, allegations of pay bias have been sparse in the few administrative complaints filed by the OFCCP each fiscal year.

For example, of the approximately eight administrative complaints filed by the OFCCP in fiscal 2016, only one included pay bias claims; that was against Potomac Abatement Inc., a construction subcontractor. The OFCCP has previously settled compensation discrimination claims following administrative action with AstraZeneca LP and Medtronic Inc.

In the OFCCP’s current complaint against Analogic, the agency alleged that it audited the company’s headquarters in Peabody, Mass., and found that female assembly workers were paid less than comparable male workers in those positions.

“The pay disparity remained after adjusting for differences in legitimate, pay-determining factors,” the DOL said. Generally, those factors can include such considerations as education and experience.

The OFCCP is seeking back pay and other relief for the affected female workers. It also wants Analogic to modify its compensation system to eliminate the alleged pay disparities.

If an administrative law judge rules against Analogic and the company doesn’t provide relief to the affected workers, the OFCCP said it will seek to cancel the company’s federal contracts and ban it from receiving future contracts.

The company has contracts with the National Institutes of Health, the Department of Veterans Affairs, the Food and Drug Administration and Defense Health Agency, according to the DOL.

Analogic representatives didn’t immediately respond to Bloomberg BNA’s request for comment.

To contact the reporter on this story: Jay-Anne B. Casuga in Washington at jcasuga@bna.com

To contact the editor responsible for this story: Peggy Aulino at maulino@bna.com

For More Information

The complaint is at http://src.bna.com/i7d.

Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.