OFCCP regularly audits federal contractors for compliance with Executive Order 11246, Section 503 of the Rehabilitation Act, and the Vietnam Era Veterans’ Readjustment Act. According to Directive 2018-04, a portion of compliance evaluations scheduled in FY2019 (starting October 1, 2018) will focus on just one of those three authorities enforced by OFCCP.
While details are scarce at this time, we wanted to share what we expect to see when OFCCP starts conducting these focused reviews.
First, we expect that OFCCP will need a set of new scheduling letters, one for each type of compliance review. These scheduling letters may require OMB approval. The directive also states that each focused review will involve OFCCP coming onsite to conduct a comprehensive evaluation related to the law at issue.
One part of Directive 2018-04 that we are paying especially close attention to is the suggestion that OFCCP will also be evaluating hiring and compensation data in relation to individuals with disability and veterans. Currently, compliance evaluations evaluate this information for sex and race/ethnicity only, and at DCI we have methodological concerns with attempting to analyze adverse impact or compensation disparities based on disability or veteran status. We will explore some of these concerns in a future blog. Stay tuned!
By David Sharrer, M.S., Senior Consultant at DCI Consulting