2013 HudsonMann Client Conference. October 15-16, 2013

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1 2013 HudsonMann Client Conference October 15-16, 2013

2 WELCOME!!!

3 Kickoff Agenda What s happening at HudsonMann OFCCP Enforcement Trends 2010 Census Compensation Guidelines New Regulations

4 o New reporting capabilities Upcoming HudsonMann Releases o Online Training Updates o 2010 Census

5 OFCCP Enforcement Trends HudsonMann Client Conference 2013

6 4,000+ OFCCP Audits conducted in FY 2012

7 $11 Million Recovered in back pay in FY 2012

8 30,000 Workers recompensed in FY 2012

9 35% Of financial remedies addressed compensation

10 OFCCP Enforcement Trends FY 2013 Compliance Evaluations: 4,000 Supply and service 100 Functional AAP 400 Construction

11 31% Of audits end with a Notice of Violation

12 Enforcement Forecast for FY ,200 supply and service compliance evaluations 450 construction contractor reviews enterprise-wide investigative process

13 OFCCP Budget for FY 2014 Requesting $108.5 Million 753 Full-time Equivalent Employees

14 Behind the Scenes at OFCCP New Federal Contract Compliance Manual (FCCM) Updating/Implementing Federal Contractor Compliance System (FCCS)

15 OFCCP Priorities for FY ) Narrow pay gap between men and women 2) Expand enforcement of rights of women and under-represented groups 3) Ensuring Affirmative Action for veterans and individuals with disabilities 4) Strengthen outreach and education efforts for workers and employers

16 o Required 1/1/ Census o We ll roll over the census data for you!

17 2000 v Census

18 Compensation: Directive 307 HudsonMann Client Conference 2013

19 Rescinded Current Guidelines Rescinded Compensation Standards and Voluntary Guidelines Thresholds are irrelevant Brought current practices into regulations

20 New Compensation Directive Allows for use of multiple analytical tools on case by case basis Preliminary analysis followed by request for employee level compensation data Defined remedies for compensation discrimination

21 Compensation Policy Best Practices Conduct Annual Pay Equity Analysis Ensure Job Titles and Job Descriptions are accurate and meaningful Know what factors influence pay per job title Correct unexplained discrepancies in pay Educate Managers Monitor new compensation directives

22 Compensation Audit Best Practices Review compensation data and internal equity analyses before submission Be prepared to provide detailed description and documentation of pay practices Request appropriate time to respond to compensation requests and get all correspondence in writing Provide ALL relevant compensation factors in submission not just those requested by OFCCP

23 New Regulations for Veterans and Individuals with Disabilities HudsonMann Client Conference 2013

24 March 24, 2014 Effective Date of New Regulations

25 Phased-in Compliance Of certain requirements

26 New Section 503 & VEVRAA Regulations 5 Subparts Each: A) Preliminary Matters, Equal Opportunity Clause B) Discrimination Prohibited C) Affirmative Action Program D) General Enforcement and Complaint Procedures E) Ancillary Matters Appendices

27 Phased-in Examples Affirmative Action Plan Year 1/1-12/31 No changes to written AAP until 1/1/2015 Affirmative Action Plan Year 4/1-3/31 Changes to AAP starting 4/1/2014

28 Phased-in Schedule March 24, 2014 Update EO Clause Non-discrimination obligations Start of AAP Year after 3/24/2014 Quantitative Analyses New-self ID forms AAP Narrative changes Etc

29 CFR Part Affirmative Action and Nondiscrimination obligations of federal contractors and subcontractors regarding disabled veterans, recently separated veterans, active duty wartime or campaign badge veterans, and armed forces service medal veterans Implements VEVRAA and JVA legislation Commonly called 4212 or VEVRAA regulations

30 New Veteran's Definitions Active duty wartime or campaign badge veteran served on active duty in US military, ground, naval or air service during a war or in a campaign or expedition for which a campaign badge has been authorized under DoD Armed Forces service medal veteran - served on active duty in US military, ground, naval or air service participated in a US military operation for which an Armed Forces service medal was awarded Disabled veteran veteran who is entitled to compensation under laws administered by VA or was discharged or released from active duty because of a service-connected disability Recently separated veteran any veteran during the three-year period beginning on the date of such veteran s discharge or release from active duty

31 Other New Definitions Pre-JVA veteran veteran who would be protected by Part 250 were it not rescinded, but who would not be protected under Part 300 Employment service delivery system (ESDS) replaces the term state workforce agency and state agency

32 New Requirements Evaluate veteran hiring across entire workforce (rather than by job group) Solicit protected veteran status at applicant stage Contractor has flexibility in self-id wording as long as some pre-set requirements are included Set hiring benchmark equal to national percentage of veterans or follow 5 step approach (failure to meet benchmark is not a violation of VEVRAA) Start recordkeeping for 3 years

33 New Requirements Annual data analyses: # openings # jobs filled # applicants # applicants who self-identified # applicants hired # protected veteran applicants hired

34 New Requirements Requires annual review of AAP by the designated official Requires annual assessment and documentation of outreach and recruitment efforts (3 years) Requires documentation of internal audit system to measure AAP effectiveness AAP, absent data metrics, made available in accessible method Specific, mandatory language of Equal Opportunity Clause in Purchase Orders Will be required to send written notification of AA policy to subcontractors

35 How HudsonMann Will Help! Applicant Self-ID form (protected veteran) Employee Self ID form (specific protected veteran categories) Applicant Flow Log (track veteran and disabled data) Employee data template (track veteran and disabled data) EEO Policy and Notice to Employees template Proprietary software tracking abilities

36 CFR Part Affirmative action and non-discrimination obligations of federal contractors and subcontractors regarding individuals with disabilities Implements Section 503 of the Rehabilitation Act Commonly called Section 503 regulations

37 Definition of Disability Conforms with ADA and ADAAA: with respect to an individual A physical or mental impairment that substantially limits one or more major life activities of such individual; A record of such impairment; or Being regarded as having such an impairment

38 New Requirements (not in Subpart C) Equal Opportunity Clause Reasonable accommodations extended to use of electronic or online job application systems Non-discrimination requirements

39 New Requirements (in Subpart C) Applicant Self-ID of disability at pre-offer stage New invitation to Self-ID still to come Resurvey employees every 5 years Visual Identification Create data analysis file Update EO/AA Policy Statement

40 New Requirements (in Subpart C) Ensure equal access to personnel processes with respect to IT systems Send written notice of AA policy and efforts to all subcontractors Expanded list of recruiting sources Annual self-assessment of outreach efforts Outreach records must be kept 3 years Include AA policy in policy manual and collective bargaining agreements

41 New Requirements (in Subpart C) Audit & reporting documentation must be retained for 2 years New Data Collection Requirements: # openings # jobs filled # applicants # applicants known to have disabilities # applicants hired # applicants with disabilities hired Must retain for 3 years

42 Utilization Goal 7% for employment of IWD s Contractors with more than 100 employees: Annual Utilization Analysis by Job Group Contractors with 100 Employees or fewer: Annual Utilization Analysis by total workforce

43 New Requirements (in Subpart C) Annual report describing activities in your AAP

44 OFCCP s Recommended Actions Not required, but suggested in the regulations Considering disabled applicants for jobs they didn t specifically apply to Additional internal dissemination practices Appendix B Developing Written Reasonable Accommodation Procedures

45 How HudsonMann Will Help! Applicant Self-ID form (from OFCCP) Employee Self ID form Applicant Flow Log (track disabled data) Employee data template (track disabled data) EEO Policy and Notice to Employees template Proprietary software tracking abilities Compliance Timeline Checklist

46 Still to come from OFCCP Self-ID form language Clarification of some issues

47 What hasn t changed Emphasis is on Good Faith Outreach Efforts!

48 Other requirements of interest (for both regulations) OFCCP may extend the scope of desk audit beyond scheduling letter if necessary Provide OFCCP access to on-site and offsite materials during audits

49 Questions??