Equal Pay Suit Jeopardizes VA Contract

One of the world’s largest pharmaceutical companies will pay $250,000 to 124 women who were subjected to pay discrimination while working at the company’s business center in Philadelphia. The action resolves a lawsuit filed by the U.S. Department of Labor claiming that the company discriminated against female sales specialists by paying them salaries that were, on average, $1,700 less than their male counterparts.

The department’s Office of Federal Contract Compliance Programs (OFCCP) conducted a scheduled compliance review of the center and found that the company had failed to meet its obligations as a federal contractor to ensure employees were paid fairly without regard to sex, race, color, religion, and national origin. The company holds a contract valued at more than $2 billion with the U.S. Department of Veteran Affairs to provide pharmaceutical products to hospitals and medical centers around the country.

In addition to making financial restitution, the company has agreed to work with OFCCP to conduct a statistical analysis of the base pay of 415 sales specialists (nationwide) in a number of states. If the analysis concludes that female employees continue to be underpaid, the company will adjust salaries accordingly.

Finally, the company will develop and annually update its affirmative action plan and keep all supporting documentation. If the company does not comply with the terms of the settlement, it will be subject to sanctions, including cancellation of its current federal contract and debarment from acquiring future ones.

For more information about OFCCP: www.dol.gov/ofccp.