Complete AAP News - January 2000
OFCCP Issues New EO Survey
OFCCP has submitted a draft EO Survey to the Office of Management and Budget that would require government contractors to provide race and gender information for applicants, hires, promotions, terminations and current employees. In addition, the 10-page survey asks that compensation and seniority data be broken down by race and gender in each EEO category. Should the survey gain approval, total annual compensation for all employees and the lowest and highest annual compensation for any single employee must be provided for minority females, non-minority females, minority males and non-minority males.
OFCCP plans to send out the survey next April to approximately 7000 contractors that it has identified as "potentially out of compliance" with the affirmative action requirements. It is estimated that as many as 60,000 of the approximate 100,000 government contractors required to have affirmative action plans will receive the survey during the initial phase-in period.
The information collected on the surveys will be used to target contractors for future compliance reviews. Companies receiving one of these surveys would be well advised to analyze the data for adverse impact against females and minorities before submission to OFCCP. If adverse impact is discovered, the contractor can begin to formulate defenses based on more appropriate analyses, such as comparing compensation of employees with the same job rather than all employees within an EEO category. Contact Yocom & McKee, Inc. for more information or assistance with this analysis.
New Scheduling Letter Seeks Salary Information
A new scheduling letter used for compliance reviews has also been proposed by OFCCP. If approved, the letter will include a new item in the existing list contractors are required to submit during the desk audit phase. This new item asks for a summary of compensation data that is listed by salary range or grade and that shows the total number of employees by race and gender and that shows the total compensation by race and gender.
Last year OFCCP attempted to obtained detailed wage and salary information for all employees during the initial phase of an audit without getting OMB approval. OFCCP postponed this attempt after meeting strong opposition from contractors and employer groups. The request of this data at such an early stage of the audit is viewed as nothing more than a fishing expedition and as unreasonably burdensome to contractors.
In the past, contractors have been successful in restricting the type and amount of compensation data submitted to potential discrimination issues that are uncovered during the desk audit. If there is no potential salary discrimination issue for a particular job group, the contractor should not be required to submit salary data for that group. For instance, if a management job group currently has no females or minorities, there would be no reason to submit salary data for that management group. There must be females or minorities in the group to have salary discrimination.
New Version of Complete AAP
A new release of the Complete AAP software is planned for this year. Because the new version will retain much of the look and feel of the old version, current users can begin using the upgrade immediately. Many new features, such as a new import wizard that automatically detects the type and layout of the file being imported, have been added to make affirmative action reporting easier.
The Commission is urging public disclosure of race, gender and ethnicity information of top-level company officials stating such action "is an effective incentive for other companies to develop diversity programs." This could be done by allowing public access to the EEO-1 Report filed each year by federal government contractors and other employers with 100 or more employees.
A salary analysis report has also been added that allows the user to prepare the type of analyses used by OFCCP during audits and conduct significance tests to help defend claims of wage and salary discrimination.
During 1999, OFCCP settled into four methods of conducting compliance reviews. Regulations have replaced the previous "all or nothing approach" with any one or a combination of the following compliance evaluation methods:
- a compliance check,
- an off-site review of records,
- a focused review, and
- a compliance review.
Contractors selected for a "compliance check" are sent a scheduling letter that requests three items:
- a prior year progress report,
- job openings listing information, and
- a listing of any accommodations made for the disabled.
The scheduling letter normally gives the contractor only three days to make the material available. A "Closure Letter" that specifies the agency's findings is issued after the compliance check is completed. Contractors who refuse OFCCP access or fail to provide the requested data will be selected for another of the compliance evaluation methods. If you are selected for a compliance check, The Complete AAP is able to produce a "Goals Progress Report" that nicely meets the OFCCP's request for a prior year progress report. A document that lists both the agencies you are using for job openings, and some samples of actual listings suffices for item #2. A third document that describes any accommodations made for disabled employees and applicants should be drafted for item #3. If you have not been requested to make any accommodations, simply state this on your letter.
An "off-site review" of records is also referred to as a "desk audit." In this case you will receive a letter requesting the submission of your current AAP and supporting documentation, that is to be sent within 30 days. In concluding their review, OFCCP may issue a "closure letter" or they may proceed on to either a focused review or a full compliance review. Be sure to keep copies of your AAP and any documentation submitted to the OFCCP.
A "focused review" may result from a "desk audit" where the OFCCP has questions about specific areas of the AAP or if it alleges that violations have occurred. The review usually includes an on-site visit by an OFCCP representative, interviews with employees, and a review of documentation.
A "Compliance Review" also begins with a "desk audit," but does not focus on specific problem areas. Rather, this examination consists of a comprehensive on-site review of records and interviews. This standard review has been the mainstay of the OFCCP for the past 20 years.
The OFCCP now has the authority to use any one or more of these methods of assessing compliance in any order. As always, if you have any questions about your affirmative action obligations or OFCCP procedures call Yocom & McKee, Inc.
Employment Tracker Upgrade Available
Due to changes in the reporting requirements for veterans, we have made a free upgrade of the Employment Tracker software available to our users at our website at www.yocom-mckee.com. This latest version will allow users to track all eligible veterans and produce the new VETS 100 report. Contractors were required to begin tracking veterans under the new definitions during the third quarter of 1999.
The Complete AAP News is published by Yocom & McKee, Inc. to inform users of The Complete AAP and Employment Tracker software of changes in affirmative action laws and regulations, review current activities at the Office of Federal Contract Compliance Programs (OFCCP), and share tips and new information about the software.
