MEDTRONIC WILL PAY BACK WAGES IN HISPANIC DISCRIMINATION LAWSUIT

FROM:  U.S. LABOR DEPARTMENT 

Medtronic to pay $290,000 in wage discrimination lawsuit settlement
78 Hispanic workers will receive back wages under agreement with US Labor Department

BOSTON — The U.S. Department of Labor's Office of Federal Contract Compliance Programs has resolved claims of pay discrimination affecting 78 Hispanic workers employed at the Medtronic Interventional Vascular Inc. manufacturing facility in Danvers, Mass.

In court filings, OFCCP alleged that Medtronic, a federal contractor, discriminated against 78 entry-level Hispanic senior production associates by paying them less than their white counterparts, in violation of Executive Order 11246. OFCCP also filed a consent decree memorializing the settlement with the Labor Department's Office of Administrative Law Judges after the company agreed to resolve the claims.

"Pay discrimination robs workers of the wages they deserve and takes from their families countless opportunities they might have had," said OFCCP Director Patricia A. Shiu. "Because pay discrimination is often hidden from workers, OFCCP's enforcement in this area is essential. I am pleased that we were able to work with Medtronic to finally resolve this case, provide compensation to the affected workers and fix the pay practices that led to this disparity in the first place."

Under the terms of the consent decree, Medtronic will pay the affected workers $290,000 in back wages and interest for pay disparities dating back to April 2008. Furthermore, the company will conduct training on its equal employment opportunity programs for all people involved in making decisions about compensation at the Danvers facility, and ensure that all of their pay practices fully comply with the law.

Medtronic Interventional Vascular Inc. is a wholly-owned subsidiary of Medtronic Inc., based in Minneapolis, Minn. In FY 2012, Medtronic Inc. was awarded more than $33 million in federal contracts to supply medical and surgical equipment as well as laboratory supplies to numerous government agencies, including hospitals associated with the U.S. Department of Veterans Affairs.

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 three laws require those who do business with the federal government, both contractors and subcontractors, to follow the fair and reasonable standard that they not discriminate in employment on the basis of sex, race, color, religion, national origin, disability or status as a protected veteran.