The U.S. Department of Labor has reached a settlement with A’viands Food & Service Management requiring the federal contractor to pay $399,000 in back pay and interest to 98 female employees to resolve pay discrimination violations found at its Roseville facility.

The settlement comes after a routine compliance evaluation by the department’s Office of Federal Contract Compliance Programs (OFCCP) determined that since at least Dec. 31, 2011 the company paid female employees working in food service director-exempt positions less than similarly situated male employees. 

Moreover, A’viands Food & Service Management has agreed to review employee compensation practices to determine whether those policies have a disproportionately negative effect on compensation for females and agreed to make adjustments to those policies as necessary. Other non-monetary forms of relief contained in the agreement include compensation monitoring and equal employment opportunity training.

“Federal contractors must ensure their pay practices do not discriminate,” said Acting Regional Director Carmen Navarro of the Office of Federal Contract Compliance Programs in Chicago.  “The U.S. Department of Labor remains committed to holding companies with federal contracts accountable in ensuring equal employment opportunity at their facilities.”

In addition to Executive Order 11246, signed by President Lyndon B. Johnson in 1965, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws, as amended, make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discriminating against applicants or employees because they have inquired about, discussed, or disclosed their compensation or the compensation of others subject to certain limitations.

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