Employment Law Blog

News, trends and analysis in employment law and HR

Mar 01, 2018

OFCCP to adjust compliance evaluation process in 2018

Affirmative Action 

The Office of Federal Contract Compliance Programs (OFCCP) will “rebalance the agency’s mix of scheduling and conducting” affirmative action audits in Fiscal Year 2018, according to the newly released FY 2017 Financial Report from the U.S. Department of Labor (DOL). The report acknowledges that since 2009, the OFCCP gradually conducted fewer and fewer audits because it focused on complex pay discrimination cases. The agency closed only 1,142 audits in FY 2017, out of nearly 200,000 federal contractor establishments, but in the process collected a whopping $23.9 million in FY 2017 for 11,653 workers. Although the dollar figure is impressive, relatively few federal contractors were subject to scrutiny by the OFCCP. The report says that in FY 2018, the agency will seek to be “efficient and thorough, and appropriately transparent.” The OFCCP also intends to exert greater efforts to encourage voluntary compliance among federal contractors, and to provide compliance assistance.
Tips: Since January 1, 2011, the OFCCP has practiced “Active Case Enforcement” which means it conducts a full desk audit of every contractor selected for review. The DOL’s report indicates that a new directive is likely to be announced in 2018. We anticipate this will result in more compliance reviews, if agency personnel begin with less in-depth initial assessments and then only dig deeper if they spot red flags. Questions? Contact your Vigilant affirmative action representative. Need help with affirmative action? Check out our affirmative action services for federal contractors.