America’s Job Exchange 400 Minuteman Road, Andover, MA 01810 www.americasjobexchange.com The OFCCP’s New Compliance Developments: What to Do to Get Your Organization Prepared This webinar was hosted on May 24, 2012 by Shafeeqa Watkins Giarratani of Fulbright & Jaworski, LLP and Rathin Sinha of America’s Job Exchange
The OFCCP’s New Compliance Developments: What You Need to Do to Get Your Organization Prepared
May 13, 2015
Since 2009, the OFCCP’s staff has increased by 35% and it has hired and trained almost 200 new compliance officers. It has negotiated more than $25 million in back wages and interest and required more than 4,200 potential job offers to be made to workers alleged to have been victims of discrimination. This presentation from America’s Job Exchange and Fulbright & Jaworski LLP elaborates on key enforcement efforts and initiatives by the OFCCP, and practical tips to help organizations prepare. Some some of the topics discussed in the presentation include:
OFCCP’s proposed scheduling letter. The OFCCP has proposed a new scheduling letter which will require substantially more data to be submitted to OFCCP for desk audit. New mandatory items for submission would include: leave and accommodations policies; more specific demographic information for applicants, hires, promotions and terminations; data by job group and job title; more precise, employee-level compensation data; and details regarding compensation practices. Learn the steps your organization must take now to get ready.
New approach to compensation audits. The OFCCP has changed course with regards to compensation audits. Moreover, the OFCCP has indicated that it is seeking to create a compensation data collection tool to improve its ability to conduct “establishment-specific, contractor-wide, and industry-wide analyses.” Learn how the OFCCP is analyzing your data during compensation audits and the specific statistical analysis you need to run to put your organization in the best position during an audit.
Proposed Revisions to Regulations for Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act of 1973. The OFCCP has proposed revisions to the regulations governing VEVRAA and Section 503 which require even more of federal contractors. With regard to VEVRAA, the proposed rule requires several changes to requirements regarding outreach and recruitment for veterans. Learn what those new requirements are.
OFCCP’s proposed scheduling letter. The OFCCP has proposed a new scheduling letter which will require substantially more data to be submitted to OFCCP for desk audit. New mandatory items for submission would include: leave and accommodations policies; more specific demographic information for applicants, hires, promotions and terminations; data by job group and job title; more precise, employee-level compensation data; and details regarding compensation practices. Learn the steps your organization must take now to get ready.
New approach to compensation audits. The OFCCP has changed course with regards to compensation audits. Moreover, the OFCCP has indicated that it is seeking to create a compensation data collection tool to improve its ability to conduct “establishment-specific, contractor-wide, and industry-wide analyses.” Learn how the OFCCP is analyzing your data during compensation audits and the specific statistical analysis you need to run to put your organization in the best position during an audit.
Proposed Revisions to Regulations for Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and Section 503 of the Rehabilitation Act of 1973. The OFCCP has proposed revisions to the regulations governing VEVRAA and Section 503 which require even more of federal contractors. With regard to VEVRAA, the proposed rule requires several changes to requirements regarding outreach and recruitment for veterans. Learn what those new requirements are.
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America’s Job Exchange 400 Minuteman Road, Andover, MA 01810 www.americasjobexchange.com
The OFCCP’s New Compliance Developments: What to Do to Get Your Organization Prepared
This webinar was hosted on May 24, 2012 by
Shafeeqa Watkins Giarratani of Fulbright & Jaworski, LLP
and
Rathin Sinha of America’s Job Exchange
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Rathin Sinha President
America’s Job Exchange
Shafeeqa Watkins Giarratani Senior Associate
Fulbright & Jaworski, LLP
Today’s Speakers
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Senior Associate, Fulbright & Jaworski LLP
Shafeeqa Watkins Giarratani
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Agenda
Proposed Scheduling Letter
Changes to Compensation Audits
Proposed Regulations for Veterans and Individuals with Disabilities
Practical Tips to Prepare Your Organization
Overview of America’s Job Exchange
Questions & Answers
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OFCCP Under the Obama Administration
Appointed OFCCP Director Patricia Shiu
Former civil rights attorney for employees
Results-oriented: “Good faith efforts alone are not sufficient”
Budget increase of 35%
More than 200 new compliance officers hired and trained
High activity creating new regulations and updating existing regulations
Large penalties for findings of discrimination
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“Relax, honey – change is good.”
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New Proposed Scheduling Letter
New mandatory items for submission
Leave policies
Copies of accommodation policies and accommodations granted
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New Proposed Scheduling Letter
Revisions to existing obligations Collective bargaining agreement Employment activity
By job group and job title Include unknowns for race/sex Disclose actual pool for terminations and
promotions, and define promotions Compensation
Employee-level data as of February 1 All compensation (base, bonus, commissions, etc.) Compensation policies
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Get Prepared Now
Analysis of employment activity data By job group and job title Demographics
Minority vs. White Individual race vs. White Individual race vs. all others
Recordkeeping Pool data for terminations and promotions Total compensation for all employees (temporary, day laborers, etc.) Leave policies Accommodations granted
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Compensation Audits: New Approach
Compensation inequality is a huge focus for Department of Labor
December 2010: OFCCP proposed to rescind compensation guidance documents Interpreting non-discrimination
requirements of EO 11246 with regards to compensation discrimination standards
Voluntary guidelines for self-evaluation for compensation practices for compliance with EO 11246
Modification/abandonment of Tier 1 test for compensation
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OFCCP Compensation Audits Now
2% test and the “smell test” Almost all contractors asked to submit
follow-up data Regression analysis by job title “Individual” compensation claims vs.
systematic claims Disparity in handling of compensation
audits by office
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Prepare Now
Run compensation data by AAP job group, job title, and grade Look for variables to explain any statistical significance Decide how data will be submitted in desk audit and any “extra” factors
that will be provided Review “outliers” and determine explanations
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Advance Notice of Proposed Rulemaking: Data Collection Tool
What data should be collected? Average starting compensation, pay raises, bonuses,
minimum/maximum salary, standard deviation of salary, average tenure, etc.
What job categories? What elements of compensation? What questions to understand compensation? What type of industry-wide compensation trend analysis should
be conducted? What data should be collected for industry-wide review?
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Advance Notice of Proposed Rulemaking: Data Collection Tool
Nationwide multi-establishment compensation reviews Practical concerns in responding to compensation requests and how
contractors currently record and maintain compensation data How to use tool for self-assessment Strengths and weaknesses of 2000 Equal Opportunity Survey Requirements to submit electronically Data collection pre-award of Federal contract Application to construction contractors Suggestions for design, content, analysis, and implementation How small entities will be impacted
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What Is the OFCCP Going to Do with This Tool?
Some observations Audit vs. benchmarking and data
collection tool Industry-wide and nationwide “trends” Expansion to use by EEOC for Equal
Pay Act audits
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Proposed Regulations: Veterans
Data tracking requirements and analysis Number of applicants self-identified/known as protected veterans Ratio of jobs filled to job openings Number of applicants for all jobs Ratios
Referral ratio: Priority referrals (protected veterans) to all referrals (not limited to protected veterans) received from the applicable employment service delivery systems
Applicant ratio: Protected veteran applicants to all applicants Hiring ratio: Protected veteran hires to all hires
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Proposed Regulations: Veterans
Hiring benchmarks based on: Average percent of veterans in the civilian labor force in the state(s)
where the contractor is located over the preceding 3 years, as calculated by the Bureau of Labor Statistics (on OFCCP’s website)
Number of veterans over the previous 4 quarters who were participants in the employment service delivery system in contractor’s state according to DOL’s Veterans’ Employment and Training Service (VETS) (on OFCCP’s website)
Must document and maintain for 5 years!
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Proposed Regulations: Veterans
Hiring benchmarks based on: Referral ratio, applicant ratio, and hiring ratio for the previous year Contractor’s assessments of the effectiveness of its external outreach
and recruitment efforts Contractor’s job openings and/or its location, which would
tend to affect the availability of qualified protected veterans
Must document and maintain for 5 years!
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Proposed Regulations: Veterans
Pre-offer self-identification Must solicit all applicants to self-identify as protected veteran prior
to offer Self-identify as one of the 4 specific covered veteran categories
post-offer Additional outreach efforts
Include linkage agreements with local veterans’ employment representative
Include linkage agreements with nearest Department of Veterans Affairs regional office; veterans’ counselors and college campus coordinators; active national veterans’ groups in area; veterans’ service centers; DOD Transition Assistance Program
Use the OFCCP’s National Resource Directory to establish a linkage agreement with one or more in the directory that is not in the above list
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Proposed Regulations: Veterans
Makes mandatory internal dissemination obligations
Makes mandatory internal training topics
Requires written rationale for specific employment decisions towards veterans
Increases recordkeeping time periods Gives OFCCP increased access to
records
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Proposed Regulations: Individuals with Disabilities
Workforce composition goal: 7% disabled across job groups
Requirement to solicit disability status pre-offer, post-offer and annually
Additional data collection and recordkeeping
Reasonable accommodation requirements Linkage agreements Annual tracking and self-assessment
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Prepare Now
Review outreach efforts Determine workforce
composition for veterans and disabled
Consider linkage agreements Training
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President, America’s Job Exchange
Rathin Sinha
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Job Postings on AJE and the AJE Network of Job Sites Listings that reach a million job seekers per month with a large concentration of minorities, women, veterans and the disabled.
Job Postings to Niche Diversity Partner Websites Listings that reach job seeker audiences in targeted communities of minorities, women, veterans and people with disabilities.
Job Delivery to the Appropriate State Employment Systems Automated job delivery to State Workforce centers, Career One Stop Centers, LVERs and DVOPs, and CBO organizations.
On-Demand Audit Reporting with Custom Report Downloads Shows record of job posting and delivery, related links and job description, time and date stamps, and delivery confirmation.
America’s Job Exchange (AJE) provides Federal contractors with a solution that addresses OFCCP recruitment compliance for a fraction of the cost.
America’s Job Exchange
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America’s Job Exchange - Solution Summary
Several AJE products and services are bundled to form the industry’s most complete OFCCP
compliance solution
Industry leading tools, technologies and live assistance
are combined to offer an unparalleled customer
experience
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America’s Job Exchange employs a broad network of partners to help us formulate the industry’s most comprehensive recruitment compliance solution.
The AJE Network
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CLIENTELE
TRACK RECORD
REPUTATION
Completeness of Solution Bundles several distinct products and services to satisfy the broad range of tasks required by the regulators.
Customizability of Solution The AJE solution is customizable and priced based on your business needs with variables such as size, hiring forecast and budget.
Breadth of Distribution Network Broad network of partners and affiliates including recruitment media agencies, technology provider, associations and states.
Subsidiary of Publicly Traded Company AJE is not a membership-based non-profit association but part of a customer centric, publicly traded organization you can trust.
America’s Job Exchange offers a cost-effective solution that stands apart from the competition based on reputation, track record, and clientele.
The AJE Difference
Thank You Requests for information can be directed to:
America’s Job Exchange - [email protected]
Fulbright & Jaworski L.L.P. - [email protected]
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