The U.S. Department of Labor has reached a settlement with Designed Metal Connections, which operates as Permaswage. After an investigation conducted by the Office of Federal Contract Compliance Programs, the DOL discovered that the aircraft component manufacturer was paying female workers less than their male conuterparts at its Gardena, California, plant. The company violated Executive Order 11246, which prevents federal contractors form discriminating in employment. The investigation also uncovered Permaswage’s failure to make reasonabled accommodations when disabled employees made requests. The company will have to pay $122,000 in back wages and interest to the 63 affected female employees. The agreemet also requires Permaswage to review its reasonable accommodation policies and overall compensation system.
In a recent quote, Office of Federal Contract Compliance Programs Regional Director Jane Suhr said, “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. In addition to paying back wages and interest, federal law requires Permaswage to provide reasonable accommodation to employees with disabilities to prevent future discrimination.”