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Yocom & McKee often has several clients actively involved in OFCCP compliance reviews during any given week. We have noticed an increase in the number of companies selected for compliance reviews in 2003.
OFCCP Director Charles James recently stated that he intends to focus primarily on systematic discrimination issues by concentrating on auditing larger establishments. Part of this strategy involves scheduling more compliance reviews and emphasizing the Desk Audit review.
A typical compliance review scheduling letter requests a copy of your current affirmative action plans for women & minorities, and veterans & disabled. An attached itemized listing then requests copies of EEO-1 reports, preceding AAP goals, progress toward those goals, and data on employment activity (applicants, hires, promotions and terminations). A sample Scheduling Letter, Itemized Listing and explanation is available by clicking on Maintenance Releases on our web site at www.yocom-mckee.com.
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Receipt of a Scheduling Letter initiates a Desk Audit. A desk Audit was followed by an On-site visit. The OFCCP now appears to be using the Desk Audit as a screening mechanism. Only those contractors that exhibit identifiable problems are subject to an On-site investigation.
OFCCP's new procedure gives companies an opportunity to avoid costly and time-consuming On-site investigations. The new procedure, does not exempt anyone from closer scrutiny. It is more important than ever to completely address all the items in the scheduling letter and itemized listing. In addition, pay particular attention to the following:
1. Review prior Conciliation Agreements for compliance. (These are agreements with the OFCCP that are the result of previous Compliance Reviews)
2. Review your affirmative action plan to be sure that it contains all the required elements.
3. Review your Annual Goals report to ensure that goals were set for each underutilized job group and
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that the goal is equal to availability as noted on the Availability Analysis.
4. Be prepared to explain adverse impact, failure to meet goals, and declines in protected group representation. If these conditions exist, give legitimate reasons.
5. You should closely review any Job Group that fails the Adverse Impact Analysis. If the statistical analysis reveals what appears to be a problem, you should attempt to discover any nondiscriminatory causes. For example, where an Adverse Impact Analysis of Applicant Flow shows that the male hire rate significantly exceeded the female hire rate, you should examine each applicant and consider the following: Were all persons who applied minimally qualified? Were there persons who did not complete the application process? Were there persons who withdrew from the process by accepting another job or refusing a test? These people can arguably be eliminated from the "applicant pool." Any applicant who was offered a position, but turned it down should be noted as well. Look over interview questionnaires and notes by recruiters.
6. Review last year's goals and this year's Goals Progress report. You should
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