The OFCCP’s New Compliance Developments: What You Need to Do to Get Your Organization Prepared
 

The OFCCP’s New Compliance Developments: What You Need to Do to Get Your Organization Prepared

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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 ...

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.

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The OFCCP’s New Compliance Developments: What You Need to Do to Get Your Organization Prepared The OFCCP’s New Compliance Developments: What You Need to Do to Get Your Organization Prepared Presentation Transcript

  • 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 America’s Job Exchange 400 Minuteman Road, Andover, MA 01810 www.americasjobexchange.com
  • Today’s SpeakersShafeeqa Watkins Giarratani Rathin Sinha Senior Associate President Fulbright & Jaworski, LLP America’s Job Exchange Page 2 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • Shafeeqa Watkins Giarratani Senior Associate, Fulbright & Jaworski LLP Page 3 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 4 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 5 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • “Relax, honey – change is good.” Page 6 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • New Proposed Scheduling Letter New mandatory items for submission  Leave policies  Copies of accommodation policies and accommodations granted Page 7 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • New Proposed Scheduling LetterRevisions 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 Page 8 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 9 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 10 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 11 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 12 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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? Page 13 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 14 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 15 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 16 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • Proposed Regulations: VeteransHiring 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! Page 17 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • Proposed Regulations: VeteransHiring 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 veteransMust document and maintain for 5 years! Page 18 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 19 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 20 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • 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 Page 21 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • Prepare Now Review outreach efforts Determine workforce composition for veterans and disabled Consider linkage agreements Training Page 22 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • Rathin SinhaPresident, America’s Job Exchange Page 23 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • America’s Job ExchangeAmerica’s Job Exchange (AJE) provides Federal contractors with a solution thataddresses OFCCP recruitment compliance for a fraction of the cost. 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. Page 24 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • America’s Job Exchange - Solution Summary Several AJE products and services are bundled to form theindustry’s most complete OFCCP compliance solution Industry leading tools,technologies and live assistance are combined to offer an unparalleled customer experience Page 25 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • The AJE NetworkAmerica’s Job Exchange employs a broad network of partners to help us formulatethe industry’s most comprehensive recruitment compliance solution. Page 26 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • The AJE DifferenceAmerica’s Job Exchange offers a cost-effective solution that stands apart from thecompetition based on reputation, track record, and clientele. Completeness of Solution Bundles several distinct products and services to satisfy the broad range of tasks required by the regulators. REPUTATION 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 TRACK RECORD 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 CLIENTELE customer centric, publicly traded organization you can trust. Page 27 Visit www.americasjobexchange.com/employer or Call 1-866-923-6284
  • Thank YouRequests for information can be directed to: America’s Job Exchange - sales@americasjobexchange.com Fulbright & Jaworski L.L.P. - sgiarratani@fulbright.com