The Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) has signed an Early Resolution Conciliation Agreement (ERCA) with State Street Corporation that includes an audit moratorium on the contractor’s establishments nationwide. Although ERCAs granting a multi-year moratorium on establishment audits were common during the previous administration, this is the first ERCA of which we are aware during the Biden Administration that includes a nationwide audit moratorium.
The State Street ERCA stems from an OFCCP audit of the contractor’s 2017-2018 compensation and practices at four facilities in Massachusetts. OFCCP alleged that a regression analysis revealed indicators of sex discrimination.
Under the ERCA, State Street has agreed to allocate at least $4.2 million to adjust compensation and remedy alleged pay disparities over three years. In return, OFCCP has granted State Street an audit moratorium on all its establishments nationwide until at least August 2028. Any leftover funds after the agreement expires will finance equal employment opportunity compliance and compensation programs and training.