With a Federal Contract Secured, Here’s How to Handle OFCCP Compliance

Meeting Office of Federal Contract Compliance Programs (OFCCP) regulations is critical to the prevention of costly violations. Though compliance can be confusing, federal contractors should be conscious of the obligations they need to meet.

The OFCCP’s Role in Federal Contracts

The OFCCP’s main function is to ensure organizations that do business with the federal government take steps to prevent discrimination based on race, color, sex, sexual orientation, gender identity, religion, national origin, disability, or status as a protected veteran. They also require employers to provide equal employment opportunities to all employees and job applicants. In addition, the OFCCP offers assistance to federal contractors to help employers maintain compliance.

Here's How to Meet Compliance

In 2022, the OFCCP is expected to start increasing enforcement of its guidelines. Here’s what you’ll need to do to maintain compliance, prevent an audit, and avoid the damaging consequences of violations.

Establish an Affirmative Action Plan (AAP): Contractors must provide an annual AAP for women and minorities, veterans, and individuals with disabilities. It must be created within 120 days of the start of the contract. Depending on the number of employees at each location, facility or establishment, and the dollar amount of the contract, the following must be upheld:

  • If your business has 50 or more employees and at least a $50,000 federal contract or subcontract, you must provide an AAP for women, minorities, and individuals with disabilities

  • If your business has 50 or more employees and at least a $150,000 federal contract or subcontract, an AAP for veterans is also required.

Recordkeeping: Collect and maintain detailed employment records when it comes to recording applicant flows, hires, compensation, promotion, demotion, transfers, terminations, and workforce reduction.

Notices and Posters: Federal contractors and subcontractors must display the Equal Employment Opportunity (EEO) poster to their employees. They should also be available for job seekers online as well if an online application system exists. Read more here (PDF).

EEO Tag Lines: When posting open positions, contractors must add an Equal Opportunity Employer tagline stating that minorities, women, veterans, individuals with disabilities, and others are encouraged to apply.

Utilization Goals and Hiring Goals: To measure success for the representation of individuals with disabilities and protected veterans, the OFCCP sets utilization goals for individuals with disabilities and hiring goals for protected veterans. There is a utilization goal of 7%, per job group, for individuals with disabilities. This means that the OFCCP wants to see 7% of your workforce, per job group, to have self-identified as an individual with a disability. There is also a hiring goal for protected veterans of 5.6%. This means that the OFCCP wants to see at least 5.6% (round up to 6%) of all your new hires to have self-identified as a protected veteran. The hiring goal for protected veterans changes annually, so be sure to review the latest figures.

Invitation to Self-Identify: Contractors must provide applicants with the opportunity to voluntarily self-identify regarding their disability status, gender, race, or protected veteran status. In addition, contractors are required to offer the disability self-identification form every five years to employees during the duration of their employment.

State Job Bank Postings: The Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) requires, federal contractors to send their job listings to the appropriate state job bank, with limited exceptions.

Best Practices

By following the OFCCP’s outlined regulations, you’ll be able to safeguard your organization from potential audits, violations that result in fines, damaged reputations, and even loss of federal contracts. Meeting government standards encourages the improvement of your diversity hiring, training and promotion practices and assists you in creating a detailed plan for every facet of the compliance process, making your organization better for everyone.

For more information about OFCCP compliance and the laws it involves, visit our recent story, The Basics of OFCCP Compliance.

Visit JobTarget’s Compliance page to start protecting your organization and contact one of our experts so you can become and stay compliant.

Disclaimer: This is not intended to offer legal advice. Secure legal counsel when ensuring government compliance.

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