Federal contractors are required under Executive Order 11246, Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), Section 503, and Executive Order 13672 final rules to state in all solicitations or advertisements for employees that all qualified applicants will receive consideration without regard to their status as a member of a protected group. Technically speaking, your obligations apply to positions that are in your payroll. If the contractor is going to be in the staffing agency’s payroll, then the EEO tagline needs to be included in their job advertisements. Because it is providing employees to work on your federal contract and these employees are on their payroll, your staffing agency may be considered by OFCCP as a subcontractor. The laws that OFCCP enforces apply to both federal contractors and subcontractors. As such, the EEO tagline that the subcontractor should be using will be no different than that of a prime contractor. You are also encouraged to examine your relationship with your staffing agency employees to make sure that a joint employment situation does not exist. On January 20, 2016, the DOL’s Wage and Hour Division issued its interpretation of joint employment under the Fair Labor Standards Act. Depending on factors such as who directs, controls, or supervises the work, and who has the power to hire or terminate the employee, determine work conditions and rate/method of pay, you and the staffing agency may both be considered employers of the contractor, and OFCCP may hold you responsible for compliance, regardless of whether the individual is on your payroll or not.
You can use this OFCCP audit checklist to ensure you're doing what is required to maintain OFCCP's regulations including VEVRAA, Section 503, and EO 11246. Or request a demo to streamline your compliance and recruiting efforts.