LexisNexis Risk Solutions, a top tier leader in the risk management industry helping its customers accurately predict and manage risk, has agreed to a $1.2 million pay out in order to put to rest allegations of a pay bias made by the U.S. Department of Labor.
LexisNexis Risk Solutions, a top tier leader in the risk management industry helping its customers accurately predict and manage risk, has agreed to a $1.2 million pay out in order to put to rest allegations of a pay bias made by the U.S. Department of Labor. The company has also agreed to offer $45,000 in salary adjustments to women employed in Boca Raton, Florida.
Using state of the art technology and data analytic scoring, LexisNexis Risk Solutions aims to offer fraud prevention, background checks, public records, and identity management solutions to a large variety of businesses, including those in the retail, banking, healthcare and insurance, among others. Contracted as a third party by its clients, it is a top player in the risk management industry, servicing 99% of all U.S. automobile insurance claims and more than 90% of all homeowner insurance claims. The company also helps all 50 U.S. banks maintain regulatory compliance, limit business risk and prevent crime, as well as assists 70% of local government and nearly 80% of federal agencies in safeguarding U.S. citizens and reducing financial losses. Between 2015 and 2016, LexisNexis had substantial federal contracts, in the million dollar range, with the U.S. Departments of Justice, Transportation, Homeland Security, the General Services Administration and the Office of Personnel Management. The U.S. Department of labor also made the list as one of the well known agencies utilizing LexisNexis’ services.
After two unique investigations conducted by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs, however, it was discovered that LexisNexis Risk Solutions allegedly paid over 200 female managers in Florida and Georgia substantially less than males hired into the same role beginning as early as in 2012 and spanning several years. The investigation took into consideration legitimate factors that would explain pay differences. The pay discrepancy violates an executive government order specifically banning pay discrimination on the basis of sex. This stipulation stems from Executive Order 11246, and takes into account Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veteran’s Readjustment Assistance Act of 1974.
The full official statement released from LexisNexis states: “LexisNexis Risk Solutions is committed to ensuring all employees are treated fairly and afforded equal employment opportunities. The findings [by the Office of Federal Contract Compliance Programs] were not based on any individual complaints; rather they were derived from statistical analysis conducted by the agency. The company disagrees with the OFCCP’s findings and does not believe it violated any federal laws. After three and a half years of cooperation during the agency’s review, we ultimately agreed to the settlement to avoid committing additional time and resources for continued legal proceedings.”
In other words, LexisNexis has not admitted to the allegations and has stated instead that it intends to settle in order to avoid excessive costs and time associated with prolonging the case. The company has agreed to review and revise its pay policies as necessary, and will issue an annual compensation analysis during the conciliation agreement in order to account for any further salary discrepancies.