OFCCP Agenda Looking Forward. By: Suzanne Oliva Sr. Compliance Manager September 25, 2012

Transcription

1 OFCCP Agenda Looking Forward By: Suzanne Oliva Sr. Compliance Manager September 25, 2012

2 Up Coming 2012 AAP Webinars Webcast: OFCCP 2013 Agenda Registration: FREE October 2, :00 a.m. to 12:15 a.m. PST 1 Hour HRCI Credit This webinar will cover multiple proposed rule changes which will directly impact the Federal Contractor Affirmative Action Program and OFCCP Audit. > Good Faith Effort Enforcement > Updated 2012 Census Data > EO 4212 VEVRAA > Section 503 Disability > Compensation Guidelines & Compensation Data Collection Tool > New Scheduling Letter > Enforcement Manual > Construction Affirmative Action Plans and placement goals > Enforcement of Individual & Systemic Discrimination Guidelines > Cloud Technology Webcast: The Key Steps to Gathering Defendable AAP Data November 6, :00 a.m. to 12:15 p.m. PST Registration: Free to Members / $35.00 Non Members 1 Hour HRCI Credit Data is Key. The OFCCP is issuing notices of technical violation for recordkeeping. This webinar will assist you with defendable data needed for your plan. > The data behind an A+ AAP Program > Compliance Tips > Review of Best Practices > Review of potential problem areas > Examples of OFCCP Technical Violations

3 November 8 Riverside Mission Inn November 9 Carlsbad La Costa Resort November 13 Burbank Airport Marriott November 16 Anaheim Grand Californian December 4 San Francisco Wyndham Parc 55 Early Registration Taking Place Now Through 9/30: $245 per registration (1 or 2) $196 per registrations (3 or more) $1,100 for a table of 6 us at training@employersgroup.com for more details. The HR News You Need To Be Prepared for 2013 Highlights: Top Notch Venues including the La Costa Resort and the Mission Inn (our first time) CEO Panel discussing executive expectations of human resources & the use of metrics Legislative Update with the political, legislative and healthcare update you need to know Two Rounds of Concurrent Sessions featuring top legal talent and subject matter experts Three General Sessions including proactive discussions on contemporary HR issues Senior HR Networking Forum (Anaheim and Burbank Only). Engage and learn from other pros. Q&A Luncheon Session with the latest tips and tricks HR can use immediately Richard Simmons perspective on the latest and upcoming judicial decisions and Richard's wage & hour review Electronic Materials will be available the day prior to print or bring your laptop (traditional 3- ring binders are available for an additional fee) Laptop Charging bring yours, when it runs low, get a claim check and we will charge it for you HRCI Credit (6.5 California or General)

4 Employers Group is an HR Preferred Provider This webinar has been approved for 1 (General ) recertification credit hours toward PHR, SPHR and GPHR recertification through the HR Certification Institute Only those that remain with us for at least 80% of the webinar will be eligible to receive the HRCI training completion certificate for CE submission HRCI Credit Certificate will be ed

5 Employers Group: Who We Are Recognized global leader understanding the complexities of today s HR requirements and organizational needs Team of Experts in the realm of human resources and workforce strategies Valuable Extension and support for your entire human resources team and department Proven Legacy in Providing Reliable and Practical Solutions across a vast array of HR issues facing regional and worldwide organizations Trusted Voice for Business for more than a century, a heritage of service to both the legislative and judicial systems

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9 OFCCP Proposed Rule Making & Budget Unprecedented changes since the 70 s Change Driving Investment and Needs Assessment

10 Abbreviations used in webcast OFCCP Office of Federal Contract Compliance Programs NPRM Notice of Proposed Rulemaking ANPRM Advanced Notice of Proposed Rulemaking ADA Americans with Disability Act VEVRAA Vietnam Veterans Readjustment Assistance Act

11 OFCCP Agenda NPRM EO 4212 VEVRAA NPRM Construction Plans NPRM Compensation Guidelines & Compensation Data Collection Tool Cloud Technology Good Faith Effort Enforcement NPRM New Scheduling Letter ANPRM Section 503 Disability NPRM Enforcement Manual Enforcement of Individual & Systemic Discrimination Guidelines NPRM Construction MEGA Project Audits Updated 2012 Census Data

12 Active Case Enforcement January 2011

13 January 2011 Active Case Enforcement (ACE) OFCCP Replaced: Active Case Management (ACM) with Active Case Enforcement (ACE) Directive 295 signed on December 16, 2010 Effective January 1, 2011

14 OFCCP Compliance Review All-inclusive Desk Audit Phase Submit AAP for Review Final Decision Notice of Compliance Notice of Violation Notice of Discrimination Conciliation Agreement Notice of Enforcement Proceedings Case referral to other agency Active Case Enforcement OFCCP Scheduling Letter Off Site Analysis Onsite Analysis of AAP content Series of Q&A with Contractor Requests for additional Information Requests for Documented Defense Onsite Audit Phase Unsolved questions & concerns Interviews with HR Interviews with managers Interviews with employees Request for documented defense Facility Walk-through

15 Active Case Enforcement (ACE) Full desk audits are conducted in all compliance evaluations Focuses on individual and class cases Removes the affected class member threshold Full compliance reviews for every 25 th establishment

16 What is happening so far in 2012? Enforcement of Proposed Rules before they are finalized! Compensation analysis guidelines EO 4212 (VEVRAA) Section 503 of the Rehabilitation Act New Audit Enforcement Manual New Audit Scheduling Letter

17 2013 OFCCP Budget

18 Office of Federal Contract Compliance Programs 2013 Budget Budget Year Request OFCCP $81,001 $84,172 $105,386 $105,386 $105,187 $106,415 Total FT Employees

19 Number of Nationwide Audits (Projected) (Projected)

20 Top OFCCP Technical Violations Issued in 2012 Implementation of Applicant Tracking System VIOLATION: COMPANY failed to implement an applicant tracking system in accordance with the requirements of 41 CFR and Specifically, during the review period of July 1, 2010 through June 30, 2011, COMPANY failed to maintain race, sex, and ethnic group data for all applicants. REMEDY: COMPANY agrees to implement an applicant tracking system that will allow the contractor to analyze the pool of applicants for: a) Affirmative action purposes to monitor whether the process is yielding an adequate pool of qualified minority and female applicants; and b) Nondiscrimination purposes to monitor for disparate treatment or unlawful adverse impact in the selection process.

21 Top OFCCP Technical Violations Issued in 2012 Self ID & Applicant Log VIOLATION: COMPANY failed to collect and maintain personnel and employment records in accordance with the requirements of 41 CFR (a) and 41 CFR Part Specifically, during the review period of July 1, 2010 through June 30, 2011, COMPANY failed to collect and maintain selfidentification forms and applicant flow log for multiple job titles. REMEDY: COMPANY agrees to ensure that its records are collected and maintained in accordance with the requirements of 41 CFR (a) and 41 CFR Part 60-3.

22 Top OFCCP Technical Violations Issued in 2012 Posting jobs with the State Employment Office VIOLATION: COMPANY failed to list all required employment openings with the appropriate employment service delivery system where the openings occurred, specifically the California Employment Development Department as required by 41 CFR (a)(2). REMEDY: COMPANY agrees to immediately post all required employment openings with the appropriate employment service delivery system where the openings occurred, specifically with the California Employment Development Department.

23 Top OFCCP Technical Violations Issued in 2012 Outreach VIOLATION: COMPANY failed to undertake appropriate outreach, recruitment, and dissemination of its affirmative action policy for covered veterans and individuals with disabilities as required by 41 CFR (f) and (f). REMEDY: COMPANY agrees to undertake appropriate outreach, recruitment, and dissemination of its affirmative action policy for covered veterans and individuals with disabilities.

24 Top OFCCP Notices of Discrimination Issued in 2012 Compensation VIOLATION: Company failed to ensure that its employees are compensated without regard to their race and/or gender as required by 41 CFR (a). REMEDY: Company agrees to revise its compensation practices and take steps to ensure that its compensation system provides an equal opportunity to all of its employees, regardless of race or gender. Provide back pay and interest Conduct an analysis of its compensation practices Develop and implement compensation policies and procedures that will not differentiate compensation on the basis of race and gender of employees. Provide training to those managers who participate in the application of any component of the compensation system

25 Top OFCCP Notices of Discrimination Issued in 2012 Adverse Impact for Applicant to Hire Selection VIOLATION: Company denied job offers to qualified female and minority applicants ( discrimination can be charged on the bases of sex, race and/or national origin) Remedy: Company will pay back wages and interest to applicants who were rejected. Company will extend job offers to the affected workers as positions become available.

26 Top OFCCP Notices of Discrimination Issued in 2012 Reasonable Accommodation VIOLATION: Company failed to enter into the interactive process with an employee who requested a reasonable accommodation. Remedy: Company will pay back wages and damages Company will implement an ADA Policy in compliance with Title I of the ADA Company will Provide training to those managers who manage employees

27 NPRM Compensation Guidelines & Compensation Data Collection Tool

28 Compensation A priority issue for OFCCP Raw data request in compliance reviews Enforcing cohort-level pay issues

29 41 CFR Parts 60 1 RIN 1250 AA03 Non-Discrimination in Compensation Compensation Data Collection Tool The purpose of the proposed new compensation collection tool is to provide insight into potential problems of pay discrimination by contractors that warrant further review Provide tool for evaluation by OFCCP Provide tool for evaluation contractor self-audit

30 Wage Gap U.S. Census Bureau, Current Population Survey 2010 $1.00 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Males Females White Females Black Females Latinas Unexplained gap exists even after accounting for potential explanations

31 Common Compensation Deviation RACE SEX GRADE RATE TITLE JGC TIME IN CO TIME IN JOB W M PRODUCT MANAGER 2 3 years, 6 months 3 years, 6 months H F PRODUCT MANAGER 2 8 years, 5 months 1 years, 3 months POSSIBLE DEFENSE Prior job experience Performance review scores Shift & shift differential Original job title & original rate of pay Education history Experience history Disciplinary write ups/suspensions Additional responsibility Additional qualifications or certifications

32 Compensation Data collected through the tool may be used to identify: Specific industries for industry-focused compensation review Nationwide multi-establishment compensation review Further need for self-assessment Advantages of electronic submission

33 Compensation Tool may be used for: Request for Proposal process (Solicitation for Bid) Targeting for post-award compliance reviews

34 NPRM EO 4212 VEVRAA

35 Notice of Proposed Rulemaking Veterans - EO 4212 (VEVRAA) Public commend ended 7/11/11 Goal: Increase employment of Qualified Veterans Focus on Outreach/Recruitment 2012 OFCCP issuing Notices of Violation for lack of outreach/recruitment in particular for Veterans Disabled Special Disabled Veterans

36 Notice of Proposed Rulemaking Veterans - EO 4212 (VEVRAA) NPRM Veterans - expected to include: Record retention 5 Years Self-identification of Protected Veterans preoffer Hiring goals for Veterans

37 Notice of Proposed Rulemaking Veterans - EO 4212 (VEVRAA) Benchmark utilization with additional data collection responsibilities number of protected veterans referred by state employment services number of protected veterans that applied for positions with the contractor number of protected veterans hired by the contractor

38 ANPRM Section 503 Disability

39 Section 503 of the Rehabilitation Act NPRM - Individuals with Disabilities NPRM Ended 2/7/2012 Goal: Increase Employment for persons with disabilities NPRM Individuals with Disabilities expected changes to include: Self-identification of individuals with disabilities pre-offer Annual resurvey of employees Requires written reasonable accommodation procedures Annual revision of recruitment efforts Documentation of physical & mental job qualifications New quantitative analyses of applicants, hires, workforce Goal: qualified applicants individuals with disabilities

40 Section 503 of the Rehabilitation Act NPRM - Individuals with Disabilities Availability of disabled Applicants will be defined as 7% for each Job Group The OFCCP is considering a Sub-Goal Option of 2% for individuals with targeted severe disabilities Data reporting includes: Number of job openings; number of jobs filled Job fill ratio Individual with disability to total applicant ratio. Hiring ratio of individuals with disabilities to total hires

41 NPRM Construction MEGA Project Audits

42 OFCCP Construction Audits Audit of the Prime Contractor Audit of all the Sub-Contractors Construction Companies Engineering Firms Architecture Firms Sub-contract Specialties Suppliers Vendors Distributors

43 16 Factors of Construction AAP An Affirmative Action program is required for each of the following: 41 CFR Females & Minorities 41 CFR Veterans 41 CFR Disabled Construction Contractors Technical Assistance guide can be found at:

44 Cloud Technology

45 Cloud-computing Technology Solution OFCCP is taking steps to integrate FCCS - A modern cloud-computing based integrated case and content management information technology solution Increases OFCCP s capacity to easily and efficiently create, analyze, generate, schedule, or track cases in a cost-effective manner Save time spent in reconciling information

46 Cloud-computing Technology Solution Identification of similar issues that arise within Corporations Industries Identification of potential cases for enterprise-wide investigations Identification of patterns of violations and non-compliance within a corporation

47 Cloud-computing Technology Solution This process will include random regional quality audits of pre-closure and closed cases National Offices audits regional self-audits By conducting its internal case audits, OFCCP plans to reduce internal case inefficiencies by identifying and addressing deficiencies.

48 Tracking of Contractor Violations Current AAP One or more victims of discrimination Statistical and subjective evidence of discrimination Lack of Improvement from Historical violations History of individual discrimination History of systemic discrimination History of major technical violations such as Notice of Discrimination Applicant tracking violations Lack of required outreach Recordkeeping deficiencies Failure to maintain AAP Noncompliance with other labor & employment laws that may relate to violations of OFCCP regulations

49 NPRM New Scheduling Letter

50 NPRM New Scheduling Letter Public comment period ended 7/11/11 New audit scheduling letter may include: Policies FMLA Pregnancy leave Accommodations for religious observance

51 NPRM New Scheduling Letter Personnel activity analyses for each minority group (i.e., African-American/Black, Asian/Pacific Islander, etc.) Personnel activity analyses to be reported both by job group and job title Submit raw compensation information for all employees including bonuses, incentives, commissions, merit increases, and overtime Compensation Policy VETS-100 and/or VETS-100A report for the last three years

52 Updated 2012 Census Data

53 Updated 2012 Census Data U.S. Census Data 2010 Could also include American Survey Data State Employment Office Data How will the contractor measure incumbency against (exterior data) for Veterans and Disabled?

54 Employers Group Contact Information More Questions? Give us a call we re here to help! Suzanne Oliva Senior Compliance Manager (213) soliva@employersgroup.com Connor Engilman Compliance Specialist (213) cengilman@employersgroup.com Eva Navarro Compliance Specialist (213) enavarro@employersgroup.com