What You Need to Know about the OFCCP

Your Organization’s Obligations

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Presenter – John M. OtrobaSenior Consultant, TPO

John brings over 20 years of experience to his human resources consulting work at TPO. John has worked for government contractors, international businesses and commercial enterprises including Computer Science Corporation, Sperry Univac, Board of Governors – Federal Reserve and AMS, Inc. John has worked with small employers for the last decade where he uses his strong knowledge of employment law, including OFCCP requirements, to assist his clients with compliance and best practices.

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This presentation provides general information and updates regarding rights and obligations for federal contractors. These materials are not intended to provide legal advice.

Disclaimer

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Agenda

OFCCP MissionWho needs to be Compliant?What do I need to do?Enforcement ProceduresOFCCP Stance to Ensure ComplianceCompliance Review of ARRA ContractorsIncrease Focus on Veterans and Disabled IndividualsRecent Developments3 Take-a-waysQuestions & Answers

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OFCCP’s Mission

The Office of Federal Contract Compliance Programs (OFCCP) was set up to enforce, for the benefit of job seekers and wage earners, the contractual promise of affirmative action and equal employment opportunitiy required of those who do business with the Federal government.

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Any organization that has a contract or contracts in an amount exceeding $10,000.00 directly with the Federal government, or state, county, municipal or local governments that have adopted OFCCP guidelines, or sells product or provides services to a federal contractor.

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Who needs to be Compliant?

Who needs to be Compliant?

Any employer that is working as a main contractor or subcontractor on projects funded by the American Recovery and Reinvestment Act of 2009 The bottom line is that if your company or any part of your company that works with the government, you will be expected to be OFCCP compliant at all times

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Collection of personal data of your employees and potential hires. Employee self-identification (race, sex, veteran, and disability status) the collection and storage of this data. This data is used in the contract award process. A roster of employees is submitted to the government contracting officer as part of your bid.

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What do I need to do?

Offers technical assistance to federal contractors and subcontractors to help them understand the regulatory requirements and review processConducts compliance evaluations and compliant investigations of federal contractors and subcontractors personnel policies and procedures

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OFCCP’s Enforcement Procedures

Obtains Conciliation Agreements from contractors and subcontractors who are in violation of regulatory requirementsMonitors contractors and subcontractors progress in fulfilling the terms of their agreement through periodic compliance reports

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OFCCPEnforcement Procedures

Forms linkage agreements between contractors and Labor Department job training programs to help employers identify and recruit qualified workersRecommends enforcement actionsThe ultimate sanction for violations is disbarment – the loss of a company’s federal contracts

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OFCCPEnforcement Procedures

Current Administration has reshaped the OFCCPOFCCP now reports directly to Secretary of Labor33% increase in funding from FY 2009 to FY 2010

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OFCCP Aggressive Stance on Compliance

The additional $27.4 million in funding is being used to:

Develop a new case management systemHire 213 additional compliance officers Increase compliance evaluations and investigations

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OFCCP Aggressive Stance on Compliance

Good faith efforts in outreach and recruitment

Renewed focus on minorities and womenExpanded focus on veterans and disabled individuals

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OFCCP Renewed & Expanded Focus

Hiring disparitiesTracking applicant flow crucial

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Eliminating Systemic Discrimination

Investigating compensation disparitiesNo more “special” or “under the table deals”!

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Closely Monitoring Pay Practices

Subjects ALL ARRA (American Recovery and Re-Investment Act) funded contractors to pre-award clearance evaluations

Pre-award clearance evaluation of ARRA contractors and subcontractors not limited to those seeking contracts exceeding $10 million

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Compliance Review of ARRA Contractors

All contractors and subcontractors on a ARRA-funded projects are subject to a compliance review to include desk audit and on-site evaluation

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Compliance Review of ARRA Contractors

Corporate Compliance Letter RevisedLetter provides contractors an opportunity to prepare or review AAP’sbefore receiving notice from OFCCPinitiating a compliance review

Contractors able to address potential vulnerabilities in advance of a compliance reviewLetter could expose your organization to unlimited compliance reviews

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Compliance Reviews

OFCCP providing greater scrutinyRequest detailed information on the number of applicants referred by veteran and disabled recruitment sources and the number hiredOnus now on contractors to not only use veterans and disabled recruitment sources, but also to monitor the referrals and hires from those sources

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Increased Focus on Veterans & Disabled Individuals

Similar scrutiny regarding minorities and womenWorkplace accessibility for disabled individualsWorkplace accommodations

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Increased Focus on Veterans & Disabled Individuals

Avoiding violationsListing job openings

State and local employment serviceVeteran and disabled recruiting sourcesMinority and women recruiting sources

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Increased Focus on Veterans & Disabled Individuals

Increased Focus on Veterans & Disabled Individuals

Avoid violationsRecord referral source info for applications referred by recruitment sourceMonitor the number of applicants referred by those sources and the number hiredDocument affirmative action taken

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Increased Focus on Veterans & Disabled Individuals

OFCCP announced plans to develop affirmative action statistical analyses for covered veterans and disabled individuals similar to the statistical analyses for minorities and womenOFCCP seeking input regarding “good faith effort” practices

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OFCCP focus on applicants and new hires to determine if adverse impact exist by gender and race/ethnicity

Traditionally only focused on treatment of women and minoritiesExpanded focus now on all genders and races/ethnicitiesAdverse impact analysis – hires, promotions, compensation, and terminations

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Recent Developments

Tracking and Recording ApplicantsApplicant data collection processsInternet Applicant rulesUse of detailed disposition codesStorage and security of data

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Recent Developments

OFCCP focus on compensation data to determine if compensation disparities exist by gender and race/ethnicityExecutive Order 13496

Requires contractors to notify employees of their rights under the National Labor Relations Act

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Recent Developments

Either purchase a hiring software solution or create a manual system to track hiring dataPost all job opportunities with State Employment Commissions and Veteran and Disability recruiting sitesAvoid violations by self auditing your organizations

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3 Take-a-ways

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Questions & Answers