It is by now conventional wisdom that the OFCCP is stepping up enforcement activities that will generate record breaking financial remedies for affected females and minorities which will impact all federal contractors.
This past week Patricia Shiu, Director, Office of Federal Contract Compliance Programs outlined a draft of the agencies Strategic Business Plan which lays out the direction of OFCCP through 2016. Director Shiu stated that “it is a new day at OFCCP” and made it quite clear that this administration and the OFCCP’s Strategic Plan’s goal is to engage federal contractors with new burdensome processes to demonstrate compliance.
The Strategic Business Plan laid out two primary goals as follows;
- Prepare workers for good jobs and ensure fair compensation. In order to meet this portion of the Strategic Business Plan OFCCP looks to:
a. Increase workers’ incomes and narrow wage and income inequity; and
b. Help workers who are out of the labor market or in low-wage jobs find a path into middle class jobs.
2. Assure fair and high-quality work-life environments. In order to meet this portion of the Strategic Business Plan OFCCP looks to:
a. Break down barriers to a fair and diverse workplace so that every worker’s contribution is respected; and
b. Ensure workers have a voice in the workplace.
Contractors can expect an increased scrutiny of their compensation systems. In the past years we have seen OFCCP audits focus on systemic pay discrimination. Future audits will focus on both systemic and individual pay disparities. The message here is that contractors must get very serious about conducting meaningful analysis and proactively implementing pay adjustments were unjustified pay disparities exist. These adjustments need to begin now as OFCCP, as part of their audit process, intends to request compliance documentation that includes evidence of “self-audits” and the corrective process used to remedy pay issues. This could include proof of back pay and make whole relief to the affected individuals.
The draft of the Strategic Business Plan clearly outlines the agencies increased focus on a contractors’ selection process and emphasis on outreach to an hiring, promoting and training veterans and individuals with disabilities.
The strategic plan also outlines the agencies intent to conduct corporate wide multi-establishment audits. Though it is not clear as to how these reviews will be conducted, it will increase the burden of these multi-establishment entities to prepare for several audits at the same time.
Adding to their enhanced presence, the OFCCP will reincarnate the EO Survey, though not in its original form. The new version will be used to enhance the current targeting method used by OFCCP.
Of importance is the OFCCP new focus on repeat offenders. Contractors that have been found to be non-compliant will be faced with follow-up evaluations that will be designed to ensure the implementation of corrective policies and procedures. Contractors that have had negative findings during the audit process will be faced with more rigorous reviews during their conciliation progress reporting periods and all future audits.
To better prepare you for what an audit may look like under the Directorship of Patricia Shiu, join our webinar on April 27th at 10:00 AM PDT or May 5, 2010 at 10 AM PDT