The U.S. Department of Labor has announced a conciliation agreement with Siemens Healthcare Diagnostics Inc. to address alleged gender pay discrimination at its Newark, Delaware facility. The Office of Federal Contract Compliance Programs (OFCCP) conducted a compliance review and found that, starting January 1, 2020, female system engineers were paid less than their male counterparts in similar roles at the laboratory diagnostics manufacturing center.

This practice was deemed a violation of 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 part of the agreement, Siemens Healthcare Diagnostics will pay $57,200 in back wages and interest to eight female system engineers and make salary adjustments totaling $24,821 for three women. Additionally, the company has committed to reviewing its compensation practices and policies and training 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," stated Samuel B. Maiden, Regional Director of the OFCCP in Philadelphia.

Siemens Healthcare Diagnostics Inc., contracted by the National Institutes of Health (NIH), employs approximately 1,300 workers in Newark. Since 2020, it has held at least $882 million in federal contracts with various agencies including NIH and the Department of Defense.

The company is a subsidiary of Siemens Medical Solutions USA Inc., based in Malvern, Pennsylvania. Siemens Medical Solutions USA Inc. serves as the holding company for Siemens Healthineers AG's U.S operations based in Germany.

In addition to enforcing Executive Order 11246, OFCCP oversees compliance with Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. These laws prohibit discrimination by federal contractors against individuals with disabilities or protected veteran status.