OFCCP Audit Trends. Sherry Rest, PHR, SHRM-CP Director, Client Services HudsonMann, Inc. All Rights Reserved.

Transcription

1 OFCCP Audit Trends Sherry Rest, PHR, SHRM-CP Director, Client Services

2 2016 To Be Covered OFCCP Leadership & Strategies OFCCP Enforcement Trends OFCCP Audit Survival

3 OFCCP Leadership and Strategies People and Politics

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5 2,602 Compliance Reviews Fiscal Year ,143 82% 16% Notice of Compliance 432 Conciliation Agreements 35 1% <1% Financial Agreements 1 Consent Decree

6 FY 2015 Violation # of Violations % of Total Audits Recordkeeping 235 9% Recruitment 229 9% Written AAP 130 5% Hiring 37 1% Selection or Testing 8 <1% Accommodations 4 2% Terminations 2 <1% Promotions 2 <1%

7 2015 OFCCP Settlements "There are no such things as 'women's work' and 'men's work.' There is only work and federal contractors are well aware of their obligation to provide equal opportunities to all employees and job applicants." "Preventing workplace discrimination requires proactive steps. When contractors accept federal funds, they agree to take those steps to ensure that taxpayer money is never used to discriminate in hiring or employment. - Patricia Shui, OFCCP Director

8 2,602 Compliance Reviews Fiscal Year 2016 as of 9/15/2016 1,211 80% 18% Notice of Compliance 280 Conciliation Agreements 26 2% <1% Financial Agreements 2 Consent Decrees

9 FY 2016 as of 9/15/16 Violation # of Violations % of Total Audits Recordkeeping % Recruitment 133 9% Written AAP 93 6% Hiring 26 2% Selection or Testing 5 <1% Accommodations 1 <1% Terminations 3 <1% Promotions 3 <1%

10 ONLINE FOR ALL TO SEE!! OFCCP Enforcement Statistics ogesdw.dol.gov/views/search Freedom of Information Act Reading Room dol.gov/ofccp/foia/foiareadingroom

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12 Gordon Food Service, $1.85m Gordon Food Service will pay $1.85 million to female applicants, hire 37 female applicants and stop using a strength test found to be discriminatory. Too often we find tests like the one used in this case that exclude workers from jobs that they can in fact perform, said Patricia A. Shiu In this case, women were denied good-paying jobs. We are making sure that these women are compensated and that some are able to get the work they sought when positions become available.

13 Hewlett-Packard $750K Hewlett-Packard will pay $750K in back wages & interest to 504 qualified applicants including 349 African Americans, 1 American Indian/Alaskan Native, 109 Asians, 44 Hispanics and 1 Native Hawaiian/Pacific Islander rejected for Inside Sales Representative positions who were not hired based on race and national origin. This settlement reflects a mutual commitment..to ensure all workers have a fair shot at competing for good jobs, said Patricia A. Shiu HP will also place 33 of the applicants into those positions with retroactive seniority.

14 Jennie-O Turkey, $492k Jennie-O will pay $492,000 in back wages to 339 female applicants after found to be discriminating in their entry level hiring practices from February 2009 to February Discrimination can be prevented when employers have nondiscriminatory selection procedures in place and make certain that they are followed, said OFCCP Director Patricia A. Shiu.

15 Insider Information from NILG Former Compliance Officers Lisa Kaiser and Katherine Haight Lots of training Grab easy cases Dig until you find something Miscommunication between contractors and OFCCP A QUOTA?!? Final take away

16 Government Accountability Office Report Equal Employment Opportunity: Strengthening Oversight Could Improve Federal Contractor Nondiscrimination Compliance

17 Government Accountability Office Report Findings Audit methods may not focus where investigation needed OFCCP does not use generalizable sample Contractor outreach and assistance activities declined

18 Government Accountability Office Report Recommendations 1. Change scheduling process 2. Monitor AAPs on regular basis 3. Make changes to scheduling appropriate for human capital 4. Provide timely and uniform training to new staff 5. Improve outreach and assistance to contractors 6. Assess contractor guidance for clarity

19 What We Are Seeing

20 What We Are Seeing Still extreme variance in length Intermittent communication Requests for quick turn around In-depth questions regarding policies, accommodations and implementation of new regulations Data aggregation Deep dives into adverse impact Deeper dives into compensation

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23 Your Support at HudsonMann DATA TEAM ONLINE TRAINING ACCOUNT MANAGER AAP SEMINAR HRIS and IT SUPPORT

24 How Do You Minimize Potential Liability? Review current recruiting practices Follow formal application process

25 No informal expressions of interest Use active consideration period Set and use minimum qualifications Review Pay Practices

26 Review testing validation Document! Document! Document! State postings Conduct an Internal audit

27 Retain supporting documents Document! Document! Document!