Welcome all! In this video, we’ll break down the top 6 things that employers can expect from the Office of Federal Contract Compliance Programs, or OFCCP, in 2020. We’ve made this list from reviewing OFCCP’s budget proposals, regulatory agenda, comments at recent conferences, as well as our own observations from assisting Federal contractors in the development and support of their Affirmative Action Programs. So without further ado let’s begin:
Number One: Expect increased audit activity
After years of declining audit completion numbers, OFCCP’s case closures are starting to trend upwards again. You can expect the speed of scheduling and closure to increase this year. Looking ahead to OFCCP’s 2021 budget, you’ll see OFCCP expects they can complete close to 3,000 compliance reviews per year. That’s more than double the number they completed in fiscal year 2019. A key component of this ramp up will be OFCCP’s expanded use of Focused Reviews and Compliance Checks. Which brings us to our next item.
Number Two: Expect new kinds of Focused Reviews
Last November, OFCCP released a list of company establishments that will be subject to VEVRAA Focused Reviews. These reviews can’t actually be scheduled until OFCCP receives approval of their proposed VEVRAA scheduling letter. We anticipate the finalization of this letter to occur in 2020 along with the scheduling of the VEVRAA focused reviews. Focused reviews of promotion practices are also in the pipeline at OFCCP. If your organization has not defined what you consider to be a promotion, now is the time to bring clarity to that term and process.
Number Three: Expect expanded use of the Compliance Check
Compliance Checks have been a great way for OFCCP to increase their audit activity while keeping the scope and burden of these reviews manageable. Our experience shows that Compliance Checks can conclude within just days of submitting the required documentation. OFCCP plans to introduce compliance checks for construction contractors in 2020. This will allow them to increase their oversight of smaller construction employers while focusing full compliance reviews on mega construction projects.
Number Four: Expect New scheduling letters to be approved
OFCCP has proposed significant changes to their standard scheduling letters. While some of these changes were met with sharp criticism, it is unclear what changes will make it into the final letters. The shape that these letters take could significantly impact the kinds of data required at the outset of an compliance review.
Number five: Expect additional contractor compliance incentives:
OFCCP will seek to expand their reach outside of the audit process by providing additional incentives for contractors who receive training from the agency or participate in voluntary compliance reviews. Each of these programs may help contractors earn short-term exemptions from the audit scheduling process. Additional promotion of these programs is likely to continue in 2020.
Number six: Expect New leadership
OFCCP Director Craig Leen is being nominated to serve as Inspector General at the Office of Personnel Management. The timing of this move, and who will replace him at OFCCP, remains to be seen. Director Leen has been instrumental in many of OFCCP’s recent changes and the direction the agency takes after his departure will be partially determined by when a new Director is appointed. The big question is will OFCCP operate with an Acting Director until after this year’s election season or will a political appointee be named before November?
That’s all for now! To keep up to date with all things Affirmative Action, please subscribe to our newsletter at the link in the description or visit us at HudsonMann.com. Thanks for watching!