Office of Federal Contract Compliance Programs (OFCCP) has entered into a conciliation agreement with LandCare USA, LLC, formerly known as TruGreen LandCare to settle allegations of hiring discrimination at its Austin, TX location. OFCCP alleges that the company discriminated against female applicants for positions in its laborer job group from January 2011 through at least July 2014, and against black and white applicants for positions in the same job group from January 2012 through at least December 2013.
In October, Office of Federal Contract Compliance Programs (OFCCP) filed its first administrative lawsuit against a federal contractor since President Trump took office. The complaint was filed against Advance2000 Inc., a New York-based information technology services firm, after the company refused to produce reports it agreed to submit to the OFCCP as part of a conciliation agreement.
The U.S. Chamber of Commerce recently released a report entitled Office of Federal Contract Compliance Programs: Right Mission, Wrong Tactics—Recommendations for Reform critiquing some of the recent enforcement practices of the Department of Labor’s (DOL’s) Office of Federal Contract Compliance Programs (OFCCP).
“Am I being compensated fairly?” and “I haven’t had a review in three years” are just some conversations that may be floating around organizations regularly between employees. These topics of conversation could spell trouble in an Office of Federal Contract Compliance Programs (OFCCP) audit for Human Resources departments. OFCCP audits today could probe individual compensation differences on a case by case basis by analyzing pay differences by job title for one contractor and salary grade or Affirmative Action Plan (AAP) job group for another. From a risk management perspective, the general argument for internal pay equity is a rational one: to avoid legal action and lawsuits stemming from unfair compensation discrimination claims. It is critical for contractors to establish an internal pay equity structure and if appropriate, to communicate such structure and processes to employees. From there, contractors should review pay annually, and investigate unexplained differences in pay. If a stated contributing factor to pay, decisions should tie back to overall performance, as well as additional factors like years of experience and degree.
According to a news report by the Miami Herald, Florida attorney Craig Leen will serve as a senior adviser to Labor Secretary Alexander Acosta. In an interview with the Miami Herald, Leen described “his political post, approved by the White House, as overseeing compliance rules for government contractors.” This role sounds very similar to the role of the Director at the Office of Federal Contract Compliance (OFCCP) which has been vacant since Patricia Shiu left in November 2016. However, we have been unable to confirm with the Department of Labor if in fact Leen will be the next OFCCP Director. Tom Dowd, a career government employee, has served as the Interim Director role since Shiu’s departure.
The Department of Labor’s Veterans’ Employment and Training Service (VETS) announced a new program to recognize employers leading the way in Veteran employment. The Honoring Investments in Recruiting and Employing (HIRE) American Military Veterans Act was signed into law in May, and the rule implementing the program was announced as part of 2017 Veterans Day ceremonies. The HIRE Vets Medallion Program will highlight organizations with successful programs to recruit and retain Veterans.
New Program to Encourage Veteran Recruitment Efforts
Lynn Clements, Berkshire’s Director of Regulatory Affairs, discusses steps companies can take to correct inequities with Montgomery County SHRM members during their December meeting. In her presentation, “Closing the Gap: Strategies for Managing Pay Equity,” Lynn will also share tips on how to employ best practices in fair pay and guidance on the analysis of compensation data on Wednesday, December 20, 2017.
Closing the Gap: Strategies for Managing Pay Equity