Siemens Healthcare Diagnostics Settles Gender Pay Gap Case with U.S. Labor Department

TL/DR –

The US Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has reached a conciliation agreement with Siemens Healthcare Diagnostics over alleged pay discrimination against female employees. A routine OFCCP review found that since January 1, 2020, female system engineers at the company’s Newark manufacturing facility received less pay than their male counterparts, a violation of Executive Order 11246. Siemens has agreed to pay $57,200 in back wages and interest to eight female employees, make $24,821 in salary adjustments for three women, and review its compensation practices and policies to ensure future compliance.

U.S. Department of Labor Resolves Pay Discrimination Case with Siemens Healthcare Diagnostics

The Office of Federal Contract Compliance Programs (OFCCP) of the U.S. Department of Labor has finalized a conciliation agreement with Siemens Healthcare Diagnostics to settle pay discrimination charges at their Newark production plant.

An OFCCP compliance assessment identified pay discrepancies dating back to January 1, 2020, where female system engineers were receiving lower compensation than their male colleagues. This action contravenes Executive Order 11246, prohibiting employment discrimination based on race, color, religion, sex, sexual orientation, gender identity or national origin by federal contractors.

Under the agreement, Siemens Healthcare Diagnostics will pay $57,200 in back wages and interest to eight female system engineers and adjust salaries for three women amounting to $24,821. The company will also review and adjust its compensation policies and offer training to ensure future compliance.

OFCCP Regional Director Samuel B. Maiden in Philadelphia stated, “Our conciliation agreement with Siemens exemplifies the U.S. Department of Labor’s ongoing mission to remedy gender wage gaps and enforce accountability when federal contractors fail to comply with the law.”

Siemens Healthcare Diagnostics, a subsidiary of Siemens Medical Solutions USA, holds contracts with the National Institutes of Health and employs around 1,300 employees in Newark. The company has managed over $882 million in federal contracts since 2020 with various federal institutions, including National Institute of Health and the Department of Defense.

Besides enforcing Executive Order 11246, OFCCP also implements Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, preventing federal contractors and subcontractors from employment discrimination due to disability or protected veteran status.

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