Proposed Changes to New Scheduling Letters

In preparation for the renewal of the current Scheduling Letter, Compliance Letter, and Focused Review Letter for Supply and Service federal contractors, OFCCP has issued a request to the Office of Management and Budget seeking approval of a number of proposed changes. These will need to be approved by the Office of Management and Budget after the scheduled renewal date of June 30, 2019.  OFCCP has invited the public to comment on the changes by June 11.

If approved, the proposed items include significant changes to:

  • Scheduling letter and itemized listings for Establishment Reviews
  • Compliance Check letter
  • Focused review letters for Section 503 & VEVRAA

The following is a summary of the most significant changes proposed by OFCCP.  These are accompanied with additional detail on the number of audits OFCCP expects to conduct moving forward.  We’ve also provided the burden estimates OFCCP provided for additional context.

Specific changes to the Scheduling Letter and itemized listings include:

Approximately 2500 annually

OFCCP suggested number of hours to complete:  Contractor:  29 hours, OFCCP: 32 hours

  • Requiring that workforce analyses be performed for each racial group and that goals be established and tracked for individual races as opposed to grouping all “minority” groups together
  • Contractors would be required to submit “pools of applicants” for promotions based on gender and race/ethnicity
  • Results of the most recent analysis of the contractor’s compensation system
  • A list of the contractors three largest subcontractors based on contract value
  • Termination counts by voluntary vs. involuntary status
  • OFCCP anticipates conducting 2500 of these reviews annually
  • OFCCP estimates it will take them 32 hours to review the initial responses to each compliance review scheduling letter

Compliance Check Letter

Approximately 1000 annually

OFCCP suggested number of hours to complete:  Contractor:  2 hours, OFCCP: 3 hours

  • In keeping with the recent CSAL list, OFCCP is looking to continue its revival of compliance checks, which are limited reviews, to determine whether the federal contractor is meeting basic compliance requirements
  • OFCCP anticipates conducting 1000 of these reviews annually
  • OFCCP estimates it will take them 3 hours to review the initial responses to each compliance check

Focused Reviews for Section 503 & VEVRAA

Approximately 1500 annually

OFCCP suggested number of hours to complete:  Contractor:  10.5 hours, OFCCP: 13 hours

OFCCP wants to revise their newly issued Section 503 focus review letter and is seeking approval for a new VEVRAA focused review letter.  The revision is asking contractors to submit:

  • Employee-level compensation data (required for a regular compliance evaluation)
  • Detailed applicant- and employee-level information for individuals with disabilities and veterans
  • OFCCP anticipates conducting 1500 of these reviews annually
  • OFCCP estimates it will take them 13 hours to review the initial responses to each focused review

Other Significant Changes

Both the Scheduling Letter and the Focused Review Letters change a key requirement of the initial submission.  This change applies to the required submission if a contractor is 6 months or more into their AAP plan year.  The proposed letters would require detailed personnel activity data and progress towards goals for every completed month of the AAP year prior to receipt of the scheduling letter.  Along with OFCCP’s drive towards 100% compliance, this change gives contractors another reason to ensure their AAPs are up-to-date as soon as possible each year.

If you would like additional insight on the CSAL process, check out our Infographic and additional OFCCP updates information on our website. To read the regulatory changes in full visit here.