Hot News From
the OFCCP!
By Cara
Crotty,
Columbia,
SC Office
August 14, 2006
The 24th Annual Industry Liaison Group National
Conference was held in Phoenix, Arizona last week, and as usual,
Constangy had representatives in attendance to learn the latest
from officials at the Office of Federal Contract Compliance Programs. Charles
James, OFCCP Director, was a keynote speaker and offered guidance
to federal contractors.
Dynamic Change
Citing the recent changes on Internet applicants
and compensation analyses, James noted that the OFCCP is in a
time of “dynamic change.” Although the OFCCP
is sailing into “uncharted waters” and “sometimes
has more questions than answers,” the Agency is forging
ahead because “it is the right thing to do,” said
James. The OFCCP has introduced more change in the past
few months than in the history of the Agency.
The OFCCP is considering other administrative
changes, such as requiring contractors to submit information
electronically (to cut down on the warehouse space for all the
three-ring binders and tabs it receives). In addition,
the Agency is reviewing administrative tasks that may be put
up for competitive bid to reduce costs. (We wonder who
will audit that federal contractor?)
Cari Dominguez, Chair of the EEOC, also announced
that her appointment has expired and that she will be stepping
down at the end of this month. No announcement of her replacement
has yet been made.
Enforcement Initiatives
James stated that the OFCCP will “continue
to aggressively monitor what [federal contractors] do.” Although
he did not state how many compliance reviews will be initiated
in 2007, more than 2,500 were conducted in 2005.
The OFCCP is continuing its efforts to identify
contractors for review through the new “Contracts First” initiative. The
Agency is attempting to ascertain covered employers by determining
who is doing business with the federal government instead of
relying on contractors to self-identify on EEO-1 Reports.
The Internet application regulation has “had
all kinds of effects that [the OFCCP] did not anticipate.” James
encourages contractors, when considering which processes to use,
to put themselves in the applicant’s shoes – in other
words, deciding whether a reasonable individual would expect
to be considered an applicant in given circumstances. Although
the OFCCP does not take the side of either the contractor or
the applicant, according to James, it will lean toward the side
of the applicant if it is “the right thing to do” because
the employer has all the power. James would not specify
exactly when the OFCCP would begin enforcing the new Internet
applicant regulations, but he advised contractors to “get
ready.”
Regarding the new compensation guidelines endorsing
the complex multiple regression analysis, James stated that “not
everyone can do it, but everyone accepts it.” He
advises contractors to do three things: (1) analyze compensation
data as many ways as possible; (2) be confident of the results;
and (3) be able to demonstrate that they are conducting an internal
analysis.
Still Wondering About the EO Survey?
The OFCCP has submitted its recommendation regarding
the EO Survey to the Office of Management and Budget for approval. Although
James would not state what the recommendation was, based on the
Agency’s early proposal to eliminate the EO Survey, we
can certainly speculate that federal contractors will be pleased
with the outcome!
If you are interested in joining a local
Industry Liaison Group chapter in your area and need more information,
please contact me at ccrotty@constangy.com. Local
ILGs can be a great resource for federal contractors!