UNITED STATES DEPARTMENT OF LABOR OFFICE OF ADMINISTRATIVE LAW JUDGES

OFFICE OF FEDERAL CONTRACT COMPLIANCE ) PROGRAMS, UNITED STATES DEPARTMENT ) OF LABOR, )

) Plaintiff, )

) v. ) Case No.

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PILGRIM'S PRIDE CORPORATION ) Defendant. ) "-

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ADMINISTRATIVE COMPLAINT

Plaintiff, Office of Federal Contract Compliance Programs, United States Department of

Labor, ("OFCCP"), by and through its attorneys, alleges as follows:

1. This action is brought by OFCCP to enforce the contractual obligations imposed

by Executive Order 11246 (30 Fed. Reg. 12319), as amended, ('"Executive Order 11246" or

"Executive Order") and its implementing regulations issued pursuant thereto, set forth at 41

C.F.R. Chapter 60.

2. Jurisdiction over this action exists under Sections 208 and 209 of the Executive

Order 11246, 41 C.F.R. 60-1.26 and 41 C.F.R. Part 60-30.

3. This Administrative Complaint arises from an OFCCP compliance evaluation of a

poultry processing plant located at 100 Pilgrim's Street, Mount Pleasant, Texas 75455. On or

about July 20, 2007, OFCCP scheduled the compliance evaluation.

4. Defendant Pilgrim's Pride Corporation owns and operates the poultry processing

plant in Mt. Pleasant, Texas.

Alll\llNISTRA TIVE COMPLAINT PAGE I OF8

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5. Defendant maintains its corporate headquarters at 1770 Promontory Circle,

Greeley, Colorado 80634.

6. At all times pertinent hereto, Defendant has been a Government contractor or

subcontractor within the meaning of Executive Order 11246 and is now, and at all pertinent

times has been, subject to the obligations imposed on Government contractors and

subcontractors by Executive Order 11246 and the implementing regulations issued thereunder.

7. The regulations issued pursuant to Executive Order 11246 provide at 41 C.F.R.

60-1.40 and 41 C.F.R. 60-2.l that each Government contractor with 50 or more employees and a

contract of $50,000 or more must develop and maintain a written affirmative action program for

each of its establishments in accordance with requirements set forth in 41 C.F.R. Part 60-2.

8. At all times pertinent hereto, Defendant has had 50 or more employees.

9. At all times pertinent hereto, Defendant has had a Government contract or

subcontract of $50,000 or more.

10. Pursuant to Section 202 of Executive Order 11246 and 41 C.F.R. 60-1.4,

Defendant agreed not to discriminate against any employee or applicant for employment because

of race, color, religion, sex, or national origin and agreed to take affinnative action to ensure that

applicants and employees are afforded employment opportunities without regard to their race,

color, religion, sex, or national origin. 1

11. At all times pertinent hereto, Defendant has been required to develop, maintain,

and implement a written affinnative action program for each of its establishments in accordance

with the requirements set forth in 41 C.F.R. Part 60-2.

1 After OFCCP began its investigation of Defendant's Mt. Pleasant, Texas, facility, Section 202 of Executive Order 11246 and 41 C.F.R. § 60-1.4 were amended to extend the anti-discrimination provisions and affirmative action obligations to include sexual orientation and gender identity. These amendments are not relevant to the issues in this case.

ADMINISTRATIVE COMPLAINT PAGE2 OF8

12. At all times pertinent hereto, Defendant has been required to preserve personnel

and employment records in accordance with the requirements of 4 I C.F.R. 60-1. l 2(a) and 41

CFR 60-3.

13. At all times pertinent hereto, Defendant has been required to conduct, maintain,

and have available adverse impact analyses on each race or national origin group constituting at

least two percent of the labor force in the relevant labor area or two percent of the applicable

workforce in accordance with the requirements of 41 C.F .R. 60-3 .15A.

14. At all times pertinent hereto, Defendant has been required to properly conduct

adverse impact analyses of the individual components of its selection process when the overall

selection process for semi-skilled manual labor and unskilled labor positions resulted in adverse

impact in accordance with the requirements of 41 C.F.R. 60-3.4C.

15. At all times pertinent hereto, Defendant has been required to perform in-depth

analyses of its total employment process to determine whether and where impediments to equal

employment opportunity exist in accordance with the requirements of 41 C.F.R. 60-2. l 7(b).

I 6. At all times pertinent hereto, Defendant has been required to validate the lifting

requirements for job positions in accordance with the requirements of 41 C.F.R. 60-3. I 4, 60-3 .15

and the Uniform Guidelines on Employee Selection Procedures.

17. At all times pertinent hereto, Defendant has been required to list all employment

openings with the appropriate employment delivery system in accordance with 41 C.F.R. 60-

300.5 and 41 C.F.R. 60-300.44(4)(f).

18. As a result of the compliance evaluation, OFCCP found that from at least July 20,

2005, to at least July 20, 2007, Defendant utilized hiring processes and selection procedures that

discriminated against black and white applicants for semi-skilled manual labor positions on the

AD~llNISTRA TIVE COMPLAINT PAGE30F8

basis of their race. Upon information and belief, OFCCP alleges that the discrimination may

continue to the present.

19. As a result of the compliance evaluation, OFCCP found that from at least July 20,

2005, to at least July 20, 2007, Defendant utilized hiring processes and selection procedures that

discriminated against white applicants for unskilled labor positions on the basis of their race.

Upon information and belief, OFCCP alleges that the discrimination may continue to the present.

20. As a result of the compliance evaluation, OFCCP found that from at least July 20,

2005, to at least July 20, 2007, Defendant utilized hiring processes and selection procedures that

discriminated against female applicants for unskilled labor positions on the basis of their sex.

Upon information and belief, OFCCP alleges that the discrimination may continue to the present.

21. As a result of the compliance evaluation, OFCCP found that from at least July 20,

2005, to at least July 20, 2007, Defendant failed to preserve and make available for inspection

complete and accurate records in accordance with the requirements of 41 C.F.R. 60-1.12(a) and

41 C.F.R. 60-3.

22. As a result of the compliance evaluation, OFCCP found that from at least July 20,

2005, to at least July 20, 2007, Defendant failed to properly conduct adverse impact analyses and

evaluate each individual component of the selection process in accordance with the requirements

of 41C.F.R.60-2.17(b), 60-3.4 and 41C.F.R.60-3.15A. Upon information and belief, OFCCP

alleges that this violation may continue to the present.

23. As a result of the compliance evaluation, OFCCP found that from at least July 20,

2005, to at least July 20, 2007, Defendant failed to validate the lifting requirements described in

the job descriptions for semi-skilled manual labor and unskilled labor positions in accordance

ADl\llNISTRATIVE COMPLAINT PAGE40F8

with the requirements of 41 C.F.R. 60-3.14 and 60-3.15. Upon information and belief, OFCCP

alleges that this violation may continue to the present.

24. As a result of the compliance evaluation, OFCCP found that from at least July 20,

2005 to at least July 20, 2007, Defendant failed to list all employment openings with the

appropriate employment service delivery system in accordance with the requirements of 41

C.F.R. 60-300.5 and 41 C.F.R. 60-300.44(4)(t). On information and belief, OFCCP alleges that

this violation may continue to the present.

25. The acts, failures to act, and practices described in paragraphs 18 through 24

above violate Executive Order 11246 and the regulations promulgated thereunder and violate the

contractual obligations of Defendant to the Federal Government.

26. All procedural requirements prior to the filing of this Complaint have been met.

OFCCP issued to Defendant a notice to show cause why enforcement proceedings should not be

initiated based upon OFCCP's finding of violations of Executive Order 11246 by Defendant and

has attempted to secure voluntary compliance through means of conciliation and persuasion.

Those efforts were unsuccessful.

WHEREFORE, Plaintiff prays for a recommended decision and order pursuant to 41

C.F.R. § 60-30, providing the following relief:

(1) An order permanently enjoining Defendant and its officers, agents, servants,

successors, divisions, and subsidiaries and those persons in active concert or

participation with them from violating the Executive Order;

(2) An order canceling all of Defendant's Government contracts and subcontracts and

those of its officers, agents, successors, divisions, subsidiaries, and those persons

in active concert or participation with them, declaring said persons and entities

ADMINISTRATIVE CO~IPLAINT PAGE50F8

ineligible for an extension or modification of any such existing Government

contract or subcontract;

(3) An order debarring Defendant and its officers, agents, servants, successors,

divisions, and subsidiaries and those persons in active concert or participation

with them from entering into future Government contracts and subcontracts until

such time thereafter as Defendant satisfies OFCCP that Defendant has undertaken

efforts to remedy its prior noncompliance and is currently in compliance with the

provisions of the Executive Order and the regulations promulgated thereunder;

and

(4) An order requiring Defendant to provide complete relief to the affected classes of

applicants to remedy all damages that resulted from Defendant's discriminatory

failure to hire the applicants, including but not limited to positions, lost wages,

interest, retroactive seniority, and all other benefits of employment.

Plaintiff further prays for such other relief as justice may require.

ADMINISTRA Tl\'[ COMPLAll'ff P;\GE 6 OF 8

U.S. Department of Labor Office of the Solicitor 525 S. Griffin Street, Suite 501 Dallas, Texas 75202 (972) 850-3100 (telephone) (972) 850-3101 (facsimile) Email: jackson.carlton@.dol.gov

ADMINISTRA Tl\'E COMPLAl1''T

Respectfully submitted,

M. PA TRICIA SMITH Solicitor of Labor

JAMES E. CULP Regional Solicitor

ROBERT C. BEAL

Trial Attorney

RICHARD M. MOYED Trial Attorney

Attorneys for Plaintiff.

PAGE70F8

CERTIFICATE OF SERVICE

This certifies that on May 17, 2016, the foregoing Administrative Complaint was served

upon Defendant PILGRIM'S PRIDE CORPORATION and its counsel of record, by certified

mail, postage prepaid, at the following addresses:

ADMINISTRATIVE COMPL\ll'IT

William W. Lovette President and Chief Executive Officer Pilgrim's Pride Corporation 1770 Promontory Circle Greeley, Colorado 80634

Christopher Gaddis Head of Human Resources JBS USA Holdings, Inc. 1770 Promontory Circle Greeley, Colorado 80634

John C. Fox Jay J. Wang Fox, Wang & Morgan P.C. 315 University A venue Los Gatos, CA 95030

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