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How to Navigate OFCCP's Focused Reviews
The OFCCP is currently conducting focused reviews of contractor compliance with Section 503 of the Rehabilitation Act (Section 503) and Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).
In a VEVRAA focused review, a compliance officer will review policies and practices of a contractor related solely to VEVRAA compliance. The review will include interviews with managers responsible for equal employment opportunity and VEVRAA compliance as well as employees affected by those policies. OFCCP would also seek to evaluate hiring and compensation data, as well as the handling of accommodation requests, to ensure that protected veterans are not being discriminated against in employment.
In a Section 503 focused review, a compliance officer will review policies and practices of a contractor related solely to Section 503 compliance. The review will include interviews with managers responsible for equal employment opportunity and Section 503 compliance as well as employees affected by those policies. OFCCP would also seek to evaluate hiring and compensation data, as well as the handling of accommodation requests, to ensure that individuals with disabilities are not being discriminated against in employment.
These Focus Reviews are a Follow up the Affirmative Action Regulations Put in Place by the OFCCP to Improve Job Opportunities for Protected Veterans and Disabled Individuals
On August 27, 2013, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs announced Final Rules that make changes to the regulations implementing the Vietnam Era Veterans’ Readjustment Assistance Act, as amended (VEVRAA) at 41 CFR Part 60-300 and Section 503 of the Rehabilitation Act of 1973, as amended (Section 503) at 41 CFR Part 60-741.
VEVRAA prohibits federal contractors and subcontractors from discriminating in employment against protected veterans, and requires these employers to take affirmative action to recruit, hire, promote, and retain these veterans.
Section 503 prohibits federal contractors and subcontractors from discriminating in employment against individuals with disabilities (IWDs), and requires these employers to take affirmative action to recruit, hire, promote, and retain these individuals.
The Final Rules were published in the Federal Register on September 24, 2013, and become effective on March 24, 2014.
Highlights of the Final Rule Related to Protected Veterans Vietnam Era Veterans’ Readjustment Assistance Act , as amended):
- Rescission of 41 CFR Part 60-250: The Final Rule rescinds the outdated 41 CFR Part 60-250 in its entirety. However, veterans that were formerly protected only under Part 60-250 will still be protected from discrimination under the revised 41 CFR Part 60-300.
- Hiring benchmarks: The Final Rule requires that contractors establish annual hiring benchmarks for protected veterans. Contractors must use one of two methods to establish their benchmarks. Contractors may choose to establish a benchmark equal to the national percentage of veterans in the civilian labor force, which will be published and updated annually by OFCCP. Alternatively, contractors may establish their own benchmarks using certain data from the Bureau of Labor Statistics (BLS) and Veterans’ Employment and Training Service/Employment and Training Administration (VETS/ETA) that will be also be published by OFCCP, as well other factors that reflect the contractor’s unique hiring circumstances.
- Data collection: The Final Rule requires that contractors document and update annually several quantitative comparisons for the number of veterans who apply for jobs and the number of veterans they hire. Having this data will assist contractors in measuring the effectiveness of their outreach and recruitment efforts. The data must be maintained for three years to be used to spot trends.
- Invitation to Self-Identify: The Final Rule requires that contractors invite applicants to self-identify as protected veterans at both the pre-offer and post-offer phases of the application process. The Final Rule includes sample invitations to self-identify that contractors may use.
- Incorporation of the EO Clause: The Final Rule requires that specific language be used when incorporating the equal opportunity clause into a subcontract by reference. The mandated language, though brief, will alert subcontractors to their responsibilities as Federal contractors.
- Job Listings: The Final Rule clarifies that when listing their job openings, contractors must provide that information in a manner and format permitted by the appropriate State or local job service, so that it can access and use the information to make the job listings available to job seekers.
- Records Access: The Final Rule clarifies that contractors must allow OFCCP to review documents related to a compliance check or focused review, either on-site or off-site, at OFCCP’s option. In addition, the Final Rule requires contractors, upon request, to inform OFCCP of all formats in which it maintains its records and provide them to OFCCP in whichever of those formats OFCCP requests.
Highlights of the Final Rule Related to Disabled Individuals (Section 503 of the Rehabilitation Act of 1973, as amended):
Data Collection Requirements
As a contractor, you must document and update annually the following information:
- For Applicants: the total number of applicants for employment; the number of applicants who are known individuals with disabilities; the number of protected veteran applicants.
- For Hires: the total number of job openings, the number of jobs filled, the number of individuals with disabilities hired; and the total number of protected veteran applicants hired.
- The total number of job openings, and the number of jobs that are filled.
This data must be retained for three years.
We are here to help you collect and analyze this data and to respond effectively to the OFCCP’s focused reviews. Call us today at (770) 943 3922.
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