Request and receive a product demo through 12/31/21 and we’ll donate $10 to the United Way. Request a Demo.

Accelerate your success in building more diverse, innovative, high-performing teams with Circa’s SaaS-based technology solutions.

This is the first article in a two-part series on OFCCP’s proposed audit practice changes. See here for our article on OFCCP’s proposals for “Focused Reviews” and “Compliance Checks.” We encourage you to participate in the public comment period concerning these changes before it closes on June 7th.

The OFCCP has been going at full speed for more than a year now, with Directives and announcements coming out, it seems, every day. To keep the momentum going, the OFCCP now has six Scheduling Letters in public review and comment. OFCCP’s plans have some things old, some things new, and one thing (additional monitoring detail) already off the table.

The Office of Management and Budget (OMB), which runs the review process, is asking for contractor input. The OMB balances the “burden” of contractors providing requested information with the usefulness of the information obtained. The comment periods end in early June, depending on the Scheduling Letter type. In the past, the public review process has led to significant changes in OFCCP’s plans. For example, the current veterans and disability plan regulations look a lot different in their 2013 proposed and 2014 final forms.

This article focuses on the changes to the standard “supply and service” desk audit that most contractors are familiar with. You can find the proposed scheduling letters here.

Our follow-up article will address the OFCCP’s new “Focused Review” and updated “Compliance Check” initiatives.

Recent Developments for Consideration

Per several of the proposed Scheduling Letters, if your audit notice is sent more than 6 months into your plan period, you would have to provide hire, terminations and promotions data “for every completed month in the current AAP year.” (So, if you have a calendar year plan and receive a Scheduling Letter in mid-September, your monitoring data would run from January 1 to August 30.) Since releasing the Scheduling Letters for comment, OFCCP representatives have said that you won’t have to provide data beyond the standard 6 month monitoring period detail unless you want to.

Another thing: OFCCP Director Leen is saying that the Agency is going to pay much more attention to your mandated review of outreach effectiveness than it has in the past. So, review your outreach program!

What’s up with the current Scheduling Letters?

The current standard Scheduling Letters expire June 30, 2019 (see the current standard “Supply and Service” scheduling letter here. The expiration date of all current Scheduling Letters will be extended, however, until updated versions come into effect. It’s hard to say how long it will take OMB to finish its review. Assume the OFCCP wants to get the new Scheduling Letters in place by October 1, 2019, the start of its 2020 fiscal year. Things may move quickly.

What’s new with the “Supply and Service” Scheduling Letter?

Identifying your three largest “dollar value” subcontractors
This new requirement is in the Scheduling Letter itself, not the “Itemized Listing” section that follows it. Historically, subcontractors were not subject to much OFCCP oversight unless they were federal government contractors on their own. This new request is the government’s way of identifying subcontractors for possible review. The Agency made this a difficult job, however, by asking which of your subcontractors has the largest role in the federal contracts your company fulfills. Many contractors will find this requirement challenging.

Providing minority sub-group availability and placement goals

Items 4 and 6 of the Itemized Listing move beyond the current “minority all” availability and goal reporting to focus on minority sub-group analysis and reporting. While you might already be doing this review on your own, preparing this detail for audit will be time consuming. Additionally, the proposed sub-group goal review will increase the likelihood that your submission has indicators that the OFCCP will want to follow-up on in audit.

Providing an analysis of your compensation system

The requirement for analyzing your compensation program to determine whether there are race/gender disparities is not new. Providing your actual compensation review to the OFCCP when audited is new. The good news is that your Executive Order 11246 review of your “compensation system” need not be hyper-technical. We outlined the critical elements of a “back of the envelope” summary compensation review in AJE’s April webinar on audit practices.

Promotions
In addition to identifying the job groups involved in promotions (the “to and from” and related detail), the Agency now wants you to identify individual applicants. What is the point of this? Even if your reporting system is good, your adverse impact results could be, well, random –skewed, for example, because many promotions are “non-competitive,” 1:1 career development and succession planning appointments.

Author

Roselle Rogers
Vice President, Diversity, Equity, and Inclusion
Circa
Roselle Rogers, SPHR, SHRM-SCP, is the Vice President for Diversity, Equity, and Inclusion at Circa with responsibility for leading its DEI strategy and thought leadership initiatives. She is a subject matter expert in HR and OFCCP Compliance, affirmative action, EEO, and diversity; and frequently speaks on these topics at various HR conferences and webinars, educating and keeping federal contractors abreast of trends and recent developments in OFCCP/AA/EEO compliance. Prior to this role, Rogers was responsible for the company’s HR, compliance, business operations, and sales support operations, contractual and legal affairs, corporate training, and strategic initiatives. She has more than 30 years of HR experience and is certified as a Senior Professional in Human Resources (SPHR) and SHRM - Senior Certified Professional (SHRM-SCP). She is a member of the Milwaukee and Chicago chapters of the Industry Liaison Group (ILG), a presenter on the Circa OFCCP webinar series, is the lead editor of the weekly Circa publication, The OFCCP Digest, and an in-house expert on the online forum Ask the Experts. She served as a Director on the Metro Milwaukee SHRM Board, chaired the Metro Milwaukee SHRM Certification Committee, and facilitated the SHRM SPHR/PHR Certification program. Roselle is a graduate of the University of the Philippines with a Bachelor’s degree in Economics and a Postgraduate Diploma in Human Resources Development from the Ateneo de Manila University. She currently volunteers her time as the Vice President/Secretary of the Milwaukee Industry Liaison Group and President-elect of the University of the Philippines Alumni Association of Wisconsin.

Skip to content