Labor & Employment Law — 10/8/09

Southside Bank agrees to $100,000 settlement of OFCCP hiring bias charges

Southside Bank, headquartered in Tyler, Texas, has entered into a consent decree that settles a lawsuit, brought by US Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), alleging that the bank discriminated against 232 rejected minority female applicants for the position of teller in 2002 and 2003. The lawsuit was filed with the Labor Department’s Office of Administrative Law Judges.

Under the terms of the consent decree and order, Southside Bank will pay a total of $100,000, in back pay and interest to 232 rejected minority female applicants, and will hire 12 of the minority female applicants into teller positions. The company has also agreed to undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law. In addition, Southside Bank will ensure compliance with Executive Order 11246 recordkeeping requirements.

“This administration is committed to ensuring that all Americans are hired, promoted and compensated fairly, without respect to their race, gender, ethnicity, disability, religion or veterans’ status,” said OFCCP’s acting Regional Director Melissa Speer of the Southwest and Rocky Mountain Region. “This settlement of $100,000 on behalf of more than 200 minority females should put all federal contractors on notice that the Labor Department is serious about eliminating systemic discrimination.”

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