Dec 02, 2014

OFCCP to Issue 2,500 Audit Notification Letters

The Office of Federal Contract Compliance Programs (OFCCP) announced recently that it will mail Corporate Scheduling Announcement Letters (CSALs) to 2,500 federal contractor establishments.  These “courtesy letters” are expected to arrive just in time for the holidays.

The OFCCP issues CSALs to contractors to provide notification that a compliance review will occur during the next scheduling cycle.  CSALs are not required by law, and do not commence an audit.  Instead, CSALs merely alert an employer that an establishment has been selected for review.  CSALs are mailed directly to the establishment (not to corporate headquarters) and addressed to the Human Resources Director, whether or not the location has such a position.  Contractors needing to confirm whether one or more of their establishments received a CSAL may fax a written request on company letterhead to OFCCP’s Division of Program Operations at (202) 693-1305.

This year in particular, contractors should take advantage of the early notice the CSAL provides.  The OFCCP recently revised its Scheduling Letter and Itemized Listing, and the changes have been called “burdensome.”  The Scheduling Letter, that initiates a review, now requires contractors to submit 22 items for desk audit. The following is a non-exhaustive list of some of the changes, all of which are effective immediately:

  • The Scheduling Letter now includes a warning stating that failure to preserve records through the final disposition of the compliance review “constitutes non-compliance.”
  • Contractors must provide individualized, as opposed to aggregated, employee compensation data, including job title, job group, EEO-1 category, base salary or wage rate, hours worked in a typical week, and any other compensation such as bonuses or commissions.
  • In addition to providing any collective bargaining agreements, contractors must also submit “any other documents [they] prepared, such as policy statements, employee notices or handbooks that implement, explain, or elaborate on the provisions of the collective bargaining agreement.”
  • New regulations implementing Section 503 of the Rehabilitation Act and VEVRAA require contractors to provide results of the contractor’s evaluation of its outreach and recruitment efforts to identify and recruit qualified individuals with disabilities and protected veterans, as well as other documentation.
  • Contractors must provide any policies related to reasonable accommodations, as well as documentation of any accommodation requests received and their resolution.

To learn more about how CSALs or a compliance review may affect your company, or if you have any questions regarding these issues, please contact your labor and employment counsel at Smith, Gambrell & Russell, LLP.

This client alert is intended to inform clients and other interested parties about legal matters of current interest and is not intended as legal advice.

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