Katelyn Walker Mooney Acting Assistant Secretary for Policy | Official Website
The U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) has reached an agreement with McKesson Medical-Surgical Inc., a major distributor of medical supplies, to address allegations of systemic hiring discrimination at its Grapevine distribution center. The agreement follows a routine compliance evaluation by OFCCP, which suggested that the company's hiring practices may have discriminated against nearly 900 Black, Hispanic, and white applicants for associate material handler positions between September 24, 2019, and September 24, 2021.
The alleged discriminatory practices were found to be in violation of Executive Order 11246. This order prohibits federal contractors from engaging in employment discrimination based on race, color, religion, sex, sexual orientation, gender identity or national origin. According to OFCCP findings, the affected individuals included 472 Black applicants, 226 Hispanic applicants and 186 white applicants.
To resolve these allegations, McKesson Medical-Surgical has agreed to pay $448,578 in back wages and interest. Additionally, the company will extend job offers to 32 eligible candidates. The company also plans to revise its hiring procedures to prevent future discrimination and provide training for management involved in hiring decisions.
"Federal contractors must not engage in discriminatory hiring practices; it is the responsibility of the employer to ensure its selection practices comply with federal law," stated Ronald W. Sullivan II, Southwest and Rocky Mountain Regional Director for OFCCP in Dallas.
McKesson Medical-Surgical is a subsidiary of McKesson Corp., based in Irving. The parent company is a global healthcare services provider working with biopharma companies and various other sectors.
The OFCCP has initiated the Class Member Locator program aimed at identifying those affected by compliance evaluations or complaint investigations who might qualify for monetary relief or job placement consideration. Alongside Executive Order 11246 enforcement, OFCCP oversees Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974—all prohibiting employment discrimination by federal contractors.
