HR Analytical Services

NEWS

OFCCP Releases Corporate Scheduling Announcement Letters

For a number of years, OFCCP has issued letters to certain multi-facility employers advising them that one or more facilities would be underoing an affirmative action compliance review. These letters, called Corporate Scheduling Announcement Letters (CSALs), have generally been sent twice a year. While their use has been somewhat unpredictable, CSALs have been very helpful to large organizations that can use the CSAL list to plan for reviews. It appears that OFCCP is currently in the process of sending out CSALs for the coming year.

OFCCP Releases Proposed Revisions to Regulations Regarding Persons with Disabilities

On Friday, December 9, the Office of Federal Contract Compliance Programs released proposed revisions to the affirmative action regulations regarding individuals with disabilities. These proposed revisions represent a foundational change in OFCCP's formal expectations regarding the efforts federal contractors and subcontractors must make on behalf of individuals with disabilities. OFCCP has shown a significantly increased focus on disability issues in affirmative action compliance reviews conducted during 2011. The proposed revisions signal a further intensification in the agency's focus.

OFCCP Produces Final Version of Revised Scheduling Letter and Itemized Listing

On May 12, 2011, the Office of Federal Contract Compliance Programs (OFCCP) published proposed major changes to the Scheduling Letter and Itemized Listing that are sent to companies at the start of an affirmative action compliance review. After receiving comments from various members of the public, OFCCP produced what it anticipates will be the final version of the Scheduling Letter and Itemized Listing on September 28, 2011. The final versions of the revised Scheduling Letter and Itemized Listing are basically the same as the proposed versions. The changes to the Itemized Listing are dramatic and wide-ranging and will have a major impact on the information that companies will need to submit during an affirmative action compliance review.

Veterans' Employment and Training Service Announces Further Delay in Filing Period for VETS-100/100A Reports

The period for federal contractors to file the annual VETS-100/VETS-100A reports would typically close on September 30. The Department of Labor's Veterans Employment and Training Service (VETS) had announced that companies would not be able to begin filing their VETS-100/VETS-100A reports until October 1 at the earliest. VETS recently announced on their website that the filing deadline will be extended until January 15, 2012. Please note that the data for the VETS-100/VETS-100A will be based on a payroll run during the period from August 1 through September 30. Thus, the filing period and the data period are not the same for this year's report.

Please note that almost all companies should be filing the VETS-100A report rather than the VETS-100 report. The VETS-100 report is required ONLY for companies that have unmodified contracts dating before December 1, 2003. With the many modifications that are routinely made to federal contracts, it would be extremely rare for a federal contractor or subcontractor to have an unmodified contract dating before December 1, 2003.

OFCCP Issues Advanced Notice of Proposed Rulemaking on Compensation

The Office of Federal Contract Compliance Programs has released an Advanced Notice of Proposed Rulemaking (ANPRM) relating to compensation. OFCCP expects to develop a tool that it will use to collect compensation data from federal contractors and subcontractors, and the agency is seeking input on what should go into this tool. The ANPRM can be found at regulations.gov. You can also find the ANPRM on the documents page of our website.

The ANPRM does not replace the compensation guidance issued by OFCCP in 2006. Instead, it seeks to determine how OFCCP should request compensation data. Once OFCCP gathers information, we expect the agency will issue a formal proposal of some kind on compensation later this year or (more likely) in 2012.

For more information on OFCCP's current process for reviewing compensation information, see our news item in this regard.

Notes from the 2011 National Industry Liaison Group Conference

The 2011 National Industry Liaison Group (NILG) conference was held July 27-29 in New Orleans. Among the most important take-aways from the conference are the following:

OFCCP Director Patricia Shiu said that "Affirmative action can no longer be measured by good faith efforts." It was clear from her comments and the comments of other OFCCP representatives that the agency is looking for federal contractors and subcontractors to produce results from their affirmative action efforts.
Ms. Shiu said that "Discrimination in the workplace is still a very real problem for the economy."
One of the OFCCP Regional Directors stated that "OFCCP is becoming more committed to enforcement." Again, this reflected the general attitude of the agency that more is being expected from contractors and subcontractors, and that the agency is willing to use its enforcement powers to ensure greater efforts are made.
One of the Regional Directors reminded the audience that "federal contracts are a privilege, not a right."
Along with the recent proposed revisions to the veterans regulations and the letter that begins an affirmative action compliance review, there are multiple new initiatives on the horizon, including:

Impending changes to the regulations regarding persons with disabilities;
New guidance regarding compensation;
Impending changes to the regulations for construction contractors;
The release of the long-delayed revisions to the Federal Contractor Compliance Manual

Representatives from the Department of Labor's Office of the Solicitor (i.e. legal counsel for OFCCP) indicated that the Solicitor's Office is more willing to take risks in its enforcement of OFCCP regulations, and the Solicitor's Office is working close with OFCCP compliance officers from an early stage in compliance reviews.

Presenters and participants agreed that this is a time of monumental change for OFCCP and that federal contractors and subcontractors need to be ready for these changes.

Recent Developments at OFCCP

OFCCP currently has a variety of major initiatives including proposed changes to its scheduling letter and itemized listing and proposed changes to the affirmative action regulations for veterans. (These changes are covered below.) Along with these major initiatives, there are various other recent developments that companies covered by the federal affirmative action regulations should be aware of.

OFCCP Proposes Changes to the Scheduling Letter and Itemized Listing

On May 12, 2011, the OFCCP published proposed major changes to the Scheduling Letter and Itemized Listing. OFCCP's proposals make dramatic and wide-ranging changes to the scope of information that would need to be provided at the start of a compliance review.

OFCCP Requests Extensive Compensation Data During All Compliance Reviews

During 2011, the Office of Federal Contract Compliance Programs has been requesting extensive data from all companies during affirmative action compliance reviews in order to determine whether there is any evidence of compensation discrimination. OFCCP is using a new test to determine which contractors will need to provide additional data. The test analyzes the preliminary data submitted at the start of a compliance review to determine whether there is a 2% or $2,000 differential in how males and females are paid in any grouping (e.g. job title, grade, job group) and whether there is a 2% or $2,000 differential in how minorities and whites are paid. If there is such a differential in even one grouping, OFCCP asks for additional data on ALL employees. From what we know, every contractor fails this test; thus, every contractor undergoing review is being asked to provide the additional data.

OFCCP Releases Proposed Revisions to Veterans Regulations

On April 26, the Office of Federal Contract Compliance Programs released proposed revisions to the affirmative action regulations for veterans. Make no mistake; if these regulations are published in final form, they would make a significant impact on how federal contractors and subcontractors deal with veterans.