The OFCCP has started September with a flurry of new activities and announcements, including updates its use of EEO-1 Component 2 data, a new CSAL for Construction Contractors, and last but certainly not least, approval for its AAP Verification Program.
OFCCP Reverses Position on EEO-1 Component 2
Effective immediately, OFCCP has rescinded the Notice of Intention Not to Request, Accept or Use EEO-1 Component 2 Data. The original notice was issued in November 2019 in which the agency stated that it did not expect to find utility in the data and that the Component 2 data was too broad to allow for comparisons among similarly situated employees “without conducting additional analysis that would put an unnecessary financial burden on the agency”.
However, in its reversal OFCCP states that the November 2019 notice was “premature and counter to the agency’s interests in ensuring pay equity.” OFCCP plans to evaluate the Component 2 data to determine whether it could be useful in selecting contractors for compliance evaluations and improve its ability to investigate potential pay discrimination “efficiently and effectively”.
Questions remain on the relevancy of compensation information from 2018 and 2019, as well as whether the Freedom of Information (FOIA) protections will apply to this data once it is in OFCCP’s possession.
New Corporate Scheduling for Construction Contractors
In other developments, the OFCCP has just published the latest Corporate Scheduling Announcement List (CSAL) for Construction Contractors. As a reminder the CSAL serves as a notification to contractors, OFCCP will not begin utilizing the list for 45-days, so you will want to ensure that you are using this time accordingly to prepare.
The current list is compiled of 400 federal and federally assisted contractors (prime and subcontractors). You can view the complete list here.
OFCCP AAP Verification Program Approved
In a blog posted earlier, Berkshire announced that the OFCCP’s Affirmative Action Program Verification Interface was approved by the by the Office of Management and Budget (OMB) on August 31, 2021. The verification program will require federal contractors to certify that they have affirmative action programs in place for covered establishments. As part of the approval, two user guides - Admin Guide; Federal Contractor User Guide – were also released. These guides provide detailed information about how federal contractors will certify their affirmative action compliance.
OFCCP’s verification website, at https://www.dol.gov/agencies/ofccp/aavi , is not yet live, but contractors will have 90 days to certify their compliance once the verification portal is available. We will provide more detailed information about this development over the coming days as we digest the new user guides. In the meantime, now is the time to ensure that your organization can certify that it has a current affirmative action program for all covered establishments.
If you have questions about any of these recent OFCCP developments, feel free to reach out to your Berkshire Consultant or contact Berkshire.