It is with some trepidation that the following discussion is being presented. I can already hear the cries of “Is he out of his mind? Isn’t applicant tracking already complicated enough? Who does he think he is, suggesting that we need to consider making it more complicated?”
However, one of the biggest issues that we run into when preparing a client for an OFCCP compliance review is having accurate applicant flow records. Accurate applicant flow is critical because the OFCCP’s “bread and butter” case is entry-level hiring involving large numbers of applicants (see the final article in last month’s newsletter).
Continue reading More Applicant Tracking Disposition Codes? Really? Are you serious?
OFCCP closed over 400 compliance reviews in June 2014; over 230 in July 2014; and over 260 in August 2014. New Corporate Scheduling Announcement Letters (CSAL) notifications were sent out on July 16th to over 1,500 establishments. For contractors on fiscal plans that became effective after March 24, 2014, are you in compliance with the VEVRAA and Section 503 regulations? Contractors who prepare calendar year plans are now more than six months into the plan year and will have to submit year-to-date personnel activity and adverse impact analyses. Are you prepared?
On Thursday, July 31, 2014, President Obama issued his 5th Executive Order (EO) of 2014 affecting federal contractors. The EO, called the “Fair Pay and Safe Workplaces” Order requires federal contractors and subcontractors to do the following:
Disclosure of Federal and State Labor and Employment Law Violations
When submitting bids for federal supply and service or construction contracts, contractors must now provide the contracting officer with a three (3) year history of all labor and employment law violations under the following federal laws, as well as any companion state laws: Continue reading Executive Order – Fair Pay and Safe Workplaces
Below is an updated 503/VEVRAA Implementation Checklist for your use in meeting the obligations required under the regulations recently published by the OFCCP. This checklist is more detailed and thorough than the previous version provided in our webinars held earlier this year for the initial roll-out of the new regs.
This checklist provides a comprehensive overview of the actions required for a successful implementation of the new regs. Please do not hesitate to contact us if there are any questions regarding the checklist or if you wish to receive copies of the samples referenced. Continue reading Revised 503/VEVRAA Implementation Checklist
The OFCCP has just published a number of new frequently asked questions (FAQs) clarifying some of the requirements in implementing the revised Section 503 (Disabled) and VEVRAA (Veterans) regulations.
In regard to the newly published FAQs, for Section 503, they clarify the following points: Continue reading New 503/VEVRAA FAQs from the OFCCP
On July 21, 2014, President Obama signed a new Executive Order (EO) amending two prior Executive Orders: EO 11246 signed by President Johnson in 1965 and EO 11478 signed by President Nixon in 1969. These two EOs addressed Equal Employment Opportunity by federal contractors and the federal government. The new EO adds sexual orientation and gender identity as protected statuses, thereby prohibiting discrimination against lesbian, gay, bi-sexual and transgender employees of federal contractors.
The EO directs the Secretary of Labor to prepare implementing regulations within 90 days of July 21, 2014. Enforcement of the regulations will almost certainly fall to the Office of Federal Contract Compliance Programs (OFCCP) who already enforces EO 11246. This means that both the OFCCP and federal contractors are likely to start seeing the filing of individual complaints of discrimination. Continue reading Executive Order – LGBT Discrimination
In understanding the implementation of the new regs, and the impact of the new FAQs, we need to review the revised regulations in Subpart C – Sections 741/300.44(k) requiring the collection of specific information for data analysis. The revised regulations require:
“(k) Data collection analysis. The contractor shall document the following computations or comparisons pertaining to applicants and hires on an annual basis and maintain them for a period of three (3) years:
- The number of applicants who self-identified as individuals with disabilities/protected veterans pursuant to §60-741/300.42(a), or who are otherwise known to be individuals with disabilities/protected veterans;
- The total number of job openings and total number of jobs filled;
- The total number of applicants for all jobs;
- The number of applicants with disabilities/protected veteran applicants hired; and
- The total number of applicants hired.”
Continue reading New Data Collection Analysis Requirements
On June 12th, the OFCCP announced a $1 million settlement of a claim of systemic race discrimination in hiring against the Lincoln Electric Company in Cleveland, OH. The Agency alleged that the Company had discriminated against 5,557 African-American applicants for entry-level manufacturing production jobs by using an unvalidated selection process involving the use of various assessment instruments. The settlement also calls for the Company to hire 48 members of the affected class.
The Agency found that the Company’s selection process involved a “Turnover Risk Index” that had the effect of screening out African-American applicants at a disparate rate as opposed to non-African-Americans. The selection process involved asking candidates about their willingness to work rotating shifts as well as questions about drug use and criminal convictions. This was the second time in 11 years that the Company settled a $1 million claim of unlawful discrimination in entry-level hiring. Continue reading Applicant Pools, Adverse Impact and $1 Million
On February 12, 2014, President Obama signed an Executive Order (EO) raising the minimum wage for new and renegotiated federal contracts to $10.10 an hour effective January 1, 2015. Then, on March 10, 2014, he issued a Presidential Memorandum (PM) instructing the Labor Department to review the eligibility requirements for overtime under the Fair Labor Standards Act (FLSA).
On April 8, 2014, he signed another Executive Order regarding the “Non-Retaliation for Disclosure of Compensation Information.” Also on April 8, 2014, he issued another Presidential Memorandum instructing the Labor Department to propose a rule requiring federal contractors and subcontractors to submit summary data on compensation to the Labor Department by race and sex. Continue reading Executive Orders and Presidential Memorandums
Under the newly revised regulations regarding Veterans (VEVRAA) which became effective Monday, March 24th, the OFCCP established, for the first time, a hiring benchmark (goal) for Protected Veterans. Covered employers are given a choice of either accepting the National Percentage of Veterans in the Civilian Labor Force as their benchmark, or developing their own benchmark by considering five (5) different factors. This hiring benchmark is part of the Subpart C requirements that become effective as of the start of the next AAP planning cycle. For contractors on a calendar year plan, that means the benchmark requirement will be effective January 1, 2015.
The Annual National Percentage of Veterans in the Civilian Labor Force is based on Census Population Survey Table 1, provided by the Bureau of Labor Statistics (BLS) and is updated annually. Until this point in time, the OFCCP had published the 2014 benchmark number as 8%. However, on Friday, March 21st, the OFCCP announced that the benchmark number would actually be 7.2%. This benchmark will be in effect for all AAPs that renew after March 24, 2014. It is also important to recognize that this percentage will be updated and a new number will be published each year, resulting in a new benchmark at that point for contractors who simply adopt the BLS percentage. Continue reading OFCCP Issues Revised Guidance on New Vets and Disabled Regs