10/15/2014. October 15, 2014 Ahmed Younies President/CEO, HR Unlimited

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1 October 15, 2014 Ahmed Younies President/CEO, HR Unlimited

2 Preliminary Statement THIS PRESENTATION WAS PREPARED BY THE CONSULTING FIRM HR UNLIMITED, INC. FOR THE ATTENDEES OWN REFERENCE IN CONNECTION WITH EDUCATION SEMINARS PRESENTED BY THE AFOREMENTIONED FIRM. ATTENDEES SHOULD CONSULT WITH THEIR COUNSEL BEFORE TAKING ANY ACTIONS AND SHOULD NOT CONSIDER THESE MATERIALS OR DISCUSSIONS THEREABOUT TO BE LEGAL OR OTHER ADVICE.

3 Workshop Hosted By HR Unlimited HR Services for Affirmative Action Programs, Training and Compensation Subject Matter Experts for EE/AAP Legal Counsels, Statisticians, Compensation Consultants, and Performance Management Diverse clients from Fortune 500 to SMB nationwide 12 years in Business Services Mission is to provide superior, client focused, cost effective specialized Human Resources solutions

4 Nationwide Clients

5 Agenda Background Violations Statistics Selected for a Construction Compliance Review? What to expect? Most Common Violations Cost of Audits & Non-Compliance Q&A

6 Background

7 FY # of Audits/Industry

8 FY # of Violations/Industry

9 1000 FY Construction Industry Violations Recruitment Past Performance Record Keeping Or Support Other Written AAP Hiring Salary Accomodation Promotion Systemic Discrimination Selection Or Testing Terminations Medical Screening

10 90% 80% 85% FY2008 % Viols/Evals. Perennial Poor Performer 70% 60% 50% 40% 30% 20% 40% 38% 33% 33% 31% 30% 28% 28% 24% 23% 20% 20% 20% 18% 16% 16% 14% 10% 0% 4% 0%

11 Perennial Poor Performer 120% 107% FY2012 % Viols/Evals 100% 94% 89% 87% 83% 80% 60% 64% 64% 62% 60% 60% 60% 60% 56% 56% 54% 48% 48% 40% 36% 30% 20% 9% 0%

12 Perennial Poor Performer 100% 90% 92% FY '08-'12 %Viols/Evals 80% 70% 63% 60% 58% 50% 40% 30% 50% 48% 47% 47% 46% 42% 39% 35% 31% 30% 30% 27% 26% 26% 25% 25% 20% 14% 10% 0%

13 Construction s Worst Offenses FY08-12 Construction %Violations/Evaluations 35% 30% 25% 30% 24% Over this period, nearly 1/3 rd of audits yielded a recruitment violation. 20% 17% 15% 11% 10% 5% 5% 0% 1% 1% 1% 0% 0% 0% 0% 0%

14 Selected for a Construction Compliance Review? What to expect?

15 How are construction contractors selected for a compliance review? What happens during a construction compliance review? Document review Interviews Inspection (posters, accessibility for IWDs, etc.) How long do they last?

16 What to Expect from A Scheduling Letter?

17 Provided along with this letter is an attachment, Attachment A: Sample Onsite Documents, which is a non-exhaustive list of some of the documents OFCCP could request during the onsite portion of the compliance evaluation.

18 What to Expect from A Scheduling Letter? Cont.- 1. Hours worked: Original payroll records for the specified review period. a) Payroll records that identify the total hours worked by each trade in the geographic area, either the Standard Metropolitan Statistical Area (SMSA) or the Economic Area (EA), and include the gender, race, and ethnic designation of each employee. b) Payroll records that identify the overtime hours worked by each trade in the geographic areas described above and include the gender, race, and ethnic designation of each employee.

19 What to Expect from A Scheduling Letter? Cont.- Month, Year Total Hours Female Hours Black Hours Hispanic Hours Asian/Pacific Islanders Hours Native American Hours October,

20 What to Expect from A Scheduling Letter? Cont.- 2. Contracts: a) A list of all construction projects (federal, nonfederal, and federally assisted) by name and location in the applicable geographic area during the specified review period, including identifying whether each project is commercial or residential. b) For each federally funded project, OFCCP may seek additional information such as: I. The funding agency, II. Amount of contract, III. Date of award, IV. Date construction started, V. Percent completed, and VI. The estimated completion date.

21 What to Expect from A Scheduling Letter? Cont.- 3. Subcontracts: a) A list of subcontracts in excess of $10,000 for federal and federally assisted contracts for the review period. b) Notifications sent to OFCCP of subcontract awards of more than $10,000. c) Records of equal employment opportunity notices to your subcontractors and/or vendors regarding EEO responsibilities/obligations, monthly reporting, etc.

22 What to Expect from A Scheduling Letter? Cont.- 4. Community Outreach Records: a) Communications with unions and (CBOs)regarding the company's EEO obligations and recruitment efforts to hire women, minorities, and individuals with disabilities if the company is subject to Section 503, and protected veterans if the company is subject to VEVRAA.

23 What to Expect from A Scheduling Letter? Cont.- 5. Union & Trade Organization Affiliations Referrals: A list of all unions & Trade Organization Affiliations referring workers for the company's construction contracts, including a copy of any applicable collective bargaining agreements. 6. Contractor Referrals: Copies of letters notifying unions and community based organizations of your obligations as a Federal contractor and requesting their assistance in referring minorities and females for vacancies as they become available at your construction sites. 7. Referred Individuals: A list of all individuals referred by you to a union, and a list of all individuals referred by a union to you, during the review period. 8. Non-Referred Individuals: List each person that you referred to a union (s), but not referred back to you, and the reason for non-referral.

24 What to Expect from A Scheduling Letter? Cont.- 9. EEO Policy Statement 10.EE0-1 Reports: Records of EEO-1 reports for the last two years.(41 CFR )

25 What to Expect from A Scheduling Letter? Cont.- 11.Employee Roster: A current employee roster by name, job title, date of hire, race or ethnicity, sex, salary, date in position, and geographical location to which the employee is assigned, sorted by job title if possible. 12.Job Postings: A copy of all job postings during the review period. 13.Applicants Flow Log: A list of applicants by name, position applied for, sex, race or ethnicity, and date of application 14.Applications and Resumes: All applications and/or resumes for the review periods

26 What to Expect from A Scheduling Letter? Cont.- 15.New Hires: A list of hires, by name, job title, sex, race or ethnicity, and date of hire for the review period 16.Promotions: A list of promotions by name, sex, race or ethnicity, position promoted from and to, salary of position promoted from and to; and date of promotion, for the review period 17.Terminations: A list of terminations by name job title, sex, race or ethnicity, date of termination, and reason for termination for the compliance period (s)

27 What to Expect from A Scheduling Letter? Cont.- 18.Leaves and Accommodations: A list of all individuals who requested and/or were granted maternity, disability, or medical accommodations; including time off, by name, job title, date of hire, sex, race or ethnicity, beginning date, expected completion or return date (if time oft), and actual return date (as applicable) for the review period (s) AA Standards: Documents demonstrating how the company implements each of the specific affirmative action standards pursuant to 41 CFR (a) 7(a-p).

28 The 16 Affirmative Action Standards: 1 Work Environment 2 Recruitment Practices 3 Maintaining Records 4 EEO Obligations 5 Training Programs 6 Internal Dissemination 7 EEO Policy Reviews 8 External Dissemination 9 Recruitment Sourcing 10 Minority & Female Encouragement 11 Identifying Adverse Impacts 12 Promotional Opportunities 13 Personnel Practices 14 Non-Segregation 15 Solicitations 16 Supervisors & Managers

29 What to Expect from A Scheduling Letter? Cont Written affirmative action programs for individuals with disabilities and protected veterans, if the company is subject to Section 503 and VEVRAA 21.Copies of purchase orders

30 Sample of Common Violations Violation #1 RECRUITMENT PRACTICES XYZ failed to make good faith efforts to recruit qualified female workers for the months of January 1, 2010 through December 31, 2010 to reach its goals for female carpenters, laborers and operators, when opportunities were available, as established by 41 CFR-4.2(d)(2). XYZ also failed to make good faith efforts to recruit qualified minority workers for the months of January 1, 2010 through December 31, 2010 to reach its goals for minority carpenters and operators, when opportunities were available, as established by 41 CFR (d)(2). Specifically, XYZ failed to implement the following actions: The contractor failed to provide evidence that they maintained a current list of minority and female s recruitment sources, provided written notification to these recruitment sources and to community organizations when it had opportunities available, or maintained a record of the organizations responses, as required by 41 CFR (a) 7.b. XYZ failed to direct recruitment efforts, both oral and written, to minority and female community organizations, to schools with minority and female students and to minority and female recruitment and training organizations serving the contractor s recruitment area and employment needs, as required by 41 CFR (a) 7.i.

31 Sample of Common Violations Violation #2 RECRUITMENT PRACTICES The contractor filled positions that were not executive or top management, were not filled from within its organization, and were not positions lasting three days or less. The contractor failed to list these employment opportunities with the applicable local employment service office or through the state workforce job bank website. This failure is a violation of 41 CPR (a) 2. Specifically, The contractor could not provide sufficient documentation that it listed any of its employment openings with the local employment service office, State Department of Labor/Employment.

32 Sample of Common Violations Violation #3 RECRUITMENT PRACTICES The contractor failed to review personnel practices to ensure that the qualifications of known protected veterans or individuals with disabilities are given proper consideration for jobs filled either by hiring or promotion and for all training opportunities offered or available as required by 41 CPR (b) and 41 CPR (b) In addition, contractor did not review all mental and physical job requirements used in selection processes and in medical standards, information and qualifications as required by 4I CFR (c) and 4I CFR (c)

33 Sample of Common Violations Violation #4 RECRUITMENT PRACTICES The contractor did not invite applicants to inform the contractor if they are a covered veteran or individual with disability as required by 41 CPR and 41 CPR The contractor failed to file a Vets-100A report, as required by 4I CFR 6I (c). Specifically, the contractor failed to submit, on or before September 30, 2013, complete and accurate VETS -100A reports to the U.S. Department of Labor, Veterans' Employment and Training Service.

34 Sample of Common Violations Violation #5 EEO POLICY IMPLEMENTATION XYZ failed to provide evidence that they disseminated their EEO policy externally by including it in advertising in the news media, as required by 41 CFR (a) 7.h. XYZ failed to conduct, at least annually, an inventory and evaluation of all minority and female personnel for promotional opportunities and to encourage minority and female employees to seek or to prepare, through appropriate training, for such opportunities, as required by 41 CFR (a) 7.l. XYZ failed to conduct a review, at least annually, of all supervisors adherence to and performance under the contractor s EEO policies and affirmative action obligations, as required by 41 CFR (a) 7.p.

35 Sample of Common Violations VIOLATION #6 PERSONNEL ACTIONS XYZ failed to provide evidence to show that they ensured that seniority practices, job classifications, work assignments and other personnel practices have no discriminatory effect, and continually monitored all related personnel employment activities to ensure that the EEO policy and the contractor s obligations under these specifications were being carried out, as required by 41 CFR (a) 7.m.

36 Sample of Common Violations VIOLATION #7 CONTRACTING ACTIVITY XYZ failed to document and maintain a record of all solicitations of offers for subcontracts from minority and female construction contractors and suppliers, including circulation of solicitations to minority and female contractor associations and other business associations, as required by 41 CFR (a) 7.o.

37 Possible Results of a Construction Compliance Review Letter of no apparent violation Notice of Violations Conciliation Agreement Referral for Enforcement Sanctions

38 The Cost of Audits *all figures are estimates $9,000 $7,000 Legal Team Est. min. $5,000 Consultant $5,000 Est. min. $4,167 $3,334 You $7,500 Your $12,500 Staff 17.5 $400/hr Glassdoor: HR Mgr = $79,500/yr (50% of $6,667 due to responsibilities) Glassdoor: HR Asst. = $36,200/yr $36k/12mos*5*50% staff One Month: $22,834 Glassdoor, Inc. may be found at

39 The Cost of Audits *all figures are estimates $21,000 $9,000 Est. min. $15,000 $5,000 Est. min. $10,000 $4,167 $12,500 $22,500 $16,800 + = $12,000 $8,000 $18,000 $64,800 Est. $58,500 Estimated Q1 Q2 Q1 + Q2 Q1 + Q2 +?

40 The Cost of Audits *all figures are estimates $21,000 $9,000 Est. min. $15,000 $5,000 Est. min. $10,000 $4,167 $16,800 + = $12,000 $8,000? $12,500 $22,500 $18,000 Typical = ~6 mos. ~2 yrs. Q1 Q2 Q1 + Q2 Q1 + Q2 +?

41 Cost of Non- Compliance Sanctions for Non-Compliance Back pay awards Withhold contract progress payments Terminate contracts Debarment from future contracts

42 Q&A

43 Please Send Your Questions to: Ahmed Younies HR Unlimited Inc Tel: (714)