Your next audit will be significantly more burdensome.
The Office of Federal Contract Compliance Programs announced its new Scheduling Letter and Itemized Listing effective immediately. As anticipated, the new desk audit requirements have expanded substantially. The final version that was approved by the Office of Management and Budget largely incorporates all of the changes sought by the OFCCP.
Here are some of the changes:
- The OFCCP may deliver the Scheduling Letter and Itemized Listing by email. We have already observed problems with this method of service, so contractors should be prepared and vigilant when the OFCCP requests an email address.
- Contractors with campus-like settings, including institutions of higher education, that maintain multiple affirmative action plans must submit all of the AAPs and related information for all parts of the organization in the city subject to the compliance evaluation.
- Contractors must provide documentation of all action-oriented programs designed to correct problem areas identified in the evaluation of employment processes.
- Contractors must submit documentation of their efforts to recruit individuals with disabilities and protected veterans, the criteria used to evaluate those efforts, and whether the efforts were determined to be effective.
- Where utilization of individuals with disabilities is less than 7 percent, contractors must submit a description of steps taken to identify impediments to equal employment opportunity and to correct any problem areas.
Contractors will also be required to submit detailed, employee-level compensation data for two annual snapshots (i.e., the current and prior years of data). Contractors must also present evidence that they have complied with the regulatory obligation to evaluate the compensation system on an annual basis, including when the compensation analysis was completed, the number of employees who were included in the analysis, the forms of compensation that were analyzed, and the methods that were used to analyze compensation.
The OFCCP is also demanding policies and procedures relating to the use of artificial intelligence in the selection process and all EEO-related policies.
The OFCCP has posted updated FAQs for contractors regarding this new Scheduling Letter & Itemized Listing, and states that it will also be posting a course in its Contractor Compliance Institute to provide additional guidance.
Contractors on the Corporate Scheduling Announcement List that have not yet received the Scheduling Letter should study the new requirements and start preparing for this much expanded submission list. If you need assistance, please contact any member of Constangy’s Affirmative Action/OFCCP Compliance Practice Group.
PartnerCara co-chairs Constangy’s practice groups relating to EEO/Contractor Compliance, Reporting & Analytics, and DEI Compliance. She advises employers on proactive strategies to help avoid litigation and has defended employers ...
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