Kentucky-based health insurer Humana has agreed to pay $2.5 million to 753 women employees following allegations of pay discrimination by the U.S. Department of Labor.

Following a routine compliance check, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) determined that Humana had discriminated against 753 women at the company’s headquarters in Louisville. OFCCP asserted that in 2011-2012, Humana paid women in consulting, project manager, and manager positions less than similarly situated men. OFCCP determined that Humana’s actions violated Executive Order 11246, which makes it illegal for contractors and subcontractors doing business with the federal government to discriminate in employment because of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. 

“We are pleased that Humana has a commitment to equal employment opportunity and has worked cooperatively with the Department of Labor to resolve this matter,” said OFCCP Regional Director Samuel Maiden, in Atlanta. “Federal contractors and subcontractors must comply with all federal anti-discrimination laws.”

Humana issued a statement disagreeing with the finding, but has decided to make payments nonetheless in order to “avoid the cost and disruption of continuing to disagree with the agency….” Humana will also take steps to ensure that its pay practices going forward continue to meet federal pay requirements.

Entities that contract with the federal government should perform regular internal audits of their pay, hiring and firing, and other practices to ensure compliance with anti-discrimination laws and regulations. The Pharmacy and Health Law team at FisherBroyles offers complete compliance reviews for all types of healthcare entities across the U.S. Please contact any of the following attorneys for assistance.