The Office of Federal Contract Compliance Programs (OFCCP) released the agency's budget justification for the 2014 fiscal year, calling for a nearly $3.3 million increase in funding. The budget justification, released in April, outlines OFCCP’s plans for the new fiscal year, which begins in October. These plans include heightened scrutiny for pay discrimination, increased outreach to communities with high populations of vulnerable workers, and a commitment to getting the agency’s internet-based data collection system online. Of the initiatives found in the budget request, the $1.1 million directed to strengthening pay discrimination enforcement is perhaps the most controversial item considering the budgetary issues the federal government has been facing and the on-going failure by OFCCP to find extensive compensation discrimination during compliance reviews.
The increased focus on systemic pay discrimination is associated with initiatives growing out of the President's National Equal Pay Task Force, of which the OFCCP is a member. OFCCP's budget justification outlines the agency's plan to use the $1.1 million increase toward meeting the task force’s goals. OFCCP cited its need for statisticians at the regional level and a labor economist at the national level as well as increased compliance officer training to move forward its compensation initiatives. OFCCP's plans for increased scrutiny of compensation suggest that federal contractors and subcontractors would do well to carefully review all compensation systems, practices, and decisions.
Moving beyond pay discrimination, OFCCP outlined plans for additional community outreach in the 2014 fiscal year. By partnering with community-based organizations in areas that have high concentrations of workers who are potentially vulnerable to discrimination, the agency hopes to increase interactions with applicants and employees who may be able to help direct discrimination inquiries that occur during compliance reviews.
Another major aspect of OFCCP’s budget justification involves the agency's new Federal Contractor Compliance System (FCCS). By combining an Internet-based data collection system with statistical analysis tools, OFCCP claims that the FCCS will allow the agency to reach more timely and efficient conclusions about the data submitted by federal contractors and subcontractors. OFCCP expects that companies will be able to use a secure web portal to deliver their affirmative action plans (AAPs) electronically to the agency. OFCCP projects that the FCCS will supposedly save the agency $16 million dollars over the next 10 years.
One final aspect of OFCCP's budget justification involves the agency's commitment to additional education for compliance officers and federal contractors. OFCCP expects to provide extensive training to compliance officers in order to improve the consistency and quality of compliance evaluations. The agency also expects to provide compliance assistance to contractors to ensure that companies understand their regulatory requirements and meet their compliance obligations.
It is unclear whether OFCCP will receive any of its proposed increase in funding from Congress. It is also unclear whether OFCCP will be able to implement some of the major objectives outlined in its 2014 budget justification. For example, a requirement for companies to submit their AAPs electronically may raise significant concern among contractors. Such a requirement may also be subject to review by the Office of Management and Budget under the paperwork reduction act. The 2014 budget justification may be more important for the message it sends about OFCCP's priorities than for the additional dollars it brings to the agency's coffers.
A copy of the 2014 budget justification can be found on the documents page of our website.
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