OFCCP to Continue Sending Corporate Scheduling Announcement Letters Until End of Current Fiscal Year

Berkshire Associates has been informed that Patricia Shiu, the new Director of the Office of Federal Contract Compliance Programs (OFCCP), expects to continue using the Corporate Scheduling Announcement Letter (CSAL) until the end of the OFCCP’s fiscal year, on September 30, 2010. According to industry sources, Director Shiu intends to make an announcement to the contractor community “shortly.”

The CSAL is a notice sent to contractor establishments, generally to the attention of the Chief Executive Officer (or a designated point of contact) of a parent company with two or more establishments selected to undergo a compliance evaluation during the fiscal year. The CSAL is a warning of the OFCCP’s intent to conduct a compliance check, but does not guarantee an audit will occur.
 
According to the OFCCP, the main objectives of the CSAL are to:
 
  • Give contractors time to obtain management support for EEO and self-audit efforts
  • Encourage contractors to take advantage of compliance assistance
  • Encourage contractors to take advantage of the warning, and focus on identifying and correcting problem areas before the compliance evaluation
  • Help contractors manage and budget the amount of time required for evaluation activity
 
In March 2009, the OFCCP sent their second wave of audit notices to approximately 5,000 facilities. Director Shiu has not indicated when the OFCCP will release the first round of letters for this fiscal year. Also, there is no specific information on whether the OFCCP will continue to limit the number of new audit letters sent to a single contractor to 25 in a fiscal year.
 
Next Steps
Berkshire anticipates the next round of CSALs to be released before the end of the year. We recommend clients prepare for impending OFCCP enforcement activities by:
 
·       Alerting key employees, including the Chief Executive Officer, of the possibility of receiving a CSAL—let your employees know how important it is to immediately begin taking action to prepare for a compliance review 
·       Ensuring your affirmative action plan is up-to-date
·       Reviewing your affirmative action plan for potential problems areas, particular pay disparities and adverse impact
·       Contacting your Berkshire representative to ensure you are prepared for your compliance review
 

Berkshire's experts will continue to monitor for agency changes, and will keep our clients informed of any updates. For more information on the Corporate Scheduling Announcement Letter or other OFCCP enforcement initiatives, please contact Berkshire Associates at 800.882.8904 or bai@berkshireassociates.com. 

To review a copy of a sample CSAL letter, click here.