Health insurance giant Humana has settled with the U.S. Labor Department’s federal contractor watchdog to the tune of $2.5 million. A routine audit unearthed allegedly discriminatory pay practices affecting 753 female employees at Humana’s Kentucky headquarters.
Three-fourths of Humana’s total premiums and service earnings in 2016 came through federal contracts, according to Bloomberg data. Humana’s 2016 revenue clocked in at $54.4 billion.
Humana’s alleged inequitable pay practices at its Louisville facility affected women working as consultants, project managers, and managers. The women were paid less than similarly situated male employees, the Labor Department’s Office of Federal Contract Compliance Programs, said. In addition to the settlement amount, Humana agreed to make pay adjustments and take steps to bring its pay practices into compliance.
Humana didn’t admit liability but agreed to the multimillion-dollar settlement.
Humana “worked cooperatively” with the OFCCP during the audit and settlement process, said Samuel Maiden, OFCCP’s Southeast Regional Director.
Humana didn’t immediately return Bloomberg Law’s request for comment.
The OFCCP annually audits 1 percent to 2 percent of about 200,000 federal contractor facilities. It uses data analysis to determine if a contractor-employer has run afoul of the three federal equal employment opportunity laws it enforces: Executive Order 11,246, Section 503 of the Rehabilitation Act, and Section 4212 of the Vietnam Era Veterans’ Readjustment Assistance Act.