The Office of Federal Contract Compliance Programs (OFCCP) is an agency of the United States Department of Labor (DOL). The OFCCP was created to ensure federal contractors do not discriminate against job applicants or employees due to their race, color, religion, sex, sexual orientations, gender identity, national origin, disability, or veteran status. Simply put, the OFCCP enforces equal opportunity employment and non-discrimination regulations like VEVRAA and Section 503.
Becoming a new federal contractor or being an existing contractor, your organization needs to be fully aware of all the government regulations, executive orders, laws, and shear time that is required to keep up with all that comes along with winning a federal contract.
Most companies are aware of EEO (Equal Employment Opportunity) standards and obligations that have been established for the protections of minorities, women, and individuals with disabilities but there is a bit more involved… and it all begins with implementing a written affirmative action plan (AAP).
The OFCCP is not only the enforcer of all federal contractor obligations but it’s also a collection agency. They take the administration of their office seriously and conduct various audits on a regular basis. These various types of audits include: Compliance Check, Compliance Review, Section 503 or VVVRAA Focused Reviews, Corporate Management Compliance Evaluation (CMCE) or a Functional Affirmative Action Program Evaluation (FAAP).
Many single parts of this process are time consuming, leaving little margin for error, and NO employer wants to agonize over the consequence of failing an OFCCP audit. Violations can include loss of contract, financial judgements and/or legal rulings, not to mention all of the damaging publicity. This is why it is extremely important to have trusted, experienced vendors who have been through the audit process’ and established relationships at the local, state, and national levels.
Here is an abridged list of what should be included in your Affirmative Action Plan:
- Job Distribution – posting & distributions to state employment delivery systems (ESDS), diverse community-based organizations and ensuring veteran preference
- Outreach & Recruitment – state job services listings, “good faith efforts” to address underutilization goals & benchmarks, documented interactions with veterans and individuals with disabilities organizations
- Pay Compensation – analyses of impact ratios, utilization & compensation systems
- Notifications – required EEO & AA language, provide self-identification opportunities, vendor notification requirements and online application system access
- Verification & Reporting – applicant lifecycle tracking, record keeping, statistical trends, government reporting
In addition to the simplified checklist above, the OFCCP recently received approval for the implementation of their new Contractor Portal. All federal contractors and subcontractors must use this portal to annually certify the development and implementation of their AAP’s. Be on the lookout for 2022 registration and certification deadlines. (Refer to related post.)
Broadbean is an industry leading OFCCP compliance provider. Our Compliance Solution effortlessly takes care of your contractor job distribution, diversity recruitment efforts, straightforward reporting, and outreach management obligations. Broadbean’s outstanding compliance solution is backed by unrivaled support. Our Director of Compliance, Gary Cowan, worked for the Department Of Labor for more than 25 years as an auditor, trainer and director and for the past 8 years has assisted hundreds of clients through the audit process achieving a flawless 100% pass record.
Broadbean exclusively partners with leading Affirmative Action Provider, OutSolve, to ensure your OFCCP Compliance obligations are completely covered.
Need help understanding your OFCCP requirements? Contact us directly to find out more!