Last month the U.S. Office of Federal Contract Compliance Programs (OFCCP) issued a Corporate Scheduling Announcement List (CSAL) for the 2021 Fiscal Year (FY2021).

The CSAL is a courtesy notice to federal contractors that advises them that one or more of their establishments has been selected to have all or part of its affirmative action plan (AAP) audited to determine whether it is in compliance with Executive Order 11246, Section 503 of the Rehabilitation Act of 1974 and/or the Vietnam Era Veterans' Readjustment Assistance Act (VEVRA) and their implementing regulations. 

Upon receiving the OFCCP’s Office of Management and Budget (OMB)-approved scheduling letter, the contractor has 30 days to produce their AAP and supporting documents. The purposes of the CSAL is to:

• Provide the contractor establishment’s internal EEO staff at least 45-days advance notice to prepare for the compliance review; and
• Encourage contractors to take advantage of OFCCP compliance assistance offerings.

Contractors should check the OFCCP’s Scheduling List Resources webpage to determine whether their business appears on the CSAL as courtesy notices are no longer being delivered to contractors via mail.

The OFCCP schedules roughly 2,000 audits per fiscal year. The FY2021 CSAL is limited to supply and service contractors (and subcontractors) only and construction contractors can expect a separate CSAL to be published at a later date.

Contractors selected for the FY2021 CSAL may be subjected to one of the following audits:

Section 503 Review
Covers only those obligations that are specified under Section 503 of the Rehabilitation Act of 1973

Corporate Management Compliance Evaluation (CMCE)
Covers the full scope of a contractor’s compliance with all three of OFCCP’s laws (Executive Order No. 11246, Section 503 and VEVRAA)

Compliance Check
Evaluates the contractor’s efforts in meeting its affirmative action goals, outreach activities and recruitment efforts for protected groups

Establishment Review
Considered to be CMCEs at the establishment level

Functional Affirmative Action Program (FAAP) Review
Applies to contractors who have a FAAP agreement with the OFCCP

Consulting with experienced counsel can help federal contractors or subcontractors facing an OFCCP audit notice mitigate risk and ensure that their company's affirmative action plans are compliant. Contractors that have any questions about this alert or any of their AAP obligations may contact Kenneth A. Rosenberg at krosenberg@foxrothschild.com or 973.994.7510 or any member of our Labor & Employment Practice.