$295,000 Settlement in Hiring Discrimination Case Against Government Contractor

Monday, September 10, 2012

The U.S. Department of Labor's Office of Federal Contract Compliance Programs has reached an agreement with federal contractor Lund Boat Co., a wholly owned subsidiary of the Brunswick Corp., that settles allegations of hiring discrimination. In a consent judgment approved by the department's Office of Administrative Law Judges, Brunswick Corp. and Lund Boat Co. have agreed to pay $295,000 in back wages and interest to 185 female job applicants who were rejected for entry-level positions at Lund's boat manufacturing plant in New York Mills, Minn.

OFCCP investigators based in Chicago conducted a review of Lund Boat Co.'s New York Mills facility beginning in September 2007. Based on the findings, the agency determined Lund had failed to ensure that qualified female job applicants received equal consideration for employment without regard to their gender as required by Executive Order 11246. The department filed an administrative complaint with its Office of Administrative Law Judges on Nov. 30, 2011, alleging that Lund officials had systematically discriminated against female job applicants in 2006 and 2007.

In addition to the financial remedies, the agreement requires Brunswick Corp. and Lund Boat Co. to extend job offers to at least 27 women in the original class as general laborer positions open. Seven class members already have been hired. The companies also have agreed to maintain and retain required employment records, undertake extensive self-monitoring measures to ensure that all hiring practices fully comply with the law and submit detailed progress reports to OFCCP for the next two years.

Based in Lake Forest, Ill., Brunswick Corp. is a leading provider of marine, athletic and recreational products. Lund is part of the corporation's boat manufacturing division. In the past two years alone, Brunswick has held federal contracts worth more than $248 million with agencies including the U.S. Navy and the U.S. Coast Guard.

In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. These three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran. 

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