Bollinger, Shell settle discrimination lawsuits

The U.S. Department of Labor’s Office of Federal Contract Compliance Programs announced last week that Bollinger Shipyards Lockport LLC and Shell Exploration and Production Co. have both agreed to settle findings of hiring discrimination.

Under the terms of the conciliation agreement Bollinger Shipyards, headquartered in Lockport, will pay 134 minority applicants $90,000 in back pay and interest. Bollinger has also agreed to hire 42 minorities in the settlement.

This agreement settles the 2002 claim of Bollinger engaging in hiring discrimination practices against minorities.

“We strongly encourage other employers to take proactive steps to come into compliance with the law to prevent workplace discrimination,” said OFCCP Deputy Assistant Secretary Charles E. James Sr. in a news release.

While Bollinger Shipyards was being evaluated, investigators found that the company had administered tests for two positions that had an unfavorably impact on minority applicants.

“Contractors who utilize any testing procedure in their employment selection process, including written tests and skills, must ensure that the test is valid for the particular job if the test disproportionately screens out applicants from a protected group,” said Fred Azua Jr., regional director of the Southwest and Rocky Mountain Region of the OFCCP.

In a separate case, Shell Exploration and Production Co.’s New Orleans facility is settling similar findings from the OFCCP. Shell will pay 40 black applicants $50,000 in back pay and interest. The company will also hire people from the affected minority group.

It was found that Shell was also administering pre-employment tests that had an unfavorable impact on minorities.

According to the OFCCP, employers can lawfully administer tests as an applicant-screening tool if they are “neutral.” If the test proves to have an unfavorable impact on a minority the company must re-evaluate its test to ensure they are appropriate and necessary for the job they are searching to fill.

Both companies have agreed to re-evaluate their hiring practices and immediately correct any technique that may conducive to discrimination in the hiring process.

The OFCCP is an agency that enforces Executive Order 11246 and other laws that prohibit employment discrimination by federal contractors. The program monitors contractors to ensure they provide equal employment opportunities without regard to race, gender, color, religion, national origin, disability or veteran’s status.