OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS (OFCCP)
Summer 2009 AAPNews
"OFCCP SPEAKS"
The Department of Labor's Office of Contract
Compliance Programs (OFCCP) held its annual
meeting for federal contractors in Atlanta, GA, on July
28, 2009, where a number of significant
developments in Affirmative Action law and
compliance procedures were discussed.
Important Structural Changes for
OFCCP
OFCCP announced that it will report directly to the
Secretary of Labor beginning in November, instead of
operating through ESA (the Employment Standards
Administration) as a third-tier program since its
inception in the 1970's. Elevation of OFCCP to a direct
reporting department will create a more visible
platform and could add political pressure to affirmative
action enforcement.
OFCCP will also have a new budget for the coming
year, potentially adding 213 new Compliance Officers
(CO's), which will provide the Agency with a lot more
enforcement and compliance horsepower. Currently,
there are less than 300 CO's employed by OFCCP.
A new Director of OFCCP has also just been
selected. Patricia Shiu from San Francisco's Legal
Aid Society, has become OFCCP's newly appointed
Deputy Director responsible for enforcement and
compliance of equal opportunity and affirmative action
programs for federal contractors. Her first task may
well be to determine where affirmative action will go in
the future.
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OFCCP Continues to Produce Record Financial Remedies in FY 08
In fiscal year 2008, OFCCP's enforcement efforts
resulted in a record $67,518,982 financial remedies
for a recorded 24,508 American Workers. Ninety-eight
percent of the enforcement result was collected in
cases of systemic discrimination.
DOL has reported that, due to a more
effective and efficient process, OFCCP again was able
to screen a record number of contractor
establishments for indicators of potential
discrimination.
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OFCCP ARRA Enforcement Plans
On February 17, 2009, the American Recovery and
Reinvestment Act (ARRA) was signed into law by
President Obama. The Recovery Act authorizes up to
$787 billion in Federal spending through September
30, 2010. Federal contractors receiving ARRA funds
are subject to OFCCP evaluation to ensure their
compliance with EEO laws and regulations.
Accordingly, OFCCP has developed a plan to monitor
these companies and institutions.
The majority of federal contractors to be audited will
be recipients of funds for construction projects.
OFCCP will also conduct compliance reviews of
supply and service contract recipients.
OFCCP's goal is to increase contractor awareness of
EEO laws and regulations. This will be done through
Outreach and Enforcement Activities.
Enforcement Activities:
OFCCP plans to conduct about 360 construction and
90 supply and service reviews, targeting 10% of the
reviews for first-time federal contractors. OFCCP has
established separate scheduling procedures to
provide for compliance evaluations for this group. The
expected completion date is September 30, 2010.
OFCCP expects to amend its current construction
scheduling guidelines to ensure that priority is given
to Recovery Action-related construction
evaluations.
OFCCP will conduct a limited number of pre-award
reviews of new supply and service contractors with
contracts of $10 million or more.
Outreach:
OFCCP will host 120 compliance events to educate
interested parties about EEO requirements in federal
contracts. The agency will host 9 national and 6
regional Webinars targeted to federal construction
contractors and new federal contractors. Additionally,
OFCCP will host 93 regional compliance
events.
What to do if you are receiving or expect to receive
ARRA funding:
- Make sure that your affirmative action
plans are up-to-date. Focus on action plans and good
faith efforts.
- Attend OFCCP's webinars and public
forums in your area.
- Review your Human Resource policies
and practices. For more sensitive analysis, meet with
your legal counsel.
- Gerstco is an additional resource you can
rely on. We can help.
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E-Verify Goes into Effect on September 8, 2009
On November 14, 2008, a new, final regulation was
released amending the Federal Acquisition
Regulation (FAR) requiring contractors and sub-contractors to use the E-Verify electronic employment
verification system.
The effective date of this regulation has been moved
out several times. Based on information from the U.S.
Citizenship and Immigration Services' Frequently
Asked Questions (June 3, 2009), and confirmed at the
recent National Industry Liaison Group (NILG), it is
believed that all contractors with federal contracts
issued on or after September 8, 2009, must enroll in
E-Verify*.
In a nutshell:
- Federal contractors not already enrolled in
the E-Verify system have 30 days from the federal
contract issuance to enroll and another 90 days to
begin using it for new hire verification.
- Contractors already enrolled in E-Verify
who are awarded contracts on or after September 8,
2009 need to update their profile in E-Verify.
- Usage of E-Verify also applies to existing
indefinite/delivery/indefinite-quantity contracts with
more than 6 months remaining and the amount of
work is substantial.
- The rule requires federal contractors to
use E-Verify for all new employees, regardless of
whether the employee is assigned to a federal
contract.
- Employees hired after November 6, 1986,
classified as "employees assigned to the contract",
performing "substantial duties under the contract"
must be verified using E-Verify.
For more information on registration and use of E-Verify or to download a user's manual, visit
http://www.dhs.gov/E-Verify
*Certain contracts are exempt. Log on to the DHS's
website for more info.
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Contact Information
phone:
408-973-1366 ext. 210
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