The temp agency, acting as your agent, is essentially an extension of your company for compliance purposes, so all the obligations that attach to ensure non-discrimination and absence of disparate impact in selection and hiring, would also apply to them. Because it is providing employees to work on your federal contract and these employees are on their payroll, your temp agency may also be considered by OFCCP as a subcontractor. The laws that OFCCP enforces apply to both federal contractors and subcontractors. As such, the obligations that the subcontractor should be performing will be no different than that of a prime contractor. You are also encouraged to examine your relationship with your temp agency employees to make sure that a joint employment situation does not exist, 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 temp 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.