Saturday, April 27, 2013

OFCCP Scheduling Process Aimed at Larger Organizations?

The most recent release of pre-scheduling notices by OFCCP seems to be following certain patterns that were evident in the pre-scheduling notices sent out by OFCCP in late 2012.  It appears both from experience with our clients and from discussions we've had with others that OFCCP is targeting larger organizations.  These larger organizations are receiving a disproportionate number of pre-scheduling notices.  John Fox of Fox, Wang & Morgan has also reported that OFCCP is disproportionately selecting certain industries for review, including the healthcare and manufacturing sectors.

The fact that OFCCP is targeting certain types of companies and certain industries negates the long-standing idea that OFCCP uses a neutral, unbiased tool to select federal contractors and subcontractors for review.  OFCCP's decision to conduct multiple reviews at the sites of larger federal contractors and subcontractors appears to be part of the agency's desire to conduct corporate-wide reviews of certain companies.  While it is unclear whether OFCCP has the right to conduct such corporate-wide reviews, the agency seems to be making adjustments to its scheduling process that are allowing OFCCP to get a broader picture of what happens in certain larger organizations.

The current tool used to select companies for review, the Federal Contractor Selection System (FCSS), uses data from EEO-1 reports, history of compliance reviews, number of discrimination complaints, and various other factors to help OFCCP determine which companies to review.  Some of the factors used by the FCSS and how these factors are weighted is a closely-guarded secret.  While OFCCP states on its website that the FCSS is a "neutral system," the agency's reviews during federal fiscal year 2013 (which started in October of 2012) appear to be anything but random.

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