Company Will Pay $100,000 for Alleged Discrimination in Hiring Process

Federal government contractor NCS Pearson, Inc., based in Iowa City, IA, has agreed to pay 100,000 dollars in back wages and interest as part of a settlement involving allegations of hiring discrimination. The agreement stems from an investigation initiated by the U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP).

The OFCCP held a scheduled compliance review and determined that, in 2009, NCS Pearson had utilized a hiring process that systematically discriminated against Asian job applicants at its Iowa City facility. The applicants were rejected for associate software developer positions. This action is a violation of the DOL’s Executive Order 11246. This order strictly forbids federal contractors and federally-assisted construction contractors and subcontractors who exceed 10,000 dollars in government business annually from discrimination regarding employment decisions based on race, color, religion, sex or national origin. Government contractors are likewise required to take affirmative action to certify that equal opportunity is available in every aspect of employment.

As per the terms of the conciliation agreement signed by the contractor and the OFCCP, NCS Pearson will pay back wages and interest to 67 Asian applicants who were affected by the discriminatory hiring procedure. The contractor will also offer associate software developer positions and retroactive seniority to at least four of the 67 Asian Americans as positions become available, as well as revise its policies and procedures for selecting candidates to guarantee equal employment opportunities for potential applicants.

“All workers deserve a fair shot to complete for and secure good jobs, and it is incumbent upon companies that do business with taxpayer dollars to make sure that the doors of opportunity are truly open to everyone,” said the OFCCP Director Patricia A. Shiu, a member of the federal Interagency Working Group on Asian Americans and Pacific Islanders. Shiu noted President Obama’s commitment to maintaining the civil rights for Asian American communities and expressed contentment that both parties “were able to work out a settlement which will provide financial relief and jobs for workers who were denied their fair shot.”

NCS Pearson is a wholly-owned subsidiary of the British company, Pearson PLC. It holds over 12 million dollars in federal contracts, funding which is used to conduct research and development for the U.S. Department of Education. The company supplies educational materials, electronic learning programs and test development, processing and scoring services for educational institutions and corporations from around the world.

In addition the Executive Order 11246, the OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. Each of these laws require businesses – both contractors and subcontractors – that work with the federal government to abide by a fair and reasonable standard and prevent employment discrimination on the basis of race, color, sex, national origin, disability or veteran status.