DAIRY COMPANY RESOLVES SEX AND RACE DISCRIMINATION CHARGES

FROM:  U.S. JUSTICE DEPARTMENT 
New Jersey dairy company to pay nearly $325,000 to settle charges 
of sex and race discrimination affecting 227 job applicants

MOUNTAINSIDE, N.J. — The U.S. Department of Labor's Office of Federal Contract Compliance Programs today announced that federal contractor Cream-O-Land Dairy Inc. has resolved claims of sex and race discrimination affecting 227 workers who applied for jobs at the company's dairy plant in Florence, N.J. An OFCCP review of the facility determined that the dairy company used a hiring process that violated Executive Order 11246 because it discriminated against women, African Americans and Asian Americans who applied for warehouse positions in 2010.

"I am pleased that we were able to reach a fair settlement in this case," said OFCCP Director Patricia A. Shiu. "Today's agreement underscores the notion that federal contractors, like Cream-O-Land, should closely examine their employment policies and practices to identify and eliminate any unfair barriers to equal opportunity.

Under the terms of the conciliation agreement, Cream-O-Land will pay $324,288 in back wages, interest and benefits to the rejected applicants. The company will also make 24 job offers to the affected class members as positions become available. Additionally, the company has agreed to undertake extensive self-monitoring measures, including committing a minimum of $10,000 for training to ensure that all of its hiring processes comply with the law.

Cream-O-Land Dairy Inc. delivers dairy products to grocery stores, supermarkets and schools throughout New Jersey, New York, Pennsylvania, Delaware and Connecticut. In Fiscal Year 2012, Cream-O-Land sold more than $1.5 million worth of products to federal agencies such as the Federal Prison System, Department of Veterans Affairs, Defense Commissary Agency, Defense Logistics Agency and Department of the Army.

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, 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.