The Office of Federal Contract Compliance Programs (OFCCP), which enforces laws requiring certain federal contractors and subcontractors to prepare and maintain affirmative action programs, has launched a new program to give contractors advance warning that they’ve been targeted for a compliance audit.
Pinpoint Analysis
The OFCCP selects contractors for audit based on several factors, including how the company stacks up from a gender/race/ethnicity standpoint against similar companies in that industry and geographic area. The new system uses an outside research firm’s data analysis to more accurately rank contractors based on how likely they are to discriminate.
Opportunity to Correct Violations
The OFCCP plans to mail corporate scheduling announcement letters to 700 contractors flagged as possible violators in a pilot run of the program. The letter explains that the business was selected for a compliance audit and gives the contractor a chance to clean up its act before the audit is scheduled. They state that the OFCCP will give “serious consideration” to any remedial action a company voluntarily takes before the official review. Voluntary correction can reduce penalties for violations.
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Burden Minimized for Large Contractors
The new enforcement plan is also designed to lighten the burden on contractors with multiple compliance reviews scheduled at different locations, capping them at 25 reviews per contractor per year. The review process will also be staggered so companies aren’t dealing with multiple reviews at the same time.
Take Action Now
If you’re a federal contractor or subcontractor covered by the affirmative action rules, the smart practice is to audit your EEO practices internally now, before the OFCCP finds you. Even though you may have a chance to remedy violations after a warning letter is sent, it’s much better to avoid being targeted in the first place. Here are some steps to take:
- Periodically measure your EEO results against your goals.
- Monitor records of all personnel activity, including referrals, placements, transfers, promotions, terminations, and compensation at all levels.
- Require managers to periodically report on their efforts to meet EEO goals and review those efforts with all levels of management.
- Keep track of program effectiveness and encourage recommendations for improving unsatisfactory performance or results.
- Review all position descriptions to ensure qualifications don’t screen out a disproportionate number of minorities or women.
- Evaluate all company selection procedures to ensure they’re nondiscriminatory.