Wednesday, May 19, 2010

Paying attention to the OFCCP Frequently Asked Questions re: Applicants

As the OFCCP continues to delve deeper into the details associated with Federal Contractors' hiring process, it is crucial to pay close attention to all of the recordkeeping requirements and expectations, especially during an audit. Sometimes, if not often, it can be very difficult to make sure that applicant logs contain all of the right data, especially when the definition of an applicant continues to be under the microscope. BCG has found the Frequently Asked Questions on the OFCCP website to be very helpful. However, there are times when a contractor needs to pay close attention to the details because the responses can be confusing and easily misinterpreted.

See two of the responses below from OFCCP about withdrawal from consideration. The real question is, "at what point can you take someone out of the applicant pool if they appear to have withdrawn from the process?" In the original definition immediately below, it would seem clear that once an offer is made, that person is an applicant. While that definition may seem simple (even logical), if a reader looks further down the list of questions they will see that there is a question about rules for considering a candidate to be withdrawn and it appears to say that a rejected offer is a form of withdrawal. Is this a contradiction?

So, to the contractor we suggest caution. BCG would not remove a candidate that received an offer from the overall analyses. Although if dispositioned correctly, the contractor can conduct analyses of applicants to hires as well as applicants to offers and see how they differ. Removing a candidate to whom a contractor made an offer sounds awfully risky to us. Remember, detailed disposition coding is the key to good data and accurate analyses.

Original definition from OFCCP website listed here:
http://www.dol.gov/ofccp/regs/compliance/faqs/iappfaqs.htm

What is the definition of an "Internet Applicant" in the final rule?

An Internet Applicant is defined as an individual who satisfies the following four criteria:

  • The individual submits an expression of interest in employment through the Internet or related electronic data technologies;

  • The contractor considers the individual for employment in a particular position;

  • The individual's expression of interest indicates 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, removes himself or herself from further consideration or otherwise indicates that he or she is no longer interested in the position.


WITHDRAWAL FROM CONSIDERATION:

How can a contractor determine that an individual has indicated that he or she is no longer interested in the position?

The Internet Applicant rule explains that a contractor may conclude that an individual has removed himself or herself from the selection process or has otherwise indicated lack of interest in the position based on the individual's express statement or on the individual's passive demonstration of disinterest. For example, passive disinterest may be shown by:

  • Declining a contractor's invitation for a job interview;

  • DECLINING A JOB OFFER; or

  • Repeatedly failing to respond to a contractor's telephone inquiries or emails asking about his or her interest in a job.


A contractor may also presume a lack of continuing interest based on a review of the job seeker's expression of interest. For example, statements pertaining to (1) the individual's interest in the specific position or type of position at issue, (2) the location of work, or (3) his or her salary requirements, may provide the basis for determining the individual is no longer interested in the position, provided that the contractor has a uniformly and consistently applied policy or procedure of not considering similarly situated job seekers.

Friday, May 14, 2010

Commonly Requested Information by the OFCCP after the Affirmative Action Plan (AAP) is submitted (Desk Audit Stage)

By Nina Le-Tse

In the past, the OFCCP focused on systemic discrimination and when auditing a Federal contractors, they would typically only request additional information if a potential problem area existed in the selection process (hiring) and/or compensation. Under the new Administration, the OFCCP is no longer just looking for systemic discrimination, but for overall compliance with the AA laws and regulations as well. At a local Town Hall meeting in San Francisco, CA, Director Patricia A. Shiu stated that “being a federal contractor is a privilege not a right”; therefore, all Federal contractors are obligated to strictly follow the regulations set forth by the OFCCP.

Biddle Consulting Group has supported more desk and on-site audits in the past six months than in the previous two years. This shows that the new administration is aggressively practicing what they preach.

If you have been audited in the past six months, you may have noticed that the compliance officers are more aggressive in requesting additional data and are reviewing the submitted information in greater detail compared to reviews done by the previous administration. Since the OFCCP is looking for overall compliance, they may request additional information even if the submitted AAP does not show any obvious problem areas. Below is a list of commonly requested information at the desk audit stage under the new administration:


  1. Previous job group summary count (employees at beginning of the year). The OFCCP is trying to reconcile all of the provided data. They may take last year’s representations by job group, add/subtract the transactions that occurred during the evaluation period, and expect that the result of this calculation will be the same or very close to the ending (current AAP) job group summary count. If not, they may assume a lack of data integrity unless the contractor can prove otherwise.

  2. Compensation by job group and/or pay grade. The OFCCP is aware that job groups are very broad and may not be the most appropriate way to analyze compensation. They still request contractors to submit this data by job group and/or pay grade because the bigger data set will yield a better sample size for analysis. Contractors must remind the auditor that item 11 in the audit letter specifically asks contractors to “present this data in the manner most consistent with your current compensation system.” Therefore, it is appropriate to submit this data by job title (or any grouping that is appropriate for your company) assuming that title is the most consistent grouping that represents your current compensation system. It is often inaccurate to analyze the compensation structure at any other level when pay and responsibility is typically unique to individual jobs. Job groups are too broad and include employees in job titles who are typically not similarly situated.

  3. Evidence of job posting to the local State Employment Agency

  4. Good faith outreach and recruitment for veterans and persons with disabilities

    1. Evidence of Veterans and Disabled initiatives

  5. Vets-100 and/or Vets-100A

  6. If there are potential problem areas found in the submitted data (selection practices are the most common), OFCCP may target the company for possible systemic discrimination enforcement, and:

    1. Thoroughly investigate and scrutinize any alleged discriminatory practices with help from the Solicitor of Labor.

    2. May entail producing a number of documents. Narrative of steps for selection process. For each step:

      1. Can applicant be eliminated of identified step(s)?

      2. Describe selection criteria

      3. Name, job, and description of responsibilities

      4. Describe records maintained and length of time kept

      5. Provide applicant flow and selection summary data for race/gender and/or minority/non-minority (e.g., meet minimum qualification, withdrew, interviewed, offered, etc.)

      6. How long are applicants active?

    3. Certify number of applications are consistent with applicant flow provided

Following are some best practices ideas that may help you (as a federal contractor) in closing your audit earlier and easier:

  1. Develop a professional looking affirmative action plan (AAP)

  2. Ensure accuracy and completeness of AAPs, supporting documents, and reports

  3. If any preliminary indications of problem areas are found, research the issue to ensure that it is due to nondiscriminatory and/or job-related reasons

  4. Research applicant flow to ensure only applicants associated with the hires are included

    1. Use the Definition of an Internet Applicant

  5. Analyze compensation to demonstrate equity

  6. Inform the site management and upper level management of OFCCP Compliance Reviews (audit)

  7. Have the following evidences ready prior to submission (if possible):


    1. Outline local recruiting, selection, and hiring processes

    2. Good faith efforts (outreach, recruitment, additional initiatives relate to veterans and disabled, etc.)

    3. Job openings listed with the state employment, local vets representative, etc.


COMPARE Compensation Software Free Training

Many of our clients and friends from the BCG Institute for Workforce Development are taking advantage of Compare 2.0, the all-new version of Biddle Consulting Group's compensation analysis tool. On the BCG Institute site, users can download a free version of COMPARE compensation analysis and reporting software to try out some multiple regression analyses. Fully-licensed users can conduct high-volume, advanced regression analyses and even compute compensation liabilities at the click of a button.

To attend a free introductory session and/or to download the free "light" version of COMPARE, just go the the BCG Institute website and sign up for a free membership.

www.bcginstitute.org

On the BCG Institute site, members can sign up for a free COMPARE training session in addition to registering for our special Compensation 101 webinar being held on Wednesday, May 19th.

Dates for free COMPARE training:
May 25, 2010
September 30, 2010
December 14, 2010

Friday, May 7, 2010

DOL Releases New Website To Help Contractors Connect to Workers With Disabilities

Federal contractors have a new resource to identify the Federal disability nondiscrimination laws that may apply to their organization and their responsibilities under them.

See the Press Release and weblinks below:

News Release:
http://www.dol.gov/opa/media/press/asp/oasp20100562.htm

elaws - employment laws assistance for workers and small businesses - Disability Nondiscrimination Law Advisor:

http://www.dol.gov/elaws/odep.htm

Brief:
New online tool helps further equality and full access for people with disabilities

May 4, 2010 — The U.S. Department of Labor today unveiled a new tool to help America's employers ensure their employment policies and practices do not discriminate against qualified individuals with disabilities.

"Today, we made it easier for employers of all sizes to access the talents of the 36 million Americans with disabilities," said Assistant Secretary of Labor for Disability Employment Policy Kathleen Martinez. "By providing this interactive and easy-to-use online tool, both workers and employers can readily access and understand their rights and responsibilities under our federal disability nondiscrimination laws."

Tuesday, May 4, 2010

New DOL Website Shows OFCCP Enforcement Statistics

Recently, the Department of Labor introduced a website that allows a user to see the results of OFCCP audits from 2004 through 2009. For the first time, anyone can lookup the results of an OFCCP audit and see if a Federal Contractor was identified as having a Notice of Compliance, a Financial Agreement or a Conciliation Agreement. In the download-able spreadsheets, users can see a company name, address, audit date and more. Contractors can be identified as having an issue associated with a Written AAP, Past Performace, Recordkeeping and Support, Recruitment, Denial of Records/Access, Hires, Promotions, Terminations, Selection/Testing, Salary, Medical Screening, Accomodation and Systemic Discrimination.

See the website here:

http://ogesdw.dol.gov/index.php

Go to the search page and select OFCCP as the department and then select a state to view.

The statement on the website from OFCCP is below:


Office of Federal Contract Compliance Programs (OFCCP)

The OFCCP administers and enforces three legal authorities that require equal employment opportunity: Executive Order 11246, as amended; Section 503 of the Rehabilitation Act of 1973, as amended; and the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended, 38 U.S.C. 4212. Taken together, these laws prohibit discrimination and require Federal contractors and subcontractors to take affirmative action to ensure that all individuals have an equal opportunity for employment, without regard to race, color, religion, sex, national origin, disability or status as a Vietnam era or special disabled veteran.


The data provided by OFCCP for the enforcement database consists of completed compliance evaluations and complaint investigations, conducted by the OFCCP, since FY 2004. This data provides information on the OFCCP’s efforts to enforce the EEO-mandated laws and regulations within the Federal Contractor Community (those companies which have been provided government contracts). The data will be updated on a Monthly basis.

Wednesday, April 14, 2010

Spring CSAL released by OFCCP

The updated Corporate Scheduling Announcement Letter (CSAL) has been released by OFCCP. The letter identifies contractor locations that can expect a desk audit in the coming months. The Spring letter is the same as previous letters and is signed by Patricia Shiu.

Each letter is simply addressed to the job title of "Chief Executive Officer" of the corporation and it does not have a specific person's name.

For Q&A about the letter copy and paste the link below into your browser.

http://www.dol.gov/ofccp/regs/compliance/faqs/csalfaqs.htm

Friday, April 9, 2010

National ILG Conference for Affirmative Action, Don't Miss It!!

The Arizona, Las Vegas and Hawaii ILGs are privileged to host the 28th Annual Industry Liaison Group National Conference at the beautiful new Red Rock Resort in Summerlin / Las Vegas, Nevada August 3-6, 2010.

If you have ever attended one of the annual ILG Conferences on affirmative action,
you know how valuable the national conference is! Every attendee will walk away with
a wealth of knowledge that they did not have access to before!

If you haven't had the opportunity to attend one of the annual ILG conferences in
the past...then this is the one you don't want to miss!

Contractors will meet the new administration at OFCCP for the first time
with a keynote address from the new Director, Patricia Shiu.

Presentation topics will include: Compensation Analysis, Construction,
ARRA, Statistics, AAP Basics, Hiring Veterans, and much more!

Special functions every evening include receptions, regional meetings,
and a Gala Event.

All of the conference details ... and more are now available on the
2010 ILG National Conference website: http://www.ilgnvegas2010.com.

See you there!