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Compliance reviews under new OFCCP scheduling letter will begin October 16

October 8th, 2014  |  Cynthia L. Hackerott

The OFCCP will not schedule supply and service compliance evaluations from October 1 through October 15, 2014 in order to allow contractors time to review and become acquainted with the new compliance review scheduling letter and accompanying itemized listing, the agency announced last week. These newly revised documents will allow the OFCCP to seek more, and more detailed, information from federal contractors during the desk audit phase of compliance evaluations. The number of items contained in the itemized listing has increased from 11 to 22, and now includes information on reasonable accommodation policies, more specific demographic information on employment decisions, more precise data for compensation analysis (aggregate data rather than the disaggregate data) and more data regarding compliance with Section 503 of the Rehabilitation Act of 1973 (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA).

The Office of Management and Budget (OMB) approved the new scheduling letter and itemized listing, along with a revised compliance check letter, on September 30, 2014 — three years after the OFCCP submitted a revised proposal regarding changes to these documents. A notice announcing this approval, and highlighting some of changes, was published in the September 30, 2014 edition of the Federal Register (79 FR 58807-58808). OMB approval of all three documents, which are now posted on the OMB’s RegInfo.gov website, expires on March 31, 2016.

Notice of the revised proposal was published in the September 28, 2011 edition of the Federal Register (76 FR 60083-60084). The revised proposal addressed comments received regarding the OFCCP’s initial proposal issued in May of that year (76 FR 27670-27671) and, in response to those comments, contained several changes to the original proposal. The comment period on the revised proposal closed on October 28, 2011. The documents approved by the OMB on September 30, 2014 incorporate some, but not all, of the proposed changes from the 2011 revised proposal, as well as changes that the OFCCP states are needed to obtain the information required for evaluating the Section 503 and VEVRAA affirmative action programs under revised regulations which took effect earlier this year.

Changes to scheduling letter and itemized listing The September 30, 2014 Federal Register notice highlights the following approved changes:

  • The scheduling letter will continue to allow contractors to submit employment activity data by either job group or job title. Thus, the OMB apparently rejected the OFCCP’s request to require contractors to submit data by job group and job title.
  • Contractors will continue to provide this data by sex; however, they will submit race and ethnicity information using five specified categories instead of two broad categories (i.e., minority and nonminority).
  • Regarding its compensation data requirements, the itemized listing will no longer requires that contractors submit annualized aggregate compensation data. Instead, contractors will be required to submit individualized employee compensation data as of the date of the workforce analysis in their Affirmative Action Programs, also noting the job title, job group and EEO-1 category.
  • The definition of compensation is revised to include consideration of hours worked, incentive pay, merit increases, locality pay, and overtime.
  • The revised letter requires contractors to provide the data electronically but only if they maintain it in an electronic format that is useable and readable.
  • Several changes were made to the itemized listing to reflect regulatory changes since the letter was last approved, including changes to the OFCCP regulations regarding compensation, and regarding workers with disabilities and protected veterans.

Compliance check letter. The specific documents sought in the revised compliance check letter remain unchanged.

Supporting statement. The OFCCP’s supporting statement, which details the changes and the rationales behind them, and related documents are posted on the RegInfo.gov website at: http://www.reginfo.gov/public/do/PRAViewDocument?ref_nbr=201104-1250-001.