OFCCP Proposes New Desk Audit and Focused Review Scheduling Letters

Friday, April 12, 2019

OFCCP today proposed extensive changes to the agency’s various letters used for scheduling federal contractors for compliance evaluations under Executive Order 11246, Section 503 of the Rehabilitation Act (Section 503), and Section 4212 of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). The proposed changes will impact the data and information federal contractors must provide in response to routine compliance reviews, corporate management compliance evaluations and compliance checks, as well as focused reviews under Section 503 and VEVRAA.

With respect to the agency’s desk audit scheduling letter and itemized listing, in addition to the information already provided in the response to a compliance review, OFCCP’s proposal would require the submission of:

  • The contractor’s most recent analysis of compensation data to determine whether there are gender-, race-, or ethnicity-based disparities;
  • An availability analysis that will consider the incumbency and availability by job group for individual races and ethnicities, in addition to the availability of minorities in the aggregate;
  • Promotion “pools” for each job group or job title, by race, ethnicity, and sex; and
  • A list of the contractor’s three largest subcontractors based on contract value.

OFCCP has also proposed significant changes to its Section 503 focused review letter, which was just released last fall, and has also proposed a corresponding VEVRAA focused review letter. Under the new letters, contractors would be required to submit employee-level compensation data by disability or veteran status, as well as applicant- and employee-level logs of applicant, hire, promotion, and termination activity.

OFCCP’s proposed compliance evaluation scheduling letters are available for download here. Comments on the changes are due by June 11, 2019, and CWC will be filing comments.

CWC will issue a memo next week providing more details about the proposed scheduling letters, and the practical implications these changes may have for our members.In the meantime, if you have any questions, please feel free to contact one of our compliance policy experts at 202-629-5650 or info@cwc.org.

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