Welcome to HudsonMann’s OFCCP Updates for Q3 2019. For many employers, compliance activities in the last quarter centered on filing Component 2 of the EEO-1 report. We’ll start there and also cover OFCCP audit updates and what’s on the horizon for federal contractors.
September 30th marked the deadline for filing the EEO-1 Component 2 pay data collection. At the time of filming this video, the filing portal is still open while EEOC works to meet it’s court-mandated completion rate. Information on filing can be found at eeoccomp2.norc.org/
EEOC has indicated that they will not renew the Component 2 submission requirement in 2020. That means there is a high likelihood that the recent Component 2 filing will be a one-time occurrence. What remains to be seen is how much the EEOC will utilize the data collected for future enforcement activities.
Speaking of pay data, let’s turn our attention to OFCCP audit updates and the agency’s continued focus on pay discrimination.
In the final week of September, OFCCP announced three multi-million dollar financial settlements. Two of those three settlements were for allegations of pay discrimination, one was for allegations of hiring discrimination, and all three utilized OFCCP’s new Early Resolution Procedures. This shows that while OFCCP’s fair pay enforcement tactics may be changing, their commitment to ensuring fair pay is not slowing down at all.
The last few months have also seen OFCCP schedule and conclude a significant number of Compliance Checks. These abbreviated audits were reintroduced in the CSAL list released in March. Since then OFCCP has released a number of resources regarding compliance checks on their website. You can see those at dol.gov/ofccp/ComplianceChecks/. In the compliance checks that we’ve supported, we’ve seen closure letters coming as quickly as a couple of days after initial submission. This seems to be in keeping with OFCCP’s goal of using compliance checks to further the efficiency of their enforcement efforts.
Q3 also saw OFCCP beginning to schedule Section 503 focused reviews. There were 500 of these reviews on the March CSAL list, so Federal contractors should be watching their mailboxes closely. Additionally, OFCCP’s is expanding their focus on disability inclusion by partnering with the Office of Disability Employment Policy to create the Excellence in Disability Inclusion Award. This award will recognize federal contractors who excel in meeting their responsibilities under Section 503 and exemplify the spirit of disability inclusion. The application process is open until November 1, 2019 and interested companies can apply at dol.gov/ediaward.
Looking ahead Federal contractors should expect OFCCP to announce Focused Reviews for Veterans on Veteran’s Day in November. These reviews will not be scheduled until another CSAL list is published. It is likely that we will see the final version of OFCCP’s audit scheduling letter changes prior to the end of the year as well. As always, you can stay up to date with the latest OFCCP news by subscribing to HudsonMann’s newsletter. Be sure to join us on October 22nd and 23rd for HudsonMann’s Compliance Conference. Over the course of two days we’ll be hosting a series of webinars centered around the theme of Charting Your Course to Compliance. It’s a great opportunity to hear from industry-leading presenters while obtaining continuing education credits. We hope to have you there.