What You Need to Know about the OFCCP

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1 What You Need to Know about the OFCCP Your Organization s Obligations

2 Presenter John M. Otroba Senior 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.

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

4 Agenda OFCCP Mission Who needs to be Compliant? What do I need to do? Enforcement Procedures OFCCP Stance to Ensure Compliance Compliance Review of ARRA Contractors Increase Focus on Veterans and Disabled Individuals Recent Developments 3 Take-a-ways Questions & Answers

5 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.

6 Who needs to be Compliant? Any organization that has a contract or contracts in an amount exceeding $10, 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.

7 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

8 What do I need to do? 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.

9 OFCCP s Enforcement Procedures Offers technical assistance to federal contractors and subcontractors to help them understand the regulatory requirements and review process Conducts compliance evaluations and compliant investigations of federal contractors and subcontractors personnel policies and procedures

10 OFCCP Enforcement Procedures Obtains Conciliation Agreements from contractors and subcontractors who are in violation of regulatory requirements Monitors contractors and subcontractors progress in fulfilling the terms of their agreement through periodic compliance reports

11 OFCCP Enforcement Procedures Forms linkage agreements between contractors and Labor Department job training programs to help employers identify and recruit qualified workers Recommends enforcement actions The ultimate sanction for violations is disbarment the loss of a company s federal contracts

12 OFCCP Aggressive Stance on Compliance Current Administration has reshaped the OFCCP OFCCP now reports directly to Secretary of Labor 33% increase in funding from FY 2009 to FY 2010

13 OFCCP Aggressive Stance on Compliance The additional $27.4 million in funding is being used to: Develop a new case management system Hire 213 additional compliance officers Increase compliance evaluations and investigations

14 OFCCP Renewed & Expanded Focus Good faith efforts in outreach and recruitment Renewed focus on minorities and women Expanded focus on veterans and disabled individuals

15 Eliminating Systemic Discrimination Hiring disparities Tracking applicant flow crucial

16 Closely Monitoring Pay Practices Investigating compensation disparities No more special or under the table deals!

17 Compliance Review of ARRA Contractors 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

18 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

19 Compliance Reviews Corporate Compliance Letter Revised Letter provides contractors an opportunity to prepare or review AAP s before receiving notice from OFCCP initiating a compliance review Contractors able to address potential vulnerabilities in advance of a compliance review Letter could expose your organization to unlimited compliance reviews

20 Increased Focus on Veterans & Disabled Individuals OFCCP providing greater scrutiny Request detailed information on the number of applicants referred by veteran and disabled recruitment sources and the number hired Onus now on contractors to not only use veterans and disabled recruitment sources, but also to monitor the referrals and hires from those sources

21 Increased Focus on Veterans & Disabled Individuals Similar scrutiny regarding minorities and women Workplace accessibility for disabled individuals Workplace accommodations

22 Increased Focus on Veterans & Disabled Individuals Avoiding violations Listing job openings State and local employment service Veteran and disabled recruiting sources Minority and women recruiting sources

23 Increased Focus on Veterans & Disabled Individuals Avoid violations Record referral source info for applications referred by recruitment source Monitor the number of applicants referred by those sources and the number hired Document affirmative action taken

24 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 women OFCCP seeking input regarding good faith effort practices

25 Recent Developments 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 minorities Expanded focus now on all genders and races/ethnicities Adverse impact analysis hires, promotions, compensation, and terminations

26 Recent Developments Tracking and Recording Applicants Applicant data collection processs Internet Applicant rules Use of detailed disposition codes Storage and security of data

27 Recent Developments OFCCP focus on compensation data to determine if compensation disparities exist by gender and race/ethnicity Executive Order Requires contractors to notify employees of their rights under the National Labor Relations Act

28 3 Take-a-ways Either purchase a hiring software solution or create a manual system to track hiring data Post all job opportunities with State Employment Commissions and Veteran and Disability recruiting sites Avoid violations by self auditing your organizations

29 Questions & Answers