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EEO Compliance for Federal Contractors/Subcontractors

Before starting this assignment, be sure to familiarize yourself with the OFCCP and the following laws and their amendments:

National Immigration Forum (Aug. 2018). Fact Sheet: E-Verify. Retrieved from https://immigrationforum.org/article/fact-sheet-e-verify/

U.S. Department of Labor. Office of Federal Contract Compliance Programs (OFCCP). (n.d.) About OFCCP. Retrieved at https://www.dol.gov/ofccp/aboutof.html

U.S. Department of Labor. Office of Federal Contract Compliance Programs (OFCCP). (n.d.) Executive Order 11246, As Amended. Retrieved at https://www.dol.gov/ofccp/regs/statutes/eo11246.htm

U.S. Department of Labor. Office of Federal Contract Compliance Programs (OFCCP). (n.d.) Section 503 of the Rehabilitation Act of 1973, As Amended. Retrieved at https://www.dol.gov/ofccp/regs/compliance/sec503.htm

U.S. Department of Labor. Office of Federal Contract Compliance Programs (OFCCP). (n.d.) Regulations Implementing the Vietnam Era Veterans’ Readjustment Assistance Act. Retrieved at https://www.dol.gov/ofccp/regs/compliance/vevraa.htm

U.S. Department of Labor, Office of Federal Contract Compliance Programs (OFCCP). (n.d.) Sample affirmative action programs (AAPs). Retrieved from http://www.dol.gov/ofccp/regs/compliance/aaps/aaps.htm

Case Assignment

You are an HR Manager for a large sheet metal manufacturing company. One of your largest customers has just secured a major office furniture contract with the federal government. Your customer wants your company to become a subcontractor for the project, making all of the plastic parts required. Even though it would be lucrative, there is uncertainty among your organization’s top officials about whether to join this project, given that the preparation of an affirmative action plan and the formulation of goal achievement requirements will be imposed to correct underutilization.

You have been tasked to prepare a slide presentation (10-12 slides, not counting the cover slide or the reference list slide). Include an audio component (voiceover slides), speaker notes at the bottom of each slide, or both). Watch the short YouTube video How to Add Audio into your PowerPoint for more information.

Your presentation needs to address the following:

1. Identify the EEO compliance requirements that impact a federal subcontractor.

2. Classify the important components of an affirmative action plan (expand on the goal-setting process).

3. Determine how affirmative action goals should relate to an organization’s strategic human resources plan.

4. Elucidate on your recommendations to the organization’s top officials about becoming part of this project.

Use at least five Trident Online Library sources plus any applicable background readings to support your discussion.

Online Sources

OFCCP does not want any EEO-1 pay data

Waltemath, Joy.Weblog post. CCH Work Day [BLOG]Newstex. Nov 25, 2019.

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By Pamela Wolf, J.D.

Effective immediately, the agency will not request or accept EEO-1 Component 2 pay data.

The Office of Federal Contract Compliance Programs has released its “Intention Not to Request, Accept, or Use Employer Information Report (EEO-1) Component 2 Data,” slated for publication in the Federal Register on November 25, 2019. Referencing the EEOC’s earlier notice that it does not intend to submit to the Office of Management and Budget a request to renew Component 2 pay data under the current OMB control number, and its request that Component 1 be assigned a new OMB control number, the OFCCP made clear that it will not request, accept, or use Component 2 data.

The OFCCP said that it “does not expect to find significant utility in the data given limited resources and its aggregated nature, but it will continue to receive EEO-1 Component 1 data.”

Information collection. The OFCCP and EEOC collect workforce data through the EEO-1 report. The EEOC’s legal authority to collect this data comes from Title VII, while the OFCCP’s authority derives from Executive Order 11246. The EEO-1 collects information from private employers and federal contractors about the number of employees by job category, and by sex, race, and ethnicity (Component 1). The two agencies share this information to avoid duplicative information collections and minimize the burden on employers.

Stayed and reinstated. In April 2019, a Washington, D.C. federal court, in National Women’s Law Center v. Office of Management and Budget, ordered the reinstatement of the OMB-approved 2016 revision to the EEO-1 that requires filers to additionally submit aggregated employee pay and hours worked (Component 2). The Obama-era revision had been illegally stayed by the OMB, the court concluded.

Collection not renewed. However, the EEOC, as the agency responsible for securing OMB approval of the EEO-1 data collection under the Paperwork Reduction Act, recently gave notice that it does not intend to submit to the OMB a request to renew Component 2 under the current OMB control number. It has requested that Component 1 be assigned a new OMB control number. The EEOC is contemplating the value and usefulness of the pay data collection, and to that end, heard from an invited panel of experts on November 20 (see Public hearing on EEO-1 pay data collection reveals sharp divides, November 20, 2019).

Pay data unnecessary. The OFCCP explained that it has reviewed the parameters of the Component 2 pay data collection and has determined that it does not find the data necessary “to accomplish its mission to ensure federal contractors are not engaged in unlawful pay discrimination.” The OFCCP noted that the pay data is collected in a highly aggregated format, and although it could potentially inform the OFCCP’s scheduling process for compliance evaluations, “it is too broad to provide much utility.”

The pay data is not collected at a level of detail that would permit the OFCCP to make comparisons among similarly situated employees, as required under Title VII standards that the OFCCP applies in administering and enforcing EO 11246. The OFCCP also noted that it receives up-to-date, employee-level pay data from contractors selected for compliance evaluations. This data enables the agency to identify pay disparities that may violate EO 11246 by comparing the pay of employees who are similarly situated under the contractors’ pay practices. Thus, the OFCCP does not need Component 2 pay data for that purpose.

Further, analyzing EEO-1 Component 2 pay data would put an unnecessary financial burden on the OFCCP. The agency’s limited resources do not support the enhanced scope of review of employer practices or provide the human capital and technical capacity that would be required to make use of the Component 2 data.

Will not request or accept. “Given the limited utility of the data for OFCCP’s purposes within the constraints of OFCCP’s available resources, OFCCP will not request or accept EEO-1 Component 2 data,” according to the agency’s notice. “OFCCP will continue to receive EEO-1 Component 1 data from covered contractors and subcontractors through the Joint Reporting Committee for purposes of reviewing their compliance with Executive Order 11246 and its implementing regulations, including the reporting requirements at 41 CFR 60-1.7.”

The OFCCP’s notice is effective immediately. OFCCP audits: Are you really covered?

Castleton, Richard W.Long-Term Living; New York Vol. 60, Iss. 2,  (Feb 2011): 39-40.

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The Office of Federal Contract Compliance Programs (OFCCP) enforces equal employment opportunity laws. This most prominently includes Executive Order 11246 (EO 11246), Section 503 of the Rehabilitation Act of 1973 (Section 503), and the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA). This article provides a general review of these laws, OFCCP jurisdiction, and how this impacts the long-term care (LTC) industry. EO 11246 prohibits discrimination and requires affirmative action to ensure that all employment decisions are made without regard to race, color, religion, sex, or national origin. Section 503 of the OFCCP prohibits discrimination and requires affirmative action in the employment of qualified individuals with disabilities. VEVRAA prohibits discrimination and requires affirmative action in the employment of specified categories of veterans. LTC facilities may see an increase in the number of compliance review notifications. LTC facilities should keep several things in mind. First, the OFCCP has not announced any directive targeting LTC facilities. Second, any increase in compliance reviews is most likely connected to the increased staff more than anything else.

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