Current Issues

As detailed elsewhere in this edition of HRworks Source, the OFCCP is focused on finding and resolving systemic discrimination. In doing so, the agency prioritizes its enforcement resources by focusing on the worst offenders – which means spending the most efforts on litigation-worthy cases that may result in the largest settlements.

While that effort isn’t expected to change anytime soon, it may be impacted by a recent change in OFCCP staffing. Michael Sinclair, the agency’s lead statistician, stepped down from his position to work outside of the agency. Sinclair brought statistical analysis to OFCCP audits; this disciplined approach to “stats and facts” has enabled the agency to pursue stronger legal cases and, ultimately, reap larger settlements from guilty companies.

The OFCCP’s approach to compliance audit methodology has the potential to change dramatically. HRworks specializes in auditing companies’ recruitment practices prior to an audit and suggests changes that can be made to conform with new Internet Applicant regulations. Using this proactive approach, companies can make changes at their own pace versus that of the OFCCP. The audit process begins with an assessment of recruitment process, applicable systems and technology, and utilization of third-party recruitment support. (Learn more)

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Information in recent OFCCP public presentations reconfirms the fact that statistical analysis is playing an ever-increasing role in agency audits. According to presentation attendees, the single largest violation uncovered by the OFCCP in compliance reviews is the failure to comply with federal recordkeeping regulations, which comprise as many as 1/3 of all findings of non-compliance.

Some of the violations undoubtedly stem from the “Internet Applicant” ruling that went into effect in early 2006. The ruling requires federal government contractors to collect and retain records about gender, race and ethnicity of each “Internet Applicant.” Additionally, federal contractors must maintain records of all candidates that were considered and met the basic qualifications, but did not meet all 4 prongs of the definition of an “Internet Applicant.”

Regardless of the reason, poor recordkeeping raises a red flag for agency auditors. Improper recordkeeping is also a harbinger of a systemic discrimination case and the potential fines that go with it.

So, our advice is simple – keep good records. Your C-suite will thank you.

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As an expert in compliance, we speak nationally on recruitment governance and actively facilitate industry dialogue to raise awareness and address solutions to these and other issues. Our HRworks quarterly recruitment governance summits enable us to stay on top of the changes and counsel you on real-world best practices. Additionally, our recruitment practice can help you achieve your recruitment objectives by providing scalable recruitment support. (Learn more)

Take proactive steps to improve your organization’s talent acquisition process, attract quality individuals and mitigate risk. Visit us at www.HRworks.com or call 888.409.6726.