All Federal contractors should be aware that OFCCP is making dramatic changes under the leadership of Patricia Shiu. Desk-audit procedures are being changed behind the scenes and while formal documentation on any policy change has yet to be released, here is some of what we are seeing at Biddle Consulting Group (BCG):
• There has been a surge in the number of desk audits being converted into formal on-site reviews. OFCCP has stated that on-site reviews are now “Standard” and provide a more efficient audit process. It is unclear if OFCCP is attempting to make every audit an on-site although that would seem to be unwieldy for both the OFCCP and the contractor. BCG is attempting to get a response from OFCCP national office to determine any changes in policy.
• OFCCP is focused on job postings, specifically postings for veterans and the disabled. OFCCP is often asking for evidence of job postings in addition to the results of those postings. Related to postings, OFCCP is being very aggressive about Action Oriented Programs (AOP’s) and how successful they have been for contractors. OFCCP is even asking for documentation of the AOP’s listed in the narrative.
• Recent requests for extensions on the 30-day delivery of the AAP after a desk audit letter has been received are being rejected at a seemingly higher rate. While some are still being granted, there has been an increase in rejections. In previous years, rejections were virtually unheard of. Also, OFCCP has threatened very low tolerance for plans not submitted on time.
• One of the more difficult areas that OFCCP is focusing on is data reconciliation. OFCCP is comparing plan data at the beginning and at the end of the plan year to see if the transaction counts result in the expected number(s). For example, if there were ten (10) people in a job group at the beginning of the year, and there were no hires and two (2) terminations in the job group, then OFCCP expects there to be eight (8) people in the job group in the new AAP. This form of data management can be very tricky because people move into and out of job groups and plans for many reasons beyond the basic hire, promotion, or termination. For instance, a transferred or merger related employee may not be noted in one of these types of transactions.
• Since the new leadership has taken over at OFCCP, the number of audits closing has seemed to slow to a crawl compared to the brisk pace of audit closures at this time last year. Whether this is a coincidence or not is unknown.
• While OFCCP continues to focus on hires analyses where possible, BCG is seeing more questions about layoffs and terminations. Even small sample sizes are being scrutinized.
• OFCCP is publicizing their high profile hiring case against Bank of America. See here for details: http://www.dol.gov/_sec/newsletter/
• The OFCCP website has changed to http://www.dol.gov/ofccp/index.htm and readers should note that many of the answers under the Frequently Asked Question (FAQ) section have been updated. Including a broad answer regarding the use of a compensation “Trigger” test.
Friday, February 5, 2010
Tuesday, February 2, 2010
OFCCP Posts the Definition of the Compensation "Trigger" Test
After several years of debate and speculation, the OFCCP has finally posted an answer to the question regarding initial compensation analyses in a desk audit. While it may not provide an exact methodology, the answer does provide the basic formula. The details can be found here:
http://www.dol.gov/ofccp/regs/compliance/faqs/emprfaqs.htm
HAS OFCCP DEVELOPED PROCEDURES FOR CONDUCTING A DESK AUDIT OF A CONTRACTOR'S COMPENSATION PRACTICES?
Each of OFCCP's regional offices uses the same basic procedures for conducting a desk audit review of a contractor's compensation practices. Generally speaking, during a desk audit, the agency will examine the following three criteria when evaluating a contractor's compensation practices:
* Whether, for at least one pay division, there is a specified difference in average compensation between the groups being compared and, if so, whether at least one group appears to be adversely affected.
* After combining the pay divisions meeting the above condition, whether the number of employees in the non-favored group is greater than a specified number and represents a specified percentage of the total employees in that group in the overall workforce.
* Whether the overall percentage of the group most adversely affected in the combined pay divisions is larger, by a specified amount, than the overall percentage of the other groups adversely affected.
The specific thresholds used in each of the three criteria above are not static, but rather are subject to change as OFCCP continues to evaluate its targeting methodology.
http://www.dol.gov/ofccp/regs/compliance/faqs/emprfaqs.htm
HAS OFCCP DEVELOPED PROCEDURES FOR CONDUCTING A DESK AUDIT OF A CONTRACTOR'S COMPENSATION PRACTICES?
Each of OFCCP's regional offices uses the same basic procedures for conducting a desk audit review of a contractor's compensation practices. Generally speaking, during a desk audit, the agency will examine the following three criteria when evaluating a contractor's compensation practices:
* Whether, for at least one pay division, there is a specified difference in average compensation between the groups being compared and, if so, whether at least one group appears to be adversely affected.
* After combining the pay divisions meeting the above condition, whether the number of employees in the non-favored group is greater than a specified number and represents a specified percentage of the total employees in that group in the overall workforce.
* Whether the overall percentage of the group most adversely affected in the combined pay divisions is larger, by a specified amount, than the overall percentage of the other groups adversely affected.
The specific thresholds used in each of the three criteria above are not static, but rather are subject to change as OFCCP continues to evaluate its targeting methodology.
OFCCP updating their FAQ's for 2010 with important news
The OFCCP has added two new responses under the Frequently Asked Questions part of their website that Federal contractors need to be aware of. See text below from OFCCP website under http://www.dol.gov/ofccp/regs/compliance/faqs/csalfaqs.htm
IS IT POSSIBLE FOR ESTABLISHMENTS OTHER THAN THOSE LISTED ON THE CSAL TO BE SCHEDULED FOR A COMPLIANCE EVALUATION DURING THE SCHEDULING CYCLE?
Yes. The list of establishments provided with the CSAL is not all-inclusive for a variety of reasons. For example, company establishments that are not clearly associated with a contractor's parent organization through currently-available EEO-1 Reports, such as those that have been acquired through recent mergers, are not included on the CSAL. In addition, the CSAL does not identify whether an establishment of a contractor has been selected for evaluation because of a contract award notice, a directed review, as a result of conciliation agreement monitoring or an individual complaint, or as part of the agency's Corporate Management Compliance Evaluation (CMCE) or Functional Affirmative Action Plan (FAAP) initiatives.
Back to Top Back to Top
IS THERE A LIMIT ON THE NUMBER OF ESTABLISHMENT EVALUATIONS THAT CAN BE SCHEDULED PER CONTRACTOR?
No. Beginning in FY 2010, there is no limit on the number of compliance evaluations that OFCCP may schedule or conduct per contractor during a fiscal year.
IS IT POSSIBLE FOR ESTABLISHMENTS OTHER THAN THOSE LISTED ON THE CSAL TO BE SCHEDULED FOR A COMPLIANCE EVALUATION DURING THE SCHEDULING CYCLE?
Yes. The list of establishments provided with the CSAL is not all-inclusive for a variety of reasons. For example, company establishments that are not clearly associated with a contractor's parent organization through currently-available EEO-1 Reports, such as those that have been acquired through recent mergers, are not included on the CSAL. In addition, the CSAL does not identify whether an establishment of a contractor has been selected for evaluation because of a contract award notice, a directed review, as a result of conciliation agreement monitoring or an individual complaint, or as part of the agency's Corporate Management Compliance Evaluation (CMCE) or Functional Affirmative Action Plan (FAAP) initiatives.
Back to Top Back to Top
IS THERE A LIMIT ON THE NUMBER OF ESTABLISHMENT EVALUATIONS THAT CAN BE SCHEDULED PER CONTRACTOR?
No. Beginning in FY 2010, there is no limit on the number of compliance evaluations that OFCCP may schedule or conduct per contractor during a fiscal year.
New Recommended Resource for Federal Contractors
There are very few comprehensive resources out there regarding Affirmative Action Planning for Federal contractors. Biddle Consulting Group has been recommending one book for many years and there is a new edition out there that we believe every contractor should own. Bill Truesdell is the author of Secrets of Affirmative Action Compliance and it is an excellent resource for quick access to all the requirements that contractors need to know. AAP's, Definition of an Applicant, EEO-1 and Vets-100, it's all there.
See details below:
You can purchase this book directly from us or from Bill's website:
www.management-advantage.com
Details are here:
THE #1 AAP REFERENCE FOR FEDERAL CONTRACTORS!
The 8th Edition was featured as Member's Choice by The SHRM Store in August 2009 and on SHRM's Best Seller List in September AND November 2009 How to write your plan narrative, prepare your statistical reports and manage a compliance review, all in one concise reference book. The latest (2010) on federal regulations from the U.S. Department of Labor.
Author: William H. Truesdell, SPHR
If you are a vendor or supplier to the government, you may be required to have a written Affirmative Action Program. If you fit into any of these categories, you need the new ninth edition of
Secrets of Affirmative Action Compliance
* 50 employees and $50,000 or more in total contracts.
* Any bank, regardless of employee number, with $1.00 in the federal reserve system.
* Any employer, regardless of employee number, which is a transfer agent for U.S. Savings Bonds. (Credit Unions, often.)
* Any construction contractor with federally assisted construction contracts in excess of $10,000.
* Receive a contract or subcontract (at any tier) valued at $1 or more from the American Recovery and Reinvestment Act (ARRA).
Federal regulations have changed! If your current AAP doesn't address these new requirements, you will not be in compliance. (41 C.F.R. 60 changes)
You need our book ...
Secrets of Affirmative Action Compliance
* Easy to use book with numerous forms and checklists.
* Gives you federal regulation requirements and then shows you how to meet them.
* It couldn't be simpler...or less expensive.
* Save thousands of dollars by preparing your own AAP documents.
* Save thousands of dollars by preparing your own 16-step construction contract affirmative action specifications.
* Order your copy today!
If your organization has chosen to do business with federal, state or local governments, this book is going to be invaluable to you. Many federal government contractors (vendors and suppliers) are required to have a written Affirmative Action Program for minorities and women. Two additional written AAP documents are required for Disabled and for Veterans. This book shows you how to meet all three requirements in one document. Use the checklists to conduct your own internal compliance review so you can detect problems before they are pointed out by compliance officials. Use the diagrams, flow charts and forms to both understand and implement your own affirmative action programs as you determine they are necessary. Help your organization meet legal requirements.
See details below:
You can purchase this book directly from us or from Bill's website:
www.management-advantage.com
Details are here:
THE #1 AAP REFERENCE FOR FEDERAL CONTRACTORS!
The 8th Edition was featured as Member's Choice by The SHRM Store in August 2009 and on SHRM's Best Seller List in September AND November 2009 How to write your plan narrative, prepare your statistical reports and manage a compliance review, all in one concise reference book. The latest (2010) on federal regulations from the U.S. Department of Labor.
Author: William H. Truesdell, SPHR
If you are a vendor or supplier to the government, you may be required to have a written Affirmative Action Program. If you fit into any of these categories, you need the new ninth edition of
Secrets of Affirmative Action Compliance
* 50 employees and $50,000 or more in total contracts.
* Any bank, regardless of employee number, with $1.00 in the federal reserve system.
* Any employer, regardless of employee number, which is a transfer agent for U.S. Savings Bonds. (Credit Unions, often.)
* Any construction contractor with federally assisted construction contracts in excess of $10,000.
* Receive a contract or subcontract (at any tier) valued at $1 or more from the American Recovery and Reinvestment Act (ARRA).
Federal regulations have changed! If your current AAP doesn't address these new requirements, you will not be in compliance. (41 C.F.R. 60 changes)
You need our book ...
Secrets of Affirmative Action Compliance
* Easy to use book with numerous forms and checklists.
* Gives you federal regulation requirements and then shows you how to meet them.
* It couldn't be simpler...or less expensive.
* Save thousands of dollars by preparing your own AAP documents.
* Save thousands of dollars by preparing your own 16-step construction contract affirmative action specifications.
* Order your copy today!
If your organization has chosen to do business with federal, state or local governments, this book is going to be invaluable to you. Many federal government contractors (vendors and suppliers) are required to have a written Affirmative Action Program for minorities and women. Two additional written AAP documents are required for Disabled and for Veterans. This book shows you how to meet all three requirements in one document. Use the checklists to conduct your own internal compliance review so you can detect problems before they are pointed out by compliance officials. Use the diagrams, flow charts and forms to both understand and implement your own affirmative action programs as you determine they are necessary. Help your organization meet legal requirements.
Monday, January 25, 2010
Contractor Concern Submitted to the OFCCP re: Audits
To BCG Blog community:
In the most recent OFCCP listening session, a caller presented a question to the OFCCP about the seemingly lengthy duration of audits. While OFCCP did not commit to anything in regards to changing how they run their desk audits, the concern from the contractor was one that was shared by many in the EEO community. The caller made several good points regarding the lack of information available regarding the status of open audits. Some of the concerns stated (and not stated) are:
[*]Audits frequently last as long as six months and even more in some cases years
[*]Oftentimes the contractor has no idea if/when they may receive a call from OFCCP regarding their audit. It is not uncommon for six months or a year to go buy with no contact at all
[*]Contractors are hesitant to call and ask about the status of an audit for fear of "opening a can of worms"
[*]Audits that stay open for a long period of time can often allow OFCCP to request updated data or even a new plan if enough time has passed. This does not seem fair to the contractor
[*]At times contractors do call OFCCP only to learn that their audit has been passed to another OFCCP office without notice
[*]Sometimes audits are closed without notice being given to the contractor, and the contractor learns of the closure through the Pre-Award list
The caller suggested that it would seem reasonable for the OFCCP to provide an administrative closure to an audit that is open for an extended period of time without any communication from OFCCP. There was also some discussion about how it would be useful if OFCCP had more detailed protocols surrounding how audits are handled.
It should be noted that OFCCP can provide plenty of reasons why audits stay open and why they have to ask a lot of questions because it is common for contractors to struggle to respond to detailed questions about their data and OFCCP often has to wait for data to be resubmitted and therefore reviewed in detail. However, I view this as a separate issue than desk audits where audit status is unknown for long periods of time.
Regardless, it seems reasonable that contractors should want to close a desk audit as soon as possible. In today's business world, EEO professionals and HR staff have many duties to carry out, and when OFCCP extends audit activity, it can be a significant strain on a contractor's resources.
BCG would very much like to hear more from the contractor community about their experiences with extended audits and about the level of interest there is in pushing for more transparency/accountability from OFCCP. We have posted this discussion in the BCGi Forum under EEO Regulations. If you have not joined the Forum community please go to this free site and select Register in the uppoer right portion of the screen. If you need any help please e-mail staff@biddle.com for assistance.
www.bcginstitute.org/forums
Chris Lindholm
Director
Biddle Consulting Group
In the most recent OFCCP listening session, a caller presented a question to the OFCCP about the seemingly lengthy duration of audits. While OFCCP did not commit to anything in regards to changing how they run their desk audits, the concern from the contractor was one that was shared by many in the EEO community. The caller made several good points regarding the lack of information available regarding the status of open audits. Some of the concerns stated (and not stated) are:
[*]Audits frequently last as long as six months and even more in some cases years
[*]Oftentimes the contractor has no idea if/when they may receive a call from OFCCP regarding their audit. It is not uncommon for six months or a year to go buy with no contact at all
[*]Contractors are hesitant to call and ask about the status of an audit for fear of "opening a can of worms"
[*]Audits that stay open for a long period of time can often allow OFCCP to request updated data or even a new plan if enough time has passed. This does not seem fair to the contractor
[*]At times contractors do call OFCCP only to learn that their audit has been passed to another OFCCP office without notice
[*]Sometimes audits are closed without notice being given to the contractor, and the contractor learns of the closure through the Pre-Award list
The caller suggested that it would seem reasonable for the OFCCP to provide an administrative closure to an audit that is open for an extended period of time without any communication from OFCCP. There was also some discussion about how it would be useful if OFCCP had more detailed protocols surrounding how audits are handled.
It should be noted that OFCCP can provide plenty of reasons why audits stay open and why they have to ask a lot of questions because it is common for contractors to struggle to respond to detailed questions about their data and OFCCP often has to wait for data to be resubmitted and therefore reviewed in detail. However, I view this as a separate issue than desk audits where audit status is unknown for long periods of time.
Regardless, it seems reasonable that contractors should want to close a desk audit as soon as possible. In today's business world, EEO professionals and HR staff have many duties to carry out, and when OFCCP extends audit activity, it can be a significant strain on a contractor's resources.
BCG would very much like to hear more from the contractor community about their experiences with extended audits and about the level of interest there is in pushing for more transparency/accountability from OFCCP. We have posted this discussion in the BCGi Forum under EEO Regulations. If you have not joined the Forum community please go to this free site and select Register in the uppoer right portion of the screen. If you need any help please e-mail staff@biddle.com for assistance.
www.bcginstitute.org/forums
Chris Lindholm
Director
Biddle Consulting Group
Tuesday, January 19, 2010
New Training Classes Offered by Biddle Consulting Group
New training classes offered by Biddle Consulting Group.
The Biddle Consulting Group will be presenting a three-part, live
webinar series on the basics of Affirmative Action Planning, also known
as AAP 101 with the last session being dedicated to the use of AutoAAP.
The class is designed for the beginner or for the trained professional
who needs a refresher covering the basic requirements for being
compliant with Executive Order 11246, as amended; Section 503 of the
Rehabilitation Act of 1973, as amended; and the Vietnam Veterans'
Readjustment Assistance Act of 1974, as amended, 38 U.S.C. 4212.
The training presentation will be held in three sessions. Part I and II
will focus on AAP methodology and Part III will focus solely on
utilizing AutoAAP to create Affirmative Action Plans. Each web session
will run for two hours. The fee is $149 covering all three sessions, or
$99 for the first two sessions (excluding Part III). Each session will
begin at 11am PST/2pm EST. The dates for the training will be January 28
(Part I), February 4th (Part II) and February 11, 2010 (Part III).
If you are interested in signing up for these courses, please contact
Nancy Tipton at ntipton@biddle.com or 1-916-294-4250 x175.
The Biddle Consulting Group will be presenting a three-part, live
webinar series on the basics of Affirmative Action Planning, also known
as AAP 101 with the last session being dedicated to the use of AutoAAP.
The class is designed for the beginner or for the trained professional
who needs a refresher covering the basic requirements for being
compliant with Executive Order 11246, as amended; Section 503 of the
Rehabilitation Act of 1973, as amended; and the Vietnam Veterans'
Readjustment Assistance Act of 1974, as amended, 38 U.S.C. 4212.
The training presentation will be held in three sessions. Part I and II
will focus on AAP methodology and Part III will focus solely on
utilizing AutoAAP to create Affirmative Action Plans. Each web session
will run for two hours. The fee is $149 covering all three sessions, or
$99 for the first two sessions (excluding Part III). Each session will
begin at 11am PST/2pm EST. The dates for the training will be January 28
(Part I), February 4th (Part II) and February 11, 2010 (Part III).
If you are interested in signing up for these courses, please contact
Nancy Tipton at ntipton@biddle.com or 1-916-294-4250 x175.
New EEOC Report on Charges in 2009
The OFCCP and EEOC are reaching new heights in dollars collected under discrimination and job bias claims. See below for the EEOC 2009 report.
From www.eeoc.gov
Job Bias Charges Approach Record High in Fiscal Year 2009, EEOC Reports
Commission Obtains $376 Million for Victims of Discrimination
WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) today announced that 93,277 workplace discrimination charges were filed with the federal agency nationwide during Fiscal Year (FY) 2009, the second highest level ever, and monetary relief obtained for victims totaled over $376 million. The comprehensive enforcement and litigation statistics for FY 2009, which ended Sept. 30, 2009, are posted on the agency’s web site:
http://www.eeoc.gov/eeoc/statistics/enforcement/index.cfm.
From www.eeoc.gov
Job Bias Charges Approach Record High in Fiscal Year 2009, EEOC Reports
Commission Obtains $376 Million for Victims of Discrimination
WASHINGTON – The U.S. Equal Employment Opportunity Commission (EEOC) today announced that 93,277 workplace discrimination charges were filed with the federal agency nationwide during Fiscal Year (FY) 2009, the second highest level ever, and monetary relief obtained for victims totaled over $376 million. The comprehensive enforcement and litigation statistics for FY 2009, which ended Sept. 30, 2009, are posted on the agency’s web site:
http://www.eeoc.gov/eeoc/statistics/enforcement/index.cfm.
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