The OFCCP is Coming!
The OFCCP is Coming!
Tim Orellano, PHR
President – The Human Resources Team
March 1, 2008
Today, Paul Revere might spread a very different message. Just as his neighbors were
unaware of the advancing British army, many current contractors remain blissfully
unaware of the new OFCCP initiatives and audit strategies. Under the generalship of
Charles James, OFCCP mustered their forces, locked and loaded, and THEY ARE
Charles James, Deputy Assistant Secretary, DOL ESA OFCCP, believes that systematic
discrimination is “standard operating procedure” in many organizations, and the OFCCP
is ready to right that perceived wrong. His plans for aggressive action include
“unleashing my experts on you” to quote part of his recent remarks. In 2006 and 2007,
the OFCCP has collected over $51 million dollars per year, a 78% increase from 2001.
That’s your money. But the price likely exceeds a multiple of that number if you factor in
the legal fees, consulting fees and man hours lost to answering OFCCP requests.
Luckily, like the residents of Lexington, you have time to prepare and save yourself a
significant amount pain, suffering and money. Start today. In October 2007, over 4,000
facilities were identified for the audit scheduling list. This month the OFCCP announced
completion of the second audit scheduling list for 2008--approximately 5,000 facilities.
Will you receive a special “greetings letter” from OFCCP? Are you ready for the audit
Federal contractors and subcontractors must take the aggressive agenda of the OFCCP
seriously. Gone are the days when the OFCCP worked with contractors to bring them
into compliance. Today’s OFCCP forcefully applies the new, strategically crafted
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definition of an “Internet applicant” and compensation standards. Their quest? Pattern
and practice discrimination. It’s about the money—your money.
Can you hear Paul Revere? The OFCCP is Coming! The OFCCP is Coming! Minimize
your risk and prepare yourself before the OFCCP knocks on your door for your money.
Consider the short list for audit readiness.
1. Advise leaders within your organization and particularly the President and/or CEO’s
office to watch out for any letters from the OFCCP so you can immediately begin to
focus your attention on compliance and the implementation components of your
2. Take the definition of an Internet applicant, compensation analyses and test validation
seriously. If you haven’t changed your processes since the new rules were released in
2006, it’s time to revisit these items. You absolutely need to make some decisions
about how your company complies with the new rules of what defines an “applicant”
and implement a consistent tracking process.
3. Document, Document, Document. OFCCP guidance asserts that contractors must
keep any and all written records pertaining to employment decisions for two years
from the date of the making (or action if it occurs later). They mean every note,
every scrap of paper, everything. In practice, document the reasons you made the
decisions you did--Particularly the reasons for not hiring all those who expressed
interest in employment. Then destroy those documents as soon as the law allows.
Establish a document destruction policy and follow it.
4. Narrow your applicant pool. Use the OFCCP definition of an Internet applicant to
your advantage. Narrow the pool of applicants by implementing specific dispositions
at each stage of the recruiting and hiring process. Keep your applicant and hire logs
up to date. Ensure hiring process leverage the new rules. Conduct adverse impact
analyses of your hiring decisions to determine trends and problem areas.
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5. Analyze compensation. Conduct compensation analyses using the OFCCP 2-30-30
trigger test to determine if there are “red flag” pay disparities. Review the analyses and
address potential vulnerabilities prior to OFCCP involvement. Protect the
confidentiality of the compensation analysis under attorney client privilege.
6. Contact the local state employment agencies. List eligible job openings with local state
employment offices in your area. Use the OFCCP link to obtain email address for
appropriate employment service. http://www.jobbankinfo.org/
7. Contact temporary staffing agencies. Staffing agencies do not relieve contractor of their
obligation to provide applicant data and to list the jobs with the state employment
agencies. Contractors should ensure their temporary agencies are maintaining adaquate
8. Get Expert Advice. Executive Order 11246 and the aggressive agenda of the OFCCP
are here to stay. Our business is built on our niche expertise and we’re happy to help.
• Prepare the current and past AAP plans.
• Conduct a compliance audit of your applicants, hires, promotions and termination
• Conduct a compensation analysis to identify potential pay disparities.
• Explain, in detail, how the Executive Orders impact your HR practices and help you
comply with the law while enhancing your business practices.
The OFCCP is intimidating. They intend to collect more money this year than they did last.
They want your money. Be prepared.
If I can provide additional information or assist you in anyway, please call me
501-227-9373 or drop me an email at email@example.com
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