Directive 2019-02 establishes OFCCP’s Early Resolution Procedures (ERP) and outlines general guidelines for implementation. The ERP is intended to aid contractors with multiple establishments in developing corporate-wide corrective actions to meet compliance obligations. The ERP for each violation is described below:
Non Material Violations (i.e., unacceptable AAP element):
- Should be resolved during the desk audit-- consistent with OFCCP’s current practices.
Material Violations: Non-Discrimination (i.e., record keeping & applicant tracking violations):
- OFCCP will attempt to resolve material nondiscrimination violations through Early Resolution Conciliation Agreement with Corporate-Wide Corrective Action (ERCA) which requires contractors to review a subset of its remaining establishments for similar violations and implement corrective actions as needed. The contractor will report back to OFCCP with its analysis, findings and corrective actions taken.
- OFCCP will continue to monitor the establishment and will not schedule a new compliance evaluation there for a five‐year period from the effective date of the ERCA.
Material Violations: Discrimination (i.e., hiring or steering violation):
- OFCCP will first conduct interviews with appropriate company employees and review additional data to calculate an estimated monetary remedy. If the results still indicate potential discrimination after a refined analysis, OFCCP will offer the ERP option to the contractor.
- If the contractor agrees to the ERP, they will engage in discussions with OFCCP regarding findings, remedies and corrective actions. At this time, the contractor can provide additional information for OFCCP to consider. Similar to the aforementioned ERCA agreement, the contractor will then take required steps to ensure companywide corrective action is taken.
Overall, the ERP is a positive step towards transparency, certainty and efficiency. OFCCP strongly encourages contractors with multiple establishments to resolve issues proactively through the ERP.
By Macy Cheeks, Associate Consultant at DCI Consulting Group
