NEWARK, DE – The U.S. Department of Labor announced that its Office of Federal Contract Compliance Programs has entered into a conciliation agreement with Siemens Healthcare Diagnostics Inc. to resolve alleged pay discrimination against female employees at its manufacturing facility in Newark.
A routine OFCCP compliance review found that, beginning Jan. 1, 2020, the employer paid females in system engineer roles less than male counterparts in similar positions at the laboratory diagnostics manufacturing center. Such action violates Executive Order 11246, which prohibits federal contractors from discriminating in employment decisions based on race, color, religion, sex, sexual orientation, gender identity or national origin.
In addition to paying eight female system engineers $57,200 in back wages and interest, Siemens Healthcare Diagnostics made $24,821 in salary adjustments for three women. The company also agreed to review its compensation practices and policies and train managers to ensure future compliance.
“Our conciliation agreement with Siemens reflects the U.S. Department of Labor’s continued efforts to bridge gender wage gaps and hold federal contractors accountable when they fail to comply with the law,” said Office of Federal Contract Compliance Programs Regional Director Samuel B. Maiden in Philadelphia.
Siemens Healthcare Diagnostics Inc. is contracted by the National Institutes of Health and employs about 1,300 workers in Newark. Since 2020, the company has held at least $882 million in federal contracts with numerous federal agencies including the National Institute of Health and the Department of Defense.
Siemens Healthcare Diagnostics Inc. is a wholly owned subsidiary of Siemens Medical Solutions USA Inc. in Malvern, Pennsylvania. Siemens Medical Solutions USA Inc. is the holding company of Siemens Healthineers AG’s U.S., based in Germany.
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 laws, as amended, prohibit federal contractors and subcontractors from discrimination in employment because of disability or status as a protected veteran.
