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Friday, April 19, 2024

DEPARTMENT OF LABOR: Updated: U.S. Department of Labor and Cisco Systems Inc. Enter Agreement to Resolve Alleged Pay Discrimination in San Jose

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U.S. Department of Labor issued the following announcement on March 16.

Cisco Systems Inc. has agreed to pay $2,000,000 in lost wages and interest to affected employees in San Jose, California, and provide at least $2,750,000 in pay-equity adjustments to its employees nationwide in the next five years in an Early Resolution Conciliation Agreement (ERCA) after the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) claimed the company paid women, black and Hispanic employees less than comparable male and white employees in similar positions. The ERCA, which stems from an audit covering 2011-2013, also indicates that Cisco Systems Inc. does not admit liability and denies OFCCP's allegations.

Federal law prohibits workplace discrimination based on, among other categories, race, gender and national origin.

“This agreement ensures that employees from Cisco Systems Inc. are compensated fairly, and will prevent similar issues from happening again at any of its facilities,” said Office of Federal Contract Compliance Programs’ Regional Director Jane Suhr, in San Francisco, California.

“The Office of Federal Contract Compliance Programs is satisfied that Cisco Systems Inc. has pursued an early resolution conciliation agreement, and addressed compensation equity nationwide,” said Director of the Office of Federal Contract Compliance Programs Craig E. Leen. “OFCCP’s Early Resolution Procedures program helps ensure prompter and broader relief for America’s workforce by allowing contractors facing a potential violation to proactively correct such violations and analyze its pay practices over the next five years to ensure future companywide compliance.”

Original source can be found here.

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