the ofccp’s new compliance developments: what to … · the ofccp’s new compliance...

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

Welcome! The webinar will begin shortly.

America’s Job Exchange400 Minuteman Road, Andover, MA 01810www.americasjobexchange.com

Audio Conferencing:1-866-469-3239 Access Code: 733 022 588

Today’s Speakers

Visit www.americasjobexchange.com/employer or Call 1-866-923-6284

Rathin SinhaPresident

America’s Job Exchange

Shafeeqa Watkins GiarrataniSenior Associate

Fulbright & Jaworski, LLP

Shafeeqa Watkins Giarratani


Senior Associate, Fulbright & Jaworski LLP

Agenda

Proposed Scheduling LetterChanges to Compensation AuditsProposed Regulations for Veterans and Individuals with Disabilities Practical Tips to Prepare Your OrganizationOverview of America’s Job Exchange


Questions & Answers

OFCCP Under the Obama Administration

Appointed OFCCP Director Patricia ShiuFormer civil rights attorney for employeesResults-oriented: “Good faith efforts alone are not sufficient”

Budget increase of 35%


More than 200 new compliance officers hired and trainedHigh activity creating new regulations and updating existing regulationsLarge penalties for findings of discrimination

“Relax, honey – change is good.”


New Proposed Scheduling Letter

New mandatory items for submission Leave policiesCopies of accommodation policies and accommodations granted


New Proposed Scheduling Letter

Revisions to existing obligationsCollective bargaining agreement Employment activity

By job group and job titleInclude unknowns for race/sex


Disclose actual pool for terminations and promotions, and define promotions

CompensationEmployee-level data as of February 1All compensation (base, bonus, commissions, etc.)Compensation policies

Get Prepared Now

Analysis of employment activity data By job group and job titleDemographics

Minority vs. WhiteIndividual race vs. White


Individual race vs. all othersRecordkeeping

Pool data for terminations and promotionsTotal compensation for all employees (temporary, day laborers, etc.)Leave policiesAccommodations granted

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


g pdiscrimination standardsVoluntary guidelines for self-evaluation for compensation practices for compliance with EO 11246

Modification/abandonment of Tier 1 test for compensation

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


systematic claimsDisparity in handling of compensation audits by office

Prepare Now

Run compensation data by AAP job group, job title, and grade Look for variables to explain any statistical significanceDecide how data will be submitted in desk audit and any “extra” factors that will be providedReview “outliers” and determine explanations


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 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?

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 dataHow to use tool for self-assessmentStrengths and weaknesses of 2000 Equal Opportunity SurveyRequirements to submit electronically


Requirements to submit electronicallyData collection pre-award of Federal contractApplication to construction contractorsSuggestions for design, content, analysis, and implementationHow small entities will be impacted

What Is the OFCCP Going to Do with This Tool?

Some observationsAudit vs. benchmarking and data collection toolIndustry-wide and nationwide “trends”Expansion to use by EEOC for Equal Pay Act audits


Act audits

Proposed Regulations: Veterans

Data tracking requirements and analysisNumber of applicants self-identified/known as protected veteransRatio of jobs filled to job openingsNumber of applicants for all jobsRatios


Referral ratio: Priority referrals (protected veterans) to all referrals (not limited to protected veterans) received from the applicable employment service delivery systemsApplicant ratio: Protected veteran applicants to all applicantsHiring ratio: Protected veteran hires to all hires


Hiring 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


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!


Hiring benchmarks based on: Referral ratio, applicant ratio, and hiring ratio for the previous yearContractor’s assessments of the effectiveness of its external outreach and recruitment effortsContractor’s job openings and/or its location, which would tend to affect the availability of qualified protected veterans


tend to affect the availability of qualified protected veterans

Must document and maintain for 5 years!


Pre-offer self-identification Must solicit all applicants to self-identify as protected veteran prior to offerSelf-identify as one of the 4 specific covered veteran categories post-offer

Additional outreach effortsInclude linkage agreements with local veterans’ employment representative


representativeInclude 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 ProgramUse 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


Makes mandatory internal dissemination obligations Makes mandatory internal training topicsRequires written rationale for specific employment decisions towards veteransIncreases recordkeeping time periods


Increases recordkeeping time periodsGives OFCCP increased access to records

Proposed Regulations: Individuals with Disabilities

Workforce composition goal: 7% disabled across job groupsRequirement to solicit disability status pre-offer, post-offer and annuallyAdditional data collection and recordkeepingReasonable accommodation requirements


Reasonable accommodation requirementsLinkage agreementsAnnual tracking and self-assessment

Prepare Now

Review outreach efforts Determine workforce composition for veterans and disabledConsider linkage agreementsTraining


Rathin Sinha


President, America’s Job Exchange

Job Postings on AJE and the AJE Network of Job SitesListings 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 WebsitesListings that reach job seeker audiences in targeted communities of

America’s Job Exchange (AJE) provides Federal contractors with a solution that addresses OFCCP recruitment compliance for a fraction of the cost.

America’s Job Exchange


minorities, women, veterans and people with disabilities.

Job Delivery to the Appropriate State Employment SystemsAutomated job delivery to State Workforce centers, Career One Stop Centers, LVERs and DVOPs, and CBO organizations.

On-Demand Audit Reporting with Custom Report DownloadsShows record of job posting and delivery, related links and job description, time and date stamps, and delivery confirmation.

America’s Job Exchange - Solution Summary

Several AJE products and services are bundled to form the industry’s

most complete OFCCP compliance solution


Industry leading tools, technologies and live assistance are combined to

offer an unparalleled customer experience

America’s Job Exchange employs a broad network of partners to help us formulate the industry’s most comprehensive recruitment compliance solution.

The AJE Network


REPUTATION

Completeness of SolutionBundles several distinct products and services to satisfy the broad range of tasks required by the regulators.

Customizability of SolutionThe AJE solution is customizable and priced based on your business

America’s Job Exchange offers a cost-effective solution that stands apart from the competition based on reputation, track record, and clientele.

The AJE Difference


CLIENTELE

TRACK RECORDneeds with variables such as size, hiring forecast and budget.

Breadth of Distribution NetworkBroad network of partners and affiliates including recruitment media agencies, technology provider, associations and states.

Subsidiary of Publicly Traded CompanyAJE is not a membership-based non-profit association but part of a customer centric, publicly traded organization you can trust.

For more information, please contact:

Thank You

Questions: [email protected] for information: [email protected]

This webinar will be available as a recording.Look for an email next week after the holiday weekend.

the ofccp’s new compliance developments: what to … · the ofccp’s new compliance...

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