Compliance Update - OFCCP Activity

During the week of March 9th, the OFCCP provided each Regional Office with a new list of approximately 5,000 facilities eligible for compliance reviews. Eligible contractors were either self-identified through EEO-1 reporting or through external Federal contract databases. The list excludes any establishments currently undergoing a review; were evaluated within the past 24 months; covered by a Functional Affirmative Action Program (FAAP) agreement; or received either the Opportunity or Exemplary Voluntary Efforts Award in the past three years. It is the responsibility of the regional office to send out the scheduling letter initiating the review.

OFCCP also has sent out a new batch of Corporate Scheduling Announcement Letters (CSAL) to the Chief Executive Officer or designated point of contact at the contractor's corporate office or parent company. The CSAL is sent when at least two establishments are identified for possible compliance reviews during the fiscal year. Keep in mind that the purpose of the CSAL is to give contractors advance notice of the contractor's establishments that may be scheduled for reviews but there is no guarantee that the establishment will in fact be reviewed. If your organization has already gotten a CSAL, a second one will be sent only if a new establishment has been identified for a review. There is also a possibly that an establishment may get a scheduling notice even if it does not appear on the CSAL.

To be prepared for the scheduling letter, ensure that you AAPs are up-to-date and your supporting documentation is available and accurate. OFCCP continues to concentrate on hiring activity and compensation but will also conduct more onsite reviews (one out of 50) to support VEVRAA and Rehabilitation Act compliance efforts.

FY 2008 Activity

During FY 2009, OFCCP won a record $67,510,982 in back pay, salary and benefits for 24,508 workers who allegedly had been subjected to unlawful employment discrimination. The monetary relief reflects a 133% increase over financial remedies obtained in FY 2001. This also represents a 30.8% increase over remedies of $51,680,950 received for 22,251 workers in FY 2007. Even thought the financial remedies increased over the year, the number of compliance reviews decreased from 4,923 to 4,333. A part of the recoveries came from enforcement litigation initiated by the Office of the Solicitor and the increase of systemic cases. The number of systemic cases increased from 50 in 2007 to 78 in 2008.

OFCCP continued to develop a database of contractors who had not been reviewed in several years or never to ensure that they were recognized during the scheduling process.

The foregoing has been prepared for the general information of clients and friends of eQuest and Workplace Dynamics LLC. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you would like to contact Workplace Dynamics they may be reached at www.workplace-dynamics.com.