OFCCP Introduces New Directive For Audits

Under Charles James, the OFCCP operated under the Active Case Management (ACM) directive that defined general expectations when auditing Federal Contractors. ACM was focused on Systemic Discrimination where OFCCP conducted a high volume of audits as they sought out issues related to Adverse Impact and Compensation. If a plan didn't have any obvious issues at the desk audit stage, the OFCCP would typically close the audit and move on. When Pat Shiu took over the OFCCP in 2009, there was an immediate shift back to the more classical style of OFCCP audit where the agency reverted to reviewing all of their mandates. In December, 2010, the OFCCP put their plan in writing when they introduced the new Active Case Enforcement (ACE)strategy that became effective January 1, 2011. ACE will now take precedence over any previous directive.

The Basics:

- All contractors selected by the FCSS will be required to submit their AAP and supporting documentation to the OFCCP

- A full desk audit will be performed in every evaluation

- Every 25th contractor selected in the FCSS will receive a Full Compliance Review (that includes an on-site audit)

- Indicators of potential discrimination may be of an individual or class

- Every on-site will include a review of EO 13496

- Contractors will be exempt from another audit for 24 months after the audit’s date of closure

To read the directive, click here:

http://www.dol.gov/ofccp/regs/compliance/directives/dir295.pdf