GARDENA (CNS) - Labor regulators have settled pay and disability discrimination allegations against a Gardena contractor that manufactures aircraft components for several federal agencies and the U.S. military, officials announced Wednesday.
The agreement with Designed Metal Connections -- operating as Permaswage -- follows an investigation by the U.S. Department of Labor's Office of Federal Contract Compliance Programs.
The allegations involved systemic pay discrimination affecting female employees and disability discrimination.
In its review, the compliance office found that since at least Jan. 1, 2018, the employer discriminated against 63 female employees by paying them significantly less than comparable male employees in the finishing job category, the Labor Department said.
Federal law prohibits contractors from discriminating in employment based on race, sex, color, religion, sexual orientation, gender identity or national origin.
In addition, the agency said it found that Permaswage failed to respond to employees who requested reasonable accommodations based on disability, in violation of federal law.
The agreement requires Permaswage to pay $122,000 in back wages and interest to the affected female workers and review its overall compensation system. It must also review its reasonable accommodation policies and provide enhanced training to its managers to ensure future compliance. The employer will also conduct annual compensation analyses and correct any unjustified pay disparity.
"Federal contractors must conduct annual pay equity audits and assess compensation systems to make sure compensation policies and practices do not lead to discrimination based on gender," OFCCP Regional Director Jane Suhr said. "In addition to paying back wages and interest, federal law requires Permaswage to provide reasonable accommodation to employees with disabilities to prevent future discrimination."
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