Monday, August 23, 2010

Administrative law judge rules in favor of company in OFCCP compliance review dispute

Lexology
Ford & Harrison LLP
Bennet Alsher, Linda Cavanna-Wilk, Jade M. Cobb and Karen Tyner
USA August 5 2010

USA August 5 2010
On July 23, 2010, Administrative Law Judge Larry W. Price issued a significant ruling that clearly establishes the temporal scope of an OFCCP compliance review during the desk audit phase.
Facts
On July 13, 2007, the OFCCP sent Frito-Lay a Scheduling Letter stating that its Dallas Baked Snack facility had been selected for a compliance review. In the letter, the OFCCP asked Frito-Lay to submit applicant and hire data for the 2006 Affirmative Action Plan year. It also asked for data for the first half of 2007 if Frito-Lay received the letter six months or more into its current AAP year. The Frito-Lay AAP was effective January 1, 2007; thus, the Company sent the OFCCP hire and applicant data for 2006 and the first six months of 2007. The OFCCP later requested data for the second half of 2007 and for data dating back to July 13, 2005. Frito-Lay complied with the OFCCP's request.
The OFCCP analyzed hiring at the Dallas Baked Snack facility and alleged the analysis showed an adverse impact in Frito-Lay's hiring of women from June 13, 2006 to December 31, 2007. The OFCCP then alleged it was necessary to determine whether the adverse impact continued after December 31, 2007. The OFCCP sent Frito-Lay a request on November 10, 2009, for applicant and hire data from January 1, 2008 to October 31, 2009. Frito-Lay refused to comply with the OFCCP's request and the OFCCP subsequently filed an administrative complaint.

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