On May 20, 2022, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) released its first Corporate Scheduling Announcement List (CSAL) for federal fiscal year 2022. The 2022 federal fiscal year runs from October 1, 2021 to September 30, 2022. The May 2022 CSAL includes 400 establishments in various industry segments throughout the United States.
Corporate Scheduling Announcement Lists
The May 2022 CSAL is the first CSAL since September of 2021 and the first CSAL for non-construction companies since July of 2021. The July 2021 CSAL included 750 establishments, and previous CSALs have included over 1,000 establishments.
A Corporate Scheduling Announcing List does NOT open an affirmative action compliance evaluation at an establishment. Instead, a CSAL is a notification to federal contractors and subcontractors that they should expect to undergo a compliance evaluation at the establishment(s) found in the CSAL. OFCCP has published CSALs on its website since 2017. Prior to that, OFCCP sent letters to either establishments or to an organization’s corporate headquarters stating that one or more establishments were going to undergo a compliance evaluation.
Number and Types of Compliance Evaluations
There are more than 300 organizations included in the May 2022 CSAL. The highest number of establishments scheduled to undergo review for any one organization on the CSAL is four. This contrasts with some previous CSALs that may have had 10 or more establishments under review for an organization. The May 2022 CSAL includes nine organizations that have functional affirmative action plan (FAAP) reviews (with three organizations scheduled for two FAAP reviews). There are also 12 organizations that have corporate management compliance evaluations (CMCEs). (CMCEs are also known as “glass ceiling” reviews.)
The May 2022 CSAL does not include companies involved in construction projects. OFCCP is currently reviewing construction companies that were part of the September 2021 CSAL. The May 2022 CSAL also does not include any type of focused reviews. OFCCP had conducted compliance evaluations focused on the affirmative action laws regarding protected veterans and individuals with disabilities during 2019 and 2020. However, the current OFCCP leadership has suspended the use of focused reviews.
Compliance Evaluations Associated with May 2022 CSAL May Begin Immediately
The May 2022 CSAL is the first CSAL to be released since OFCCP published Directive 2022-02. That directive states that OFCCP may begin compliance evaluations associated with a CSAL as soon as a CSAL is published. Directive 2022-02 rescinded Directive 2018-08, which said that OFCCP would wait to open a compliance evaluation for an organization on a CSAL until 45 days after the CSAL was published. OFCCP stated in Directive 2022-02 that the protocols found in Directive 2018-08 ran “counter to OFCCP’s goal of conducting comprehensive compliance evaluations that foster consistent accountability and timely submission of required information.”
While OFCCP is allowed to open a compliance evaluation associated with the May 2022 CSAL immediately, there is no guarantee as to when any specific compliance evaluation will start. Reviews will begin as the relevant OFCCP district office that is assigned the review has the capacity to conduct the review. There have been instances in the past when establishments on a CSAL were reviewed a year or more after the CSAL was published. Organizations on the May 2022 should expect that a review will take place even if that review does not open in the next few months.
Methodology for Developing the May 2022 CSAL
At the same time OFCCP released its May 2022 CSAL, it also released the methodology the agency used to develop this CSAL. This methodology documents states that OFCCP:
- Focused on industries that have “experienced employment growth during the pandemic”
- Included both direct federal contractors and federal subcontractors on the May 2022 CSAL
- Excluded federal contractors “that were included in the FY [federal fiscal year] 2021 supply and service scheduling list”
- Included only establishments with at least 50 employees
- Selected only two CMCEs per OFCCP region
- Attempted to assign all compliance evaluations for a parent company to one region “so that both the agency and the contractor can engage in these reviews in a coordinated manner”
It is not clear that OFCCP was entirely successful in using this methodology to select organizations for review. There are at least 40 organizations that have establishments included on both the FY 2021 and FY 2022 CSALs. There are also reports that OFCCP has scheduled establishments with less than 50 employees for compliance evaluations. It appears that OFCCP has also scheduled some of the same organizations that have been routinely reviewed during the last five years for reviews in the May 2022 CSAL. Further, it is hard to determine how OFCCP defined “industries that experienced employment growth during the pandemic,” as the May 2022 includes a cross-section of industries including manufacturing, professional services, financial services, logistics, agriculture, transportation, healthcare, and social services.
Actions to Take
Organizations that appear on the May 2022 should remember that OFCCP may open a compliance evaluation immediately. These organizations may have 30 days to submit information to OFCCP under the agency’s scheduling letter that opens a compliance evaluation, but the agency is unlikely to provide any grace period for organizations that need extra time to submit required information. Organizations expecting to undergo review should also be aware that OFCCP will be extensively focusing on compensation practices as noted in Directive 2022-01, which was released in March 2022.
DCI will continue to be a resource for the federal contractor community in regard to CSALs and other releases from OFCCP during 2022.
If you are a DCI client, your consultant will be in touch if you are listed on the CSAL.