Labor ruling adds to burden on federal contractors in audits

Lexology Ballard Spahr LLP Amy L. Bashore and Constantinos G. Panagopoulos USA May 15 2012 In a decision likely to add to the burden and length of audits for many federal contractors, the Administrative Review Board of the U.S. Department of Labor (ARB) has ordered Frito-Lay Inc. to produce an additional two years’ of data on its affirmative action plan (AAP) as part of an expanded investigation in an audit that began in 2007. The ARB’s Final Administrative Order, issued May 8, 2012, requires Frito-Lay to provide the Office of Federal Contract Compliance Programs with two years’ of AAP data post‑dating the Scheduling Letter in the Desk Audit. Full Story: http://www.lexology.com/library/detail.aspx?g=be89bf75-65f7-4a5a-9269-db02fa2cf5a3&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Other+top+stories&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2012-05-22&utm_term=

OFCCP May Request Data That Post-Dates Scheduling Letter, Appeal Board Rules

Costangy, Brooks and Smith LLP 5/16/2012 The Office of Federal Contract Compliance Programs has regulatory authority to request data beyond the date of a scheduling letter where the request is motivated by a "deficiency," such as discriminatory adverse impact, discovered during a compliance review. The ruling, in OFCCP v Frito-Lay, Inc., was made last week by the federal Administrative Review Board, which hears appeals in administrative cases involving the U.S. Department of Labor. ARB decisions can be appealed to the federal courts. Full Story: http://www.jdsupra.com/post/documentViewer.aspx?fid=909a0f70-e000-4f5e-b9b4-390eadbd5bc2

Manheim Companies Agree to Voluntary Debarment to Settle OFCCP Complaint

Outsolve!


Overview of Article. On September 13, 2011, the U.S. Department of Labor (“DOL”) Administrative Review Board signed an Order approving a Consent Decree between the DOL’s Office of Federal Contract Compliance Programs (“OFCCP”) and Manheim Auctions, Inc. (“Manheim Auctions”), a wholesale vehicle remarketer, and Manheim Auctions Government Services, LLC d/b/a/Manheim Government Services (“MAGS”), to settle an OFCCP Administrative Complaint against Manheim. In June of this year, a DOL Administrative Law Judge (“ALJ”) ruled that Manheim Auctions, which had more than 50 employees but no Federal contracts, operated as a “single entity” with MAGS, a subsidiary with many Federal contracts but with fewer than 50 employees, therefore resulting in both entities being subject to OFCCP jurisdiction and affirmative action requirements. Under the terms of the Consent Decree, Manheim Auctions and MAG agreed to voluntary debarment.

Full Story: http://www.outsolve-hr.com/newsdetail.aspx?id=109

To see the Administrative Review Board order, click here: http://www.oalj.dol.gov/PUBLIC/ARB/DECISIONS/ARB_DECISIONS/OFC/11_060.OFCP.PDF

Following US Labor Department investigation, administrative law judge finds Bank of America discriminated against African-American job applicants

U.S. Department of Labor
Office of Federal Contract Compliance Programs
OFCCP News Release: [02/02/2010]
Contact Name: Michael D’Aquino, Michael Wald, Jesse Lawder or Mike Volpe
Phone Number: (404) 562-2076 or (202) 693-4676
Release Number: 10-0126-ATL

WASHINGTON — A protracted case that started with a U.S. Department of Labor Office of Federal Contract Compliance Programs (OFCCP) investigation has resulted in an administrative law judge's (ALJ) recommended ruling that Bank of America discriminated against African-American job applicants for entry level positions in Charlotte, N.C., in 1993 and from 2002 to 2005.
"The Labor Department is committed to ensuring that all workers — including African-Americans — are treated fairly by federal contractors in decisions concerning hiring, promotion and compensation," said OFCCP Director Patricia A. Shiu. "Further, contractors cannot use litigation as a means to obstruct OFCCP's ability to conduct its authorized investigations and pursue relief for victims of discrimination."
The ruling by ALJ Linda Chapman arises in a case that began in 1993 when OFCCP requested information from NationsBank (the bank's previous name) as part of a compliance review to determine if the bank, as a federal government contractor, treated its employees without discrimination as required by Executive Order 11246. After OFCCP advised the bank in 1995 of its findings of discrimination, the bank challenged — in federal court — OFCCP's authority to conduct the review as a violation of the bank's Fourth Amendment rights. After the challenge failed and Labor Department attorneys filed an administrative complaint, the bank pursued that challenge in the administrative forum. The department's Administrative Review Board ruled in 2003 that if the bank had consented to the review, there was no Fourth Amendment violation. The ALJ subsequently held that the bank had, in fact, consented, and department attorneys were able to address the discrimination claims.
After that hearing, ALJ Chapman held that the bank intentionally discriminated against African-American clerical, administrative and teller applicants at its Charlotte facility. The ALJ also held that the bank's failure to retain records as required by law without justification did not lessen the statistical disparities found by OFCCP's expert. Chapman now will hold a hearing to determine what remedies should be provided by the bank. After the ALJ issues a recommended decision on a remedy, the case will proceed to the department's Administrative Review Board for a final agency decision.
OFCCP enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA), 38 U.S.C. 4212, that prohibit employment discrimination by federal contractors. The agency monitors federal contractors to ensure that they provide equal employment opportunities without regard to race, gender, color, religion, national origin, disability or veteran status. Information is available at http://www.dol.gov/ofccp/.