The U.S. Department of Labor’s Office of Federal Contract Compliance Programs entered into a conciliation agreement with AstraZeneca to resolve alleged race and gender-based pay discrimination affecting 318 female and Hispanic employees working out of its North American commercial headquarters near Wilmington.
A routine federal compliance investigation found that – from Oct. 1, 2015 to Sept. 30, 2016 – AstraZeneca failed to comply with Executive Order 11246, which prohibits race and gender discrimination by federal contractors.
The government found that the federal contractor paid a base salary less than similarly situated employees to 23 Hispanic female employees in primary care sales representative level 3 positions and 295 female employees in specialty care sales representative level 4 positions.
Under the agreement, AstraZeneca agreed to pay $560,000 in back pay and interest to the 318 employees.
“The U.S. Department of Labor is committed to combating pay discrimination and ensuring fair compensation for all employees,” said OFCCP Acting Regional Director Michele Hodge, in Philadelphia. “Federal contractors are required by law to comply with all equal employment opportunity regulations.”
“We are prepared to proceed with enforcement to remedy systemic discrimination by contractors who refuse to come into compliance,” said Regional Solicitor Oscar L. Hampton III in Philadelphia. “Enforcement was not necessary in this case because the contractor has agreed to pay the required back pay plus interest and check for and remedy any current pay disparities. They also agreed to discontinue any discriminatory pay practices immediately, identify an individual responsible for future monitoring and enforcement, train all of its personnel involved in determining base salaries, and submit progress reports with compensation data for at least two years.”
AstraZeneca recently entered into a contract with the Department of the Army totaling approximately $1.2 billion to support coronavirus vaccine development.
Those who may be class member employed by AstraZeneca during the investigative period, can use OFCCP’s Class Member Locator to learn more about this and other settlements. Click here to learn more about OFCCP.
AstraZeneca employs 1,500 in Delaware.
