OFCCP Warns 1,000 Federal Contractors of Potential Compliance Audits

February 6, 2018Alerts Labor & Employment Alerts

On February 1, 2018, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) mailed 1,000 Corporate Scheduling Announcement Letters (CSAL) to federal contractors and subcontractors. These courtesy notifications are sent to advise contractors and subcontractors that they were identified for possible scheduling of a supply and service compliance evaluation and to encourage them to completely, accurately and timely produce materials and information for a forthcoming audit.

The OFCCP indicated it will be sending out audit notices on March 19, 2018. Unlike in years past, the OFCCP has not indicated that it is targeting a specific industry. The OFCCP’s authority to perform affirmative action audits for covered federal contractors and subcontractors exists pursuant to: Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974.

Federal contractors and subcontractors should advise each establishment within their company of OFCCP courtesy notifications and notify their human resources department in the event they receive a courtesy notification.

Additionally, a federal contractor or subcontractor who receives a CSAL should immediately:

  • Collect copies of its Affirmative Action Plans for the current and prior year and raw data concerning applicants, hires, terminations, promotions and employee compensation.
  • Perform an analysis to determine whether the entity complies with all federal affirmative action requirements.
  • Prepare an Impact Ratio Analysis using its raw data to determine whether women, minority and individual minority groups experience an adverse impact in hiring, promotion or termination.
  • Prepare a compensation analysis to determine if existing wage disparities exist based on race or gender; and, if disparities exist, determine whether they are defensible.
  • Gather documentation of outreach efforts in job groups that do not meet availability percentages with women and minorities.
  • Gather documentation of outreach efforts regarding veterans and individuals with disabilities.
  • Gather any EEO-1 Reports and Vets 100A Reports that have been filed for the previous three years.

Federal contractors or subcontractors who receive an OFCCP courtesy notification and have questions or concerns regarding affirmative action requirements, preparations for a potential audit or compliance issues should consult with experienced counsel for guidance.

This publication is intended for general information purposes only. It does not constitute legal advice. The reader should consult with knowledgeable legal counsel to determine how applicable laws apply to specific facts and situations. This publication is based on the most current information at the time it was written. Since it is possible that the laws or other circumstances may have changed since publication, please call us to discuss any action you may be considering as a result of reading this publication.