The Office of Federal Contract Compliance Programs (OFCCP) recently issued a new round of Corporate Scheduling Announcement Letters (CSALs), which notify an establishment that it has been selected to undergo a compliance review during the next scheduling cycle.
Executive Summary: The Office of Federal Contract Compliance Programs (OFCCP) recently issued a new round of Corporate Scheduling Announcement Letters (CSALs), which notify an establishment that it has been selected to undergo a compliance review during the next scheduling cycle. These letters are not actual audit letters but rather a courtesy notice that a compliance review will likely start in the near future. Contractors who receive such letters should take steps to ensure their affirmative action plans and adverse impact analyses are complete and ready for submission and that compensation systems are reviewed and ready to be defended.
Practical Impact:
Contractors who receive CSALs should pay special attention to the following issues, which have been the subject of recent OFCCP attention:
- Hiring Practices – Contractors should ensure their recruiting and hiring practices comply with the affirmative action requirements, that proper rejection reasons are maintained and that any areas with adverse impact are documented with job-related, nondiscriminatory reasons explaining the disparate impact.
- Compensation Issues – In light of the OFCCP's newly issued directive for analyzing pay discrimination claims, discussed in our February 28, 2013 Alert, contractors should review their compensation practices to identify any pay differentials among job groups and between racial or gender categories and the legitimate business reasons for any differentials.
- Employment Practices – Contractors should also examine the opportunities for advancement within the establishment, including job assignment, training opportunities, earning potential, and opportunities for add-ons such as bonuses, to ensure there are no racial or gender disparities in these opportunities.
The Bottom Line:
The OFCCP has become increasingly aggressive in its examination of contractors' employment practices and compliance with federal affirmative action laws. All contractors should ensure they are in compliance with these laws and any applicable record-keeping requirements.
If you have any questions regarding this Alert or your obligations as a federal contractor please contact the FordHarrison attorney with whom you usually work or Linda Cavanna-Wilk, lcavanna-wilk@fordharrison.com ,who is a member of FordHarrison's Affirmative Action/Government Contracts practice group.