On February 13th, the Office of Federal Contract Compliance Programs (OFCCP) issued a new directive. Directive 2019-04 establishes the “Voluntary Enterprise-wide Review Program” (VERP), outlining a new initiative to “establish a voluntary enterprise-wide compliance program for high-performing federal contractors” beginning in 2020. This directive complements Directive 2019-02 (“Early Resolution Procedures”) which offers a five-year audit immunity in exchange for a contractor’s voluntary delivery of compliance information to OFCCP while under a pending compliance evaluation or lawsuit. The VERP directive, on the other hand, offers audit immunity to contractors who are not currently in an audit. Top-performing contractors who voluntarily apply to the program will undergo a compliance review of their corporate headquarters. Those who demonstrate their successful corporate-wide inclusion and compliance programs will be removed from the OFCCP’s compliance evaluation schedules for up to five years. We recommend consulting with your Maly Consultant, corporate counsel, and outside employment attorney before applying to the program.
