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| "Who’s knocking? Surviving an OFCCP Audit" |
FROM AFFIRMATIVE ACTION SOLUTIONS, June 2002
© 2002 Business & Legal Reports, Inc.
One sunny Monday morning, your company's CEO walks into your office, drops a letter on your desk, saying,"handle this," and leaves. Clouds come over your morning as you read the first sentence:
"Your establishment... has been selected by the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) for a compliance evaluation in accordance with 41 CFR 60-1.20. The OFCCP enforces Executive Order 11246, as amended, Section 503 of the Rehabilitation Act of 1973, as amended, and the Viet Nam Era Veteran’s Readjustment Assistance Act of 1974, as amended (38 U.S.C. 4212, or VEVRAA)...
"As specified in OFCCP regulations at 41 CFR 60-1.40, 41 CFR 60-2.1, 41 CFR 60-741.40 and 41 CFR 60.250.40, Federal contractors and subcontractors employing at least 50 people and having a contract which totals $50,000 or more are required to develop written affirmative action programs (AAPs) for each of their establishments.”
Don’t panic...
Your first thought may be, "what did we do wrong?" The letter from the DOL probably doesn't mean that you did anything wrong; it may be your company’s turn to be selected for an audit to ensure the federal government's contractors and subcontractors are in compliance with equal opportunity and affirmative action regulations.
An OFCCP audit can take many forms: an off-site review of records, a compliance check, a focused review, or a compliance review. The letter will explain which form of review.
What will they look for? Again, the letter will specify what documents and records the review will entail. Most common requests for information include:
- A copy of the most recent affirmative Action Plan
- Results under the prior year’s AAP
- Annual Adverse Impact Analysis
- Examples of job advertisements
- Listings with state employment agencies
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- Examples of accommodations made for persons with disabilities
- Records of leaves of absence under the Family Medical Leave Act
- Most recent EEO-1 and VETS-100 reports
Warning! The OFCCP can also check for compliance with the Immigration Reform and Control Act (IRCA) while they are on-site. Make sure the Employment Eligibility Verification Forms (I-9 Forms) are in order and available for inspection.
About record retention: In general, you must keep personnel activity data (Applicant Flow, Hires, Promotions, Transfers, Terminations) by race and gender for at least 2 years if your contract is $150,000 or more; and for at least 1 year if you contract is less than $150,000.
When the compliance officer shows up, don’t initiate a defensive posture, which can create suspicion. Be accommodating; be on time. Give the auditor what he/she asks for, no more. Compliance officers usually have an agenda of what they intend to review, don't provide unsolicited information and increase your exposure.
Provide a quiet work area for the auditor away from heavy employee traffic areas. The auditor wants to work uninterrupted, and the less time spent on your audit, the better.
Steven P. King
Is a Senior Consultant with HR Alternatives, Inc., located in Newport Beach, CA, providing HR services locally and nationwide. He can be reached at (949) 453-6250 or at their website: www.hralternativesinc.com
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