Office of Federal Contract Compliance Programs (OFCCP)...compliance evaluation by the U.S....
Transcript of Office of Federal Contract Compliance Programs (OFCCP)...compliance evaluation by the U.S....
Office of Federal Contract Compliance Programs (OFCCP)
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Presenters
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Sheri BuchananManaging HR consultant
Jamie BrabstonSenior Legal Consultant
Redstone Government Consulting
Noah “Chip” Hicks IIAttorney at Law
George YundAttorney at Law
Frost Brown Todd Attorneys
OFCCP’s Mission StatementAt the Office of Federal Contract Compliance Programs (OFCCP), we protect workers, promote diversity and enforce the law. OFCCP holds those who do business with the federal government (contractors and subcontractors) responsible for complying with the legal requirement to take affirmative action and not discriminate on the basis of race, color, sex, sexual orientation, gender identity, religion, national origin, disability, or status as a protected veteran. In addition, contractors and subcontractors are prohibited from discharging or otherwise discriminating against applicants or employees who inquire about, discuss or disclose their compensation or that of others, subject to certain limitations.•EO 11246
•Section 503 of the Rehabilitation Act of 1973, amended
•The Vietnam Era Veterans’ Readjustment Assistance Act of 1974
What’s New?
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Why Does it Matter?• August 1, 2019: ALJ has ordered Enterprise RAC Company of Baltimore to pay $6,645,444 in lost
earnings and benefits to 2,336 African-American applicants for the company’s management trainee program
• July 25, 2019: Huntington Ingalls Industries Inc. has agreed to pay $159,050 in back wages and interest to resolve alleged systemic hiring discrimination violations found in a routine compliance evaluation by the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP). The company has also agreed to make job offers to six eligible class members who express an interest in employment and meet qualifications.
• June 13, 2019: Consolidated Diesel Inc. agrees to pay $50,000 in back wages for alleged pay discrimination (paid 11 African-American managers less than white managers in similar roles)
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Equal Employment Opportunity• Non-discrimination & Anti-Harassment
• Diversity and Inclusion
• Fairness/Equality of Treatment
• Protected Classes as defined by law
• Gender, race, age, religion, national origin, disability, veteran status etc.
EEO laws require employers to provide equal opportunities to all employees and applicants with regard to recruitment, hiring and all terms and conditions of employment.
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What Does “Affirmative Action” Mean?Affirmative action requires government contractors to take affirmative steps to develop programs, policies and procedures for proactively recruiting, hiring, training and promoting women, minorities, people with disabilities and veterans to ensure that all individuals have equal opportunities in employment.
Although EEO and affirmative action are primarily matters of legal compliance, they do help create a workplace that is more supportive and diverse.
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Components of an AAP• Organizational Profile
• Organizational Display
• Workforce Analysis
• Job Group Analysis
• Placement of Incumbents in Job Groups
• Determining Availability to Incumbency
• Placement Goals
• Designation of Responsibility
• Identification of Problem Areas
• Action-Oriented Programs
• Internal Audit and Reporting System
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OFCCP AuditsRandomly chosen
◦ CSAL – issued March 2019 with 3500 establishments for FY2019◦ 503-Focus Review
◦ Compliance Check
◦ Establishment Review
◦ FAAP Review
Pre-Award compliance
Directed Reviews
Conciliation Agreement and Consent Decree Follow-up Evaluation
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Audit Process Scheduling Letter
Pre-Desk Audit
Desk Audit
Pre-Onsite Audit
Onsite Review
Offsite Review
Conciliation
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Onsite AuditEntrance Conference
Facility Inspection
Access to Contractor Records
Management and Employee Interviews
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Has the company maintained AAP-related
records for three years?
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SHRM website
Job Postings are a BIG Deal!VEVRAA requires that Federal Contractors post openings with Employment Service Delivery Systems (ESDS), notifying them that they are a contractor and desire priority referrals of protected veterans.
Federal contracts are required to post “all employment openings” with the appropriate ESDS where the job opening occurs. Three exceptions:• exec and senior management• positions filled internally• positions lasting three days or less
Review the Requisition Process!• Basic qualifications
◦ OFCCP’s definition of basic qualifications:
◦ The “basic qualifications” which an applicant must possess means qualifications that the contractor advertised to potential applicants or criteria which the contractor established in advance. In addition, the qualifications must be:
◦ Noncomparative features of a job seeker (e.g. three years’ experience in a particular position, rather than a comparative requirement such as being one of the top five among the candidates in years of experience);
◦ Objective (e.g., a bachelor’s degree in accounting, but not a technical degree from a good school); and
◦ Relevant to performance of the position.
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Who is an Applicant?
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OFCCP’s Internet Applicant Recordkeeping Rule
An “Internet Applicant” is an individual who satisfies all four of the following criteria:◦ The individual submitted an expression of interest in employment through the Internet or related
electronic data technologies;
◦ The contractor considered the individual for employment in a particular position;
◦ The individual’s expression of interest indicated that the individual possesses the basic qualifications for the position; and
◦ The individual, at no point in the contractor’s selection process prior to receiving an offer of employment from the contractor, removed himself or herself from further consideration or otherwise indicated that he/she was no longer interested in the position.
Dispositioning Candidates – be detailed!
Documentation & Record Retention
Internal Audit and Reporting SystemInternal Audit and Reporting System• Should periodically review practices, policies, compensation system, recruitment, training, etc
• Documentation
• Evaluation of Good Faith Efforts
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Training Performed?Manager Training• EEO
• Affirmative Action Plan Commitments and Responsibilities
• Anti-Harassment
• Hiring Process
Employee Training• EEO
• Affirmative Action
• Anti-Harassment
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Compensation Policy Analyzation• Evaluate as per Directive 2018-05 to be prepared but do not initially provide
• Auditors should take your practices, pay groups, hierarchy and job structure into consideration. Have this prepared in advance.
• Considerations:• Prepare exhaustive list of factors affecting pay by job
• Have policy and ensure it’s being followed
• Who decides salary? Consistent? Ranges?
• Performance increases documented? Consistent (similar rating = similar increase)?
• Management trained• Equal opportunity
• Compliance
• Documentation
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Sheri BuchananManaging HR consultant
Jamie BrabstonSenior Legal Consultant
Redstone Government Consulting
Noah “Chip” Hicks IIAttorney at Law
George YundAttorney at Law
Frost Brown Todd Attorneys
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