|Summer Vacation For The OFCCP?
Nope. Just when we start to think about how much time we can spend at the beach, the water park or the farmer’s market, the Office of Federal Contract Compliance Programs (OFCCP) is busier than ever.
Here is the laundry list of things they have in the hopper:
- Rescission of 2006 Compensation Guidelines
- 2% or $2000 Trigger Test
- Expect to See
- Use of Active Case Enforcement (ACE) during compliance reviews
- Notice of Proposed Regulations for Individuals with Disabilities
- Notice of Proposed Regulations for Construction Contractors
- Update to Employment Resource Referral Directory
- Update to Federal Contract Compliance Manual (FCCM)
- Compensation Tool
- More Organizational Changes
- Midwest Regional Director & Midwest Regional Deputy Director leaving OFCCP
- Southeast Regional Director Evelyn Teague leaving OFCCP
- Continued departures and reorganizations
So we know what the OFCCP will be up to this summer and the rest of the year. What should federal contractors be doing to prepare? Get Proactive! Let’s start with the heart of an Affirmative Action Program, its Good Faith Efforts/Action-Oriented Programs. With the implementation of the new compliance review procedure Active Case Enforcement, OFCCP will be looking more in-depth at your EO 11246, VEVRAA and 503 AAPs including the success of your outreach programs. Validate that you can track the specific source of your candidates, verify your state/local employment office postings, evaluate the diversity of your applicant pools and make adjustments to your outreach programs as needed.
Based on the recent AstraZeneca case, the OFCCP’s statement about the case in the DOL blog, new 2%/$2000 trigger test and the proposed changes to the Scheduling Letter requesting more detailed and individual compensation at the outset of the desk audit, OFCCP is getting poised and ready to find and prosecute compensations discrimination cases. Which means you should be evaluating your compensation programs also. First rule when analyzing compensation, always involve legal counsel. The analysis should be done under attorney-client privilege in order to keep it confidential and non-discoverable. Second rule when conducting compensation analysis, if you find a problem fix it.
Good recordkeeping by federal contractors has long been one of the OFCCP’s biggest complaints. With the move to Active Case Enforcement and proposed additional requests in the scheduling letter, contractors will need increased vigilance in maintaining records. Now is a good time to start pulling files and evaluate documentation. Pull a certain percentage of your requisition files and evaluation for completeness – disposition codes, interview notes, application, required postings, etc. The same goes for your promotions. Ask yourself if OFCCP asked why this person was promoted over someone else, do you have the documentation to explain? Ditto for terminations. Ask yourself if you have consistently documented reasons and justifications for termination, can you identify voluntary vs. involuntary terminations, for reductions in force or layoffs did you have a set policy you followed that is documented?
Finally, now is the time to dust off those HR policies and procedures (specifically leave and accommodations) and make sure they are current and being enforced correctly and consistently. OFCCP in their proposed changes to the Scheduling Letter added these policies in the initial desk audit submission along with accommodation records.
Life’s a Beach and for those lucky contractors that receive a scheduling letter this summer a post card may be a close as you get.