US Department of Labor, Navient Corp. enter into agreement to resolve allegations of hiring discrimination

Summary:

The United States Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has entered into a conciliation agreement with Navient Corp., a student loan servicing company headquartered in Wilmington, Delaware, to resolve allegations of hiring discrimination at three of its facilities in Indiana, Pennsylvania, and Texas. The agreement aims to settle claims that Navient discriminated against 427 Black applicants for customer service positions in Fishers, Indiana, and Wilkes-Barre, Pennsylvania, from 2017 to 2021, and against 1,858 Black and white applicants seeking clerical positions in Austin, Texas, during the same period.

The alleged discrimination violated Executive Order 11246, which prohibits federal contractors from making employment decisions based on race, color, religion, sex, sexual orientation, gender identity, or national origin. As a result, Navient Corp. has agreed to pay $700,000 in back wages and interest to the affected employees.

The OFCCP regulatory framework is designed to prevent hiring discrimination and hold federal contractors accountable for complying with the law. The Office of Federal Contract Compliance Programs enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, among others. These laws make it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment based on race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran.

Individuals who believe they may be eligible for back pay or job opportunities from this settlement can use the OFCCP Class Member Locator or contact OFCCP’s toll-free helpline at 800-397-6251 for more information.