The OFCCP recently published proposed changes to its audit scheduling letter and itemized listing.  If approved, these changes would substantially increase the time it takes to prepare an initial audit submission.  Below are some major proposed changes.

Documentation Requirements

Item 7 – Adds a new item requesting a list identifying all action-oriented programs designed to correct any problem areas identified in the contractor’s AAP

Item 8 and 11 – Provides more specificity on the documentation a contractor must submit regarding their Section 503 disability outreach and positive recruitment efforts and their utilization analysis

Item 12 – Provides more specificity on the documentation a contractor must submit regarding their VEVRAA outreach and positive recruitment efforts

Item 19 – Adds a new item requesting documentation of a contractor’s policies and practices regarding all employment recruiting, screening and hiring mechanisms, including the use of artificial intelligence, algorithms, automated systems, or other technology-based selection procedures

Item 25 – Provides more specificity on the documentation a contractor must submit regarding its review of personnel processes

Compensation Requirements

Item 21 – Clarifies the following:

  • Compensation must be provided for temporary employees, including those provided by staffing agencies
  • Additional compensation factors and compensation policies must be provided to the OFCCP

Item 22 – Requests the following:

  • When the compensation analysis was completed
  • The number of employees the compensation analysis included and the number and categories of employees the compensation analysis excluded
  • Which forms of compensation were analyzed and, where applicable, how the different forms of compensation were separated or combined for analysis (g., base pay alone, base pay combined with bonuses, etc.)
  • That compensation was analyzed by gender, race, and ethnicity
  • The method of analysis employed by the contractor (e.g., multiple regression analysis, decomposition regression analysis, meta-analytic tests of z-scores, compa-ratio regression analysis, rank-sums tests, career-stall analysis, average pay ratio, cohort analysis, etc.)

Comments on the proposed changes can be submitted to the OFCCP by January 20, 2023.  Please go here to view the OFCCP’s justifications for these proposed changes.  The current audit letter expires on April 30, 2023.  If approved, the OFCCP would start using the new letter sometime after that date.