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J. Robert Brame and David S. Fortney, Editors
McGuireWoods LLP and Fortney & Scott, LLC
Vol. 5, No. 3
November 2007
INSIDE THE OFCCP
Federal contractors face more audits
The U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) recently announced that regional offices may schedule compliance evaluations (or audits) of nonconstruction federal contractors on the first Fiscal Year (FY) 2008
scheduling list. The new list includes about 2,500 facilities that either have self-identified as being a federal contractor's establishment or have been identified as one by the OFCCP.
How does facility land on/stay off audit list?
The list was generated through the Federal Contractor Selection System (FCSS), which uses multiple information sources and analytical procedures to select contractors for review. The process includes a mathematical model that ranks federal
contractors' establishments based on an indicator of potential workplace discrimination.
Excluded from the list are federal contractors' establishments that:
- are currently undergoing a compliance evaluation;
- were evaluated within the last 24 months;
- have received the labor secretary's Opportunity Award or an Exemplary Voluntary Efforts Award within the last three years; or
- are
covered by Functional Affirmative Action Program agreements (the latter will be selected for evaluation through a separate process).
A corporate scheduling announcement letter (CSAL) has been mailed to the chief executive officer (or designated
point of contact) of each parent company with more than one establishment listed for the scheduling of a compliance evaluation in this FY. The OFCCP points out that not all establishments identified in the attachment to the CSAL may be scheduled for
an evaluation. It's also possible that establishments other than those specifically identified in the CSAL may be evaluated by the agency for a variety of reasons, such as subsequent scheduling releases, contract award notices, directed reviews,
individual complaints, or the conciliation agreement monitoring process.
For contractors with multiple establishments, the number of new compliance evaluations identified through the scheduling process is limited to 25 new evaluations during an FY. Note that the OFCCP doesn't count pending audits, compliance evaluations
scheduled as a result of contract award notices, directed reviews, conciliation agreement monitoring, or credible reports of an alleged violation of a law or regulation toward that limit.
The OFCCP has posted frequently asked questions about the CSAL and the FCSS on its website. Go to www.dol.gov/esa/ofccp/.
Compliance tip. Corporate headquarters audits can pose significant risks and burdens for federal contractors. HR professionals should ensure that senior management and experienced counsel are fully involved in guiding the audit response. In
particular, the OFCCP recently focused on a wide range of compensation and employment-testing matters. Responses related to those areas should be carefully scrutinized before making any submission to the agency.
Shamrock Foods to fork over $815,000 in back pay to women, minorities
Phoenix-based Shamrock Foods has agreed to pay $816,781 in back wages and interest, revamp its hiring practices, and offer jobs to minority and female applicants rejected for employment at the company's Phoenix dairy plant, the OFCCP recently
announced. The company contracts with the federal government to supply dairy products to the U.S. Department of Veterans Affairs and federal prisons.
The settlement addresses disparities identified during a routine OFCCP compliance review. Under the agreement, Shamrock will:
- pay $816,781 in back wages and interest to 870 minority and female job applicants who unsuccessfully sought jobs in 2004 and 2005; and
- offer jobs to 28 rejected minority applicants and 20 rejected female applicants.
The job
categories in question include blow mold operator, order selector, cottage cheese maker, filler operator, pasteurizer operator, and milk receiver. Shamrock also has agreed to review its employment application process and train its managers in
nondiscriminatory selection procedures.
Copyright 2007 M. Lee Smith Publishers LLC
FEDERAL EMPLOYMENT LAW INSIDER does not attempt to offer solutions to individual problems but rather to provide information about current developments in federal employment law. Questions about individual problems should be addressed to the federal
employment law attorney of your choice.
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