Liaison Group Conference

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1 The 2013 National Industry Liaison Group Conference A Review by Bill Osterndorf, President HR Analytical Services September 13, 2013

2 The 2013 National Industry Liaison i Group Conference A Review by: Bill Osterndorf, President HR Analytical Services All materials in this presentation copyright HR Analytical Services, 2013 For reproduction rights, please contact HR Analytical Services A Review of The 2013 National Industry Liaison Group Conference Slide 2

3 Overview of the 2013 NILG Basic information Held in Indianapolis, Indiana July 30 August 2, 2013 Featured presentations by representatives of OFCCP, EEOC, ODEP and VETS Also featured presentations by corporate leaders and industry representatives Conference theme: Raising the Game Winning at Compliance Themes from presentations and conference attendee responses Frustration with the lack of concrete news from OFCCP Concern about OFCCP s new approach to compensation Anxiety about the growing disconnect between OFCCP and the federal contractor community A Review of The 2013 National Industry Liaison Group Conference Slide 3

4 The Lack of Concrete News from OFCCP No firm dates or information provided for the following initiatives: Revised veterans regulations (originally proposed April 2011) Revised disability regulations (originally proposed December 2011) Revised federal contract compliance manual (FCCM) (announced in 2011) New regulations on compliance reviews for construction contractors, sex discrimination guidelines (announced in 2011) What happened during the time of the conference July 30, 2013 OFCCP sends final version of revised regulations regarding protected veterans to the Office of Management and Budget (OMB) July 31, 2013 OFCCP sends final version of revised regulations regarding persons with disabilities to OMB Why was there no public announcement regarding the new regulations (or the FCCM)? A Review of The 2013 National Industry Liaison Group Conference Slide 4

5 Information from OFCCP Presentations ti Formal presentations by OFCCP Keynote by Patricia Shiu, panel discussion featuring two regional directors and other OFCCP representatives, presentation by Pamela Coukos Highlights from OFCCP presentations (other than compensation) Hiring consistency, good record retention, and documentation are important Data should be provided electronically Statistical anomalies should be explained up front Develop meaningful relationship with recruitment sources Companies should conduct self-audits and management training OFCCP will continue to use scheduling announcement letters (SAL/CSAL), but will send them to individual facilities Negative trends: (1) record-keeping problems; (2) delays in submission of AAPs or subsequent data; (3) pushback in providing access to records and facilities; (4) boilerplate AAPs A Review of The 2013 National Industry Liaison Group Conference Slide 5

6 OFCCP Presentation ti on Compensation Presentation by Senior Program Advisor Pam Coukos Coukos leads equal pay enforcement efforts Helped develop Directive 307 on compensation Highlights from presentation OFCCP has a team-based model for investigating compensation issues Initial data for item 11 in scheduling letter may NOT be submitted by job title OFCCP will ask for guidance on compensation philosophies and practices OFCCP will ask for more information o when there e is a systemic difference e in pay. Training, promotion, and other information may then be relevant. There are no triggers under Directive 307. There is no pass/fail test. OFCCP may do standard deviation and/or multiple regression analyses. Employees may be grouped according to pay structures t (Directive 307 pay analysis groups ). A PAG is a way to analyze similarly situated employee groups. Among issues in comp cases: (1) initial placement on hire; (2) compensation other than base salary OFCCP is interested in company negotiating practices regarding starting salaries A Review of The 2013 National Industry Liaison Group Conference Slide 6

7 Other Presentations ti on Compensation Presentations by various attorneys and experts Mickey Silberman of Jackson Lewis, David Cohen et al of DCI Consulting, John Fox of Fox Wang Morgan Highlights g from presentations Presenters had mixed views about the ramifications of Directive 307 Views ranged from this is a disaster to this is no big deal PAGs are a problem Do not combine similarly situated employees as required by Title VII May routinely show disparities because of types of employees included Variables used to explain pay must be used consistently and appropriately Variables that are used inconsistently or that have an adverse impact will not be considered valid by OFCCP OFCCP is concerned about women and minorities being steered into lower paid jobs OFCCP will start by investigating systems issues With small groups, OFCCP must demonstrate intentional discrimination Can submit item 11 data by job title A Review of The 2013 National Industry Liaison Group Conference Slide 7

8 Two Perspectives OFCCP and Federal Contractors t OFCCP Perspective Patricia Shiu - OFCCP is first and foremost a worker protection agency. Shiu - The commitment to fairness and opportunity begins with enforcement. Shiu - Contracting with the federal government is a privilege. Pam Coukos Directive 307 falls within Title VII principles Concerns for federal contractors Lack of transparency at OFCCP Increasing difficulty of compliance reviews Massive data requests Directive 307 issues Administrative i i law judges and the administrative i i review board (ARB) are beholden to political forces Forthcoming changes to regulatory process Affirmative action compliance is at a crossroads A Review of The 2013 National Industry Liaison Group Conference Slide 8

9 Other Highlights ht of the NILG Conference EEOC Presentations Presented by EEOC Commissioner o Victoria Lipnic EEOC is focusing on criminal background checks Checks should be done as late as possible in consideration process EEOC is concerned with age discrimination in hiring EEOC has increased focus on accommodation for persons with disabilities and pregnancy accommodation Additional Highlights g There are many concerns with the new census data Consider limiting the size of job groups Provides protection during review of personnel activity data OFCCP may use job groups to analyze compensation Frito Lay case should prompt contractors to move compliance reviews forward Healthcare institutions providing services under TriCare are subject to OFCCP review There were many different views on when new regulations and FCCM will appear A Review of The 2013 National Industry Liaison Group Conference Slide 9