ComplianceAgencyFocusesOnCertainHigh-DollarProjects

from Southeast 15, July 26, 2023

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COMPLIANCE from page 1 cial scheduling letter as advance notice of their respective audit, to ensure companies are in compliance before the audit.

Keeping an Eye On Audits

“The construction industry should monitor OFCCP’s regulatory requirements for construction contractors,” wrote Lisa Marsh, Jackson Lewis Law, which specializes in workplace law.

She said now is the time for contractors to review their company’s compliance program with an eye to making improvements where necessary.

“Noncompliant contractors may face technical or discrimination violations and, in extreme circumstances, contract cancelation and debarment,” said Marsh.

The OFCCP has a list of 16 mandatory affirmative action steps, contained in a guide published by the agency. Marsh points to five major categories included in OFCCP’s Construction Contractors Technical Assistance Guide. These categories are recruitment practices, training, implementation of EEO policy, analyzing personnel activity and solicitations/contracts with subcontractors.

Specifically, diversity recruitment is one of the most frequently cited OFCCP audit violations, said Marsh.

“Many contractors rely on unions to fill construction jobs, and many are unaware of their requirement to separately engage in diversity recruitment.”

Shesaidinworkingcloselywithunionsto engage diversity organizations, contractors can neglect their obligation to demonstrate compliance. These companies also must analyze their personnel activity to conform with Uniform Guidelines on Employee Selection Procedures.

The goal should be to ensure one race or gender is not adversely impacted by the contractor’s hiring practices.

“This requires the contractor to not only solicit and maintain the gender and race of its employees, but to also track its applicants, including demographic information,” said Marsh.

Other contractor requirements include posting notices in employee areas, and notifying OFCCP of certain subcontracts within 10 days, she said.

“Contractors with a $50,000 and $150,000 non-federally assisted contract must comply with OFCCP’s regulations related to individuals with disabilities and protected veterans.”

Mega Projects Under Microscope

The OFCCP also has certain high-dollar projects on its radar. The agency’s Mega Construction Project Program was launched in March of this year.

The program includes 12 federally funded projects with a value of $35 million or more and a timeline of at least one year. After the spring announcement, OFCCP held a public information session to outline plans for working with contractors.

The agency intends to work throughout the project with the direct and subcontractors awarded these jobs.

“OFCCP will require the employer working on the selected Mega Projects to participate in EEO Committee meetings,” said Marsh. “The meetings will include relevant unions, diversity recruitment organizations, and, potentially, other relevant government enforcement agencies.”

The increased industry attention is part of a move by Director JennyYang, to reinvigorateOFCCP’soversightofaffirmativeaction compliance efforts. The agency plans to engage contractors and subs at the pre-bid and post-bid stages to provide ongoing compliance assistance.

OFCCP also will evaluate contractors’ efforts to recruit and utilize talent from underrepresented backgrounds.

“OFCCP touts these projects as examples of how involvement early and often can positively affect the community,” according to Jackson Lewis Law. “With the launch of this new program, construction contractors on Mega Projects can expect their chances of being audited by OFCCP to spike.”

Dissecting Audit Process

In evaluating contractors, OFCCP looks at all federal, federally assisted and non-federal construction projects across all counties in a geographic area. Understanding the OFCCP’srequirementscanhelpacontractor prepare for an audit and reduce the risk of costly settlements.

Human resources specialist Berkshire saidOFCCPexiststoensurethattheselected contractor is fulfilling contractual affirmative action program obligations. The agency wants to see regularly prepared plans, plan compliance with regulations, requisite data and complete annual data analyses.

“The OFCCPalso reviews whether a contractor has engaged in any discriminatory hiring, promotion, termination or pay practices,” wrote Berkshire.

This is done by evaluating detailed personnel activity and compensation data about all employees covered by the affirmativeactionplanunderreview.

“The agency recovers money from the contractor at fault to repay applicants and employees for missing back pay and salary adjustments.”

The agency can require that contractors establish hiring goals as part of a resolution and can debar non-compliant contractors from federal contracting work.

Qualifying contractors are required to maintain up-to-date affirmative action plans and data regarding personnel decisions and other employment records. This data should be analyzed regularly to monitor for OFCCP compliance red flags, suggested Berkshire.

“Each employee must be included in the affirmative action program of the establishment at which he or she works.” woc crawler cranes have been built in unmatched productivity on the most ts.Today, our portfolio includes models backed by an expe from coast to coast.

Covered contractors have detailed recordkeeping obligations and must perform annual analyses of their personnel activity, according to Berkshire. That includes applicant, hiring, promotions, terminations and compensation systems. And contractors must evaluate workforce representation against expected availability to determine if annual placement goals should be established.