The U.S. Department of Labor has announced a conciliation agreement with Abiomed Inc., a federal medical equipment supplier, to address allegations of gender-based promotion discrimination at its Danvers, Massachusetts headquarters. The Office of Federal Contract Compliance Programs (OFCCP) conducted a routine compliance evaluation covering June 1, 2017, to May 31, 2018. It found that Abiomed had discriminated against female employees by excluding them from the selection and promotion process for clinical educator positions.

The OFCCP determined that Abiomed's actions violated Executive Order 11246, which prohibits federal contractors from employment discrimination based on race, color, religion, sex, sexual orientation, gender identity or national origin. To resolve these allegations, Abiomed will pay $57,000 in back wages and interest to six female employees who were excluded from the promotion process due to a "tap-on-the-shoulder" method. This method involved not posting all openings for clinical educator positions and making selections without an open application process.

Abiomed has agreed to eliminate the alleged discriminatory practices and will now maintain procedures for applicant tracking and job postings for clinical educator roles. Additionally, the company will train those involved in recruiting and selecting applicants for these positions.

"Federal contractors must ensure their employment practices comply with federal laws," stated Diana Sen, Northeast Regional Director of the Office of Federal Contract Compliance Programs in New York. "Our compliance reviews look at all selection practices, including promotions, to safeguard equal employment opportunity in the workplace."

Abiomed holds contracts to provide medical and surgical instruments and supplies supporting U.S. veterans. Since 2019, it has secured over $46 million in federal contracts with the U.S. departments of Defense and Veteran Affairs.

In addition to Executive Order 11246 enforcement by OFCCP includes Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974—laws that collectively prohibit employment discrimination.