Companies Brace for the Office of Federal Contract Compliance Programs' List of Compliance Evaluations

Workforce Management
September 2008

Self-audits can provide protection from the dreaded on-site investigations that occur when the agency suspects discriminatory hiring practices.
By Fay Hansen

October 1 marks the beginning of a new annual enforcement cycle for the U.S. Office of Federal Contract Compliance Programs as the agency unfurls a long list of companies selected for compliance evaluations.
The last cycle, which covered nearly 5,000 employers, ended with a series of million-dollar settlements against companies that could not adequately defend their hiring practices against charges of systemic discrimination.
Companies selected for the new round of evaluations may see nothing more than a desk audit of their hiring procedures. But such an audit could evolve into a highly invasive on-site investigation, with federal agents conducting face-to-face interviews with hiring managers who must defend their selection criteria.
Agency staff have consistently rejected any criteria that may be subjective or "tainted" by the potential for systemic discrimination. In fiscal year 2007, systemic-discrimination charges accounted for 98 percent of the agency’s record $51.7 million in back-pay collections.
The Office of Federal Contract Compliance Programs defines systemic discrimination as a pattern or recurring practice of discrimination against a protected group.
"The OFCCP is now focused on becoming the premier agency for systemic discrimination," says Julia Judish, counsel, employment and labor law, at Pillsbury Winthrop Shaw Pittman in Washington. "The EEOC’s [Equal Employment Opportunity Commission’s] focus is on individual charges. By contrast, the OFCCP is looking to put its limited resources to the best use by concentrating on federal contractors with systemic discrimination.
"The OFCCP has made it clear that it wants to pursue big cases."
Self-audit protection Employers on the OFCCP compliance list receive a letter stipulating that the agency will conduct an evaluation. The list is based on a mathematical analysis of the Employer Information Report (EEO-1) forms that companies submit as part of their federal contract obligations.
"You can’t predict whether you will receive a letter, so aim as if you might and attempt to limit the impact to a desk audit," Judish advises.
Every federal contractor should conduct regular self-audits in anticipation of a compliance review. [To read the entire story, go to: http://www.workforce.com/section/06/feature/25/77/81/index.html ]