Monday, October 4, 2010

Bringing back the EO Survey?

The U.S. Department of Labor (DOL) is interested in bringing back the Equal Opportunity (EO) Survey even if the Paycheck Fairness Act (PFA), which requires one half of federal contractors to receive the EO survey yearly, is not overhauled. On the other side, the Office of Federal Contract Compliance Program (OFCCP) is seeking input from stakeholders on how to improve the Survey and what new data should be implemented on the upcoming version. Though nothing is certain, rather than asking “If” the survey is coming back, we should be asking “When” and in what form; the original or a modified version.

The purpose of the EO survey, as stated in CFR 41 60-2.18 (a) was to “provide the OFCCP compliance data early in the compliance evaluation process, thus allowing the agency to more effectively identify contractor establishment for further evaluation.” The survey first came out during the Clinton administration but during the Bush administration, OFCCP stopped using the EO Survey due to the results of a study by Abt Associates Inc. that revealed that the survey was not a valid tool for predicting systemic discrimination. Though this study was criticized by many as being flawed, the EO survey was still discontinued.

The survey itself was required to be completed and submitted back to the OFCCP within 45 days of notice. It was estimated to take about 21 hours (on average), but often took double or even triple that time. Federal contractors with multiple locations were struggling to put this information together while working on their Affirmative Action Plans as well. Imagine having 500 sites and being required to complete at least 250 (50%) surveys on those sites in 45 days.

Some of the flaws that were found on the original survey included: survey did not ask for data information on part-time employees even though Affirmative Action Plans do include this information. Also, it asked contractors to identify the full/part time status of their applicants, though most contractors rarely keep track of FT/PT applicant status.

Furthermore, the definition of an applicant is outdated and the new internet applicant regulations need to be employed.

Finally, the compensation section has garnered some special concern; the survey required compensation data by the old (9) EEO category or affirmative action job group, rather than the new (10) EEO categories. The issue becomes apparent when analyzing the compensation data because it is without a doubt that a CEO will significantly earned more than an office supervisor. But under the old rubric both are considered EEO 1 – Officials and Managers. Many have proposed aggregating the EO survey over the new 10-category system in the same way the 2007 overhaul of the EEO-1 did.

Announced September 28th by Secretary of Labor Hilda L. Solis, the DOL needs to collect more data to ensure fair and equitable pay, especially in regards to women. She did not state what additional data they would like, but it may mean additional recordkeeping on the part of those required to fill out the survey.
There is little question about if it’s coming back, but when, and what this means for federal contractors. This brings us back to our original question: what changes could the revised EO survey bring to federal contractors? Once revised the EO survey can become a very useful tool. OFCCP could likely throw out their current 16 factor algorithm that helps them pinpoint who and what location to audit. Meaning that if a federal contractor’s survey looks good, and audit can be avoided. Let’s just hope that this time, the average time to complete this entire process is consistent with what is stated and a suitable time frame will be provided.

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