OFCCP ComplianceEvaluation 101

Sandra M. Dillon, Branch Chief Office of Federal Contract Compliance Programs

Division of Program Operations(202) 693-1079

Dillon.sandra.m@dol.gov

Workshop Objective

• What to expect during a Compliance Evaluation– Desk Audit– Onsite– Offsite

• How to self-audit your own AAP

About OFCCP

• Network of 6 regional offices and 50+ district and area offices

• More than 600 employees nationwide

• Reviews personnel practices of federal contractors and subcontractors through compliance audits

• Audits 4,000-10,000 contractor establishments annually

OFCCP’S Mission• Ensure federal contractors comply with the

laws and regulations requiring nondiscrimination and affirmative action:– Executive Order 11246– Section 503 of the Rehabilitation Act– VEVRAA

• Ensure compliance with Executive Order 13201

• I-9 Documentation

How OFCCP Works

• Conducts Compliance Evaluations– Pre-Award Review– Offsite Review of Records– Focused Review– Full Compliance Review– Compliance Check

• Conducts Complaint Investigations

Identifying Contractorsfor Compliance Evaluations

• Federal Contractor Selection System

• Pre-awards

• Class Complaints

• Progress Report Violations

Compliance Evaluation Overview

Scheduling Letter

Desk Audit

Onsite Investigation

Closure

Desk Audit

• Review AAP for inclusion of items, reasonableness and acceptability.

• Conduct statistical analyses for potential systemic indicators

AAP Acceptable?

• Higher standard

• Text Only – implementation must still be evaluated

Workforce Analysis Reasonable?

• Workforce Analysis lists all jobs at the establishment by title (not job group, EEO-1 category, etc.) and organizational unit, showing total employees, total women, and total minorities for each job title.

Workforce Analysis Acceptable?

• Acceptable - Workforce Analysis must contain:– Listing of each job title

– Wage rate or salary range order

– Within each department or organizational unit, including supervision

– Where separate work unit or lines of progression, a separate listing must be provided

Utilization Analysis Reasonable?

• Utilization Analysis includes– Job group that attempts to combine job titles into

job groups (similar content, wage, opportunities), and by organizational unit, showing total employees, total women, and total minorities for each job title.

– Availability Analyses that attempts to establish separate availability estimates for minorities and women for each job group

– Underutilization Determination that compares availability to current incumbency

Job Groups Acceptable?

• Job Groups must be:– Similar work content

• Appropriate EEO category• Dictionary of Occupational Titles

– Similar rates of pay

– Similar opportunities• Job in separate unions• Job in lines of progression

Job Groups Acceptable? (cont’d)

• Similar refers to the duties and responsibilities of the job.– Cross reference with EEO categories

– Cross reference with Dictionary of Occupational Titles, Labor Agreements

– Similar rate of pay

– Determine opportunity, lines of progression, etc.

Key Tip

Job Groups Must Not Obscure Underutilization

Job Groups Must Permit Meaningful Analyses

Job Groups Should Not Normally Cross EEO Categories

Availability Analysis Acceptable?

• Availability Analysis must:– Contain proper definition of labor area

• Six tied to contractor’s definition of labor areas, e.g., availability of min/females in the surrounding area; immediate, reasonable. Those min/fem seeking employment, size of min/fem unemployment force, etc.

– Show consideration of all eight factors

– Factors must reflect actual recruitment pattern and practice

• Entry level = workforce participation rate• Some skill = requisite skill for reasonable recruitment

area• Internal = min/fem in the workplace

Utilization Analysis Acceptable?

• Utilization Analysis– Compare availability to incumbency

– Must set goals for job groups that are determined underutilized of minorities and females

– Different methods, 80%, 2SD, whole person, etc. to determine if underutilized

GOALS ARE NOT QUOTAS

Goals Reasonable?

• Current Goals that attempt to establish goals for those job groups identified as underutilized.

Acceptable Support Data

• Prior and current AAP year

• All personnel activity – Hires, Promotions, Transfer, Termination, Lay-off

• Must reflect Race and Gender

• Must be by Job Group or Job Title

• May be submitted in the form available

Support Data Not Acceptable

• Aggregations larger than job group

• No sex and/or minority indicators

41 CFR Part 60-3 requires that contracts…maintain and have

available for inspection records or other information which will disclose

the impact which its …selection procedures have upon the

employment opportunities of persons by identifiable race, sex, or

ethnic groups…”

Impact Ratio Analysis

• Conducted for each personnel action

• Method for identifying the rate of selection for each group

• Selection rate which is less than 80%, and more than two standard deviations for the favored group, is investigated further.

Impact Ratio Analysis

Group Exercise

Impact Ratio Analysis

Group Exercise

Group Exercise

Onsite

• Opening Conference

• Review of personnel activity data

• Interviews

• Closing Conference

• Offsite, as needed

Support Data

• Report on goals

• Applicant Flow

• Hires

• Promotions

• Terminations

Systemic Findings

• Predetermination Notice or Notice of Violation

• Conciliation Agreement– Part I – General– Part II – Specific Violations– Part III - Reporting

Recap

EO 11246 AAP Requirements

• Organizational Profile– Organizational Display– Workforce Analysis

• Job Group Analysis

• Determining Availability

• Comparing Incumbency to Availability

• Placement Goals

EO 11246 AAP Requirements(Continued)

• Designation of Individual Responsible for Implementation

• Identification of Problem Areas

• Action-Oriented Programs

• Periodic Internal Audits

503/4212 AAP Requirements

• Policy Statement

• Review of Personnel Processes

• Physical and Mental Qualifications

• Reasonable Accommodations to Physical and Mental Limitations

• Anti-harassment Statement

503/4212 AAP Requirements(Continued)

• External Dissemination of Policy, Outreach and Positive Recruitment

• Internal Dissemination of Policy

• Audit and Reporting System

• Responsibility for Implementation

• Training

• Job Listing (4212)

Best Practices

Compliance Assistance Resources

• Visit OFCCP’s website– http://www.dol.gov/esa/ofccp/index.htm

• Attend an OFCCP Seminar or Workshop– Calendar Online

• Call or Email for Individual Assistance– 1-866-4-USA-DOL– OFCCP-Public@dol.gov

• Does not trigger evaluation