OFCCP Compliance Enforcement

There are three steps that may be taken by the local OFCCP compliance office to enforce compliance:

Step 1. Upon receipt of a desk audit notice, the employer is required to provide the following:

  • A written Affirmative Action Plan
  • Proof of efforts to recruit minorities and veterans
  • I9 status report
  • Certification that the employer has a system in effect to differentiate qualified applicants from job seekers and to retain that data for analysis by each step in the selection process

If these items are submitted and the review is favorable, the desk audit is closed out. If not, then the local OFFCP office moves to step 2.

Step 2. OFCCP schedules an onsite compliance review at the location where the employer’s records are kept. This step may include differential salary or pay analysis in addition to a review of selection practices.

Step 3. If the records reviewed in Step 2 are not acceptable or the employer’s selection or compensation practices are perceived as deficient, then the OFCCP may implement a full compliance audit. The full compliance audit generally takes several weeks and involves complete review of the employer’s compensation and selection practices, including interviewing personnel and reviewing all relevant company records.

If an employer has a federal contract worth $ 50,000.00 or more or is selling, renting, or leasing goods or services totaling $50,000.00 per year to entities who use the employer’s goods or services in the performance of federal contracts, then the employer needs to have a written Affirmative Action Plan and a system to collect and maintain the data needed for compliance with EEOC reporting and differentiating applicants from jobseekers per the OFCCP definition of an applicant. To be considered an applicant under the OFCCP definition, a person must meet the following:

  1. The individual submits an expression of interest in employment through the Internet or related electronic data technologies.
  2. The contractor considers the individual for employment in a particular position.
  3. The individual's expression of interest indicates the individual possesses the basic qualifications for the position.
  4. The individual at no point in the contractor's selection process (prior to receiving an offer of employment from the contractor) removes himself or herself from further consideration or otherwise indicates that he or she is no longer interested in the position.

The OFCCP has delayed enforcement of the above definition until May 6, 2006 to allow employers time to comply. It is the employer’s responsibility to make this differentiation on every person who applies for a job and to retain that data. Thus, employers who must comply need an effective system to obtain and retain this data for both EEOC and OFCCP reporting and compliance.