Federal Contracting (OFCCP) Essentials

Federal Contracting (OFCCP) Essentials

Welcome This training course was developed by WeComply, a leading provider of ethics and compliance training since 1999. The course is also available online from any Internet-connected computer. WeComply offers 60+ courses on a wide range of business ethics and compliance topics. Each course helps employees spot key compliance issues and respond appropriately. This course is designed and licensed for classroom use in parallel with WeComply's online course on the same topic. This course may not be hosted on a learning management system or distributed to employees individually by electronic or other means without WeComply's prior authorization. For more information about this course or others, whether for classroom use or online access, please e-mail info@wecomply.com or call 1-866-WeComply.

Introduction Welcome to our OFCCP Essentials training course. This course explains the basic requirements that our organization must meet when contracting with the federal government. Keep in mind that this material is provided for informational purposes only and is not intended as legal advice. If you have questions about how any of this material applies to your job responsibilities, please direct them to your supervisor or the Legal Department. 1 of 42

The Law of the OFCCP Office of Federal Contract Compliance Programs (OFCCP) is a part of the U.S. Department of Labor OFCCP rules require federal contractors and subcontractors to take affirmative action to employ and advance women, minorities, veterans and the disabled Authority: • Executive Order 11246 • Section 503 of the Rehabilitation Act of 1973 • Vietnam Era Veterans' Readjustment Assistance Act of 1974 • Americans with Disabilities Act of 1990 • Executive Order 13496 2 of 42

The Law of the OFCCP (Cont’d) Office of Federal Contract Compliance Programs (OFCCP) is a part of the U.S. Department of Labor OFCCP rules require federal contractors and subcontractors to take affirmative action to employ and advance women, minorities, veterans and the disabled Authority: • Executive Order 11246 • Section 503 of the Rehabilitation Act of 1973 • Vietnam Era Veterans' Readjustment Assistance Act of 1974 • Americans with Disabilities Act of 1990 • Executive Order 13496 3 of 42

Protected Classes The OFCCP monitors federal contractors and enforces affirmative action for — • Women • Minorities • People with disabilities • Protected veterans • Special disabled veterans 7 of 42

Protected Classes (Cont’d) The OFCCP monitors federal contractors and enforces affirmative action for — • Women • Minorities • People with disabilities • Protected veterans • Special disabled veterans 8 of 42

Equal Opportunity Clauses "Equal opportunity" clauses require that we — • Not discriminate against any employee • Take affirmative action to ensure we provide equal opportunity in hiring and employment • Maintain employee facilities that are not segregated • Accommodate employees' religious practices unless doing so causes our organization undue hardship • Notify employees of their equal-opportunity rights through workplace postings 12 of 42

Equal Opportunity Clauses (Cont’d) "Equal opportunity" clauses require that we — • Not discriminate against any employee • Take affirmative action to ensure we provide equal opportunity in hiring and employment • Maintain employee facilities that are not segregated • Accommodate employees' religious practices unless doing so causes our organization undue hardship • Notify employees of their equal-opportunity rights through workplace postings 13 of 42

Equal Opportunity Clauses (Cont’d) "Equal opportunity" clauses require that we — • Not discriminate against any employee • Take affirmative action to ensure we provide equal opportunity in hiring and employment • Maintain employee facilities that are not segregated • Accommodate employees' religious practices unless doing so causes our organization undue hardship • Notify employees of their equal-opportunity rights through workplace postings 14 of 42

Affirmative Action Programs The OFCCP requires affirmative action programs (AAPs) that — • Ensure nondiscriminatory recruitment, selection and promotion policies and practices • Are tools to ensure equal employment opportunity and do not contain quotas • Address veterans and individuals with disabilities and gender and certain minority-employment issues AAPs may be combined or maintained separately Exclusion of religious and ethnic groups from any job levels will require us to take outreach and recruitment measures 15 of 42

Affirmative Action Programs (Cont’d) The OFCCP requires affirmative action programs (AAPs) that — • Ensure nondiscriminatory recruitment, selection and promotion policies and practices • Are tools to ensure equal employment opportunity and do not contain quotas • Address veterans and individuals with disabilities and gender and certain minority-employment issues AAPs may be combined or maintained separately Exclusion of religious and ethnic groups from any job levels will require us to take outreach and recruitment measures 16 of 42

Pop Quiz! Upon review of its employment practices, XYZ Inc. found that Greeks were under-represented in its management positions. According to OFCCP rules, must XYZ engage in affirmative-action efforts to rectify this? • Yes, XYZ must actively recruit Greeks through outreach efforts. • Maybe, if Greeks are also under-represented in non-management positions. • No, because Greeks are not a covered minority. 21 of 42

Statistical Analysis We must compile data indicating whether our practices have had an adverse impact on employment opportunities and maintain the records by sex for — • Blacks • American Indians • Asians • Hispanics • Whites We must identify the factors used to establish compensation levels 22 of 42

Statistical Analysis (Cont’d) We must compile data indicating whether our practices have had an adverse impact on employment opportunities and maintain the records by sex for — • Blacks • American Indians • Asians • Hispanics • Whites We must identify the factors used to establish compensation levels 23 of 42

Paying for Unequal Pay Drug Company Agrees To Rectify Gender-Based Pay Disputes AstraZeneca, a pharmaceutical company that holds a $2 billion contract with the U.S. Department of Veteran's Affairs, reached a settlement in an OFCCP case in which the agency accused the company of violating Executive Order 11246 by discriminating against women. The OFCCP alleged that AstraZeneca paid its female sales specialists on average $1,700 less than men in comparable positions. The company will pay $250,000 to the 124 women involved in the case and work with the OFCCP to conduct a statistical analysis of the base pay of 415 other employees. AstraZeneca agreed to adjust the salaries of these employees if they find similar pay disparities in the analysis. 24 of 42

Selection Procedures Selection procedures must comply with equal opportunity laws and employment decisions must be non-discriminatory Employee selection procedures cover — • Interviews • Review of experience and education from application forms • Work samples • Job requirements • Evaluations of performance A selection procedure that has an adverse impact on employment opportunities is considered discriminatory unless it is validated 25 of 42

Selection Procedures (Cont’d) Selection procedures must comply with equal opportunity laws and employment decisions must be non-discriminatory Employee selection procedures cover — • Interviews • Review of experience and education from application forms • Work samples • Job requirements • Evaluations of performance A selection procedure that has an adverse impact on employment opportunities is considered discriminatory unless it is validated 26 of 42

Recordkeeping Obligations We must retain all personnel and employment records, including — • All records pertaining to employment actions and terms • Job advertisements and postings • Electronic applications, resumes, etc. (e.g., on-line resumes, internal and external resume databases) for anyone considered for a particular position • Records that identify anyone we contacted concerning their interest in a particular position • Interview notes • Tests, test results and physical-examination results 29 of 42

Recordkeeping Obligations (Cont’d) We must retain all personnel and employment records, including — • All records pertaining to employment actions and terms • Job advertisements and postings • Electronic applications, resumes, etc. (e.g., on-line resumes, internal and external resume databases) for anyone considered for a particular position • Records that identify anyone we contacted concerning their interest in a particular position • Interview notes • Tests, test results and physical-examination results 30 of 42

Pop Quiz! While Jean, an XYZ Inc. employee, was sifting through XYZ records, she saw some files related to an OFCCP complaint against XYZ that was filed five years ago. How long must XYZ keep these files? • One year. • Two years. • Until the final disposition of the complaint. 34 of 42

Notification of Employee Rights Executive Order 13496 requires contractors to inform employees of their rights under the NLRA by — • Posting a copy of an official U.S. Department of Labor (DOL) NLRA notice conspicuously • Posting a link electronically directly to the DOL online poster • Including a provision requiring compliance with the above posting requirements in all non-exempt contracts 35 of 42

Notification of Employee Rights (Cont’d) Executive Order 13496 requires contractors to inform employees of their rights under the NLRA by — • Posting a copy of an official U.S. Department of Labor (DOL) NLRA notice conspicuously • Posting a link electronically directly to the DOL online poster • Including a provision requiring compliance with the above posting requirements in all non-exempt contracts 36 of 42

Compliance Evaluation OFCCP evaluates compliance through — • Compliance reviews • Off-site reviews of records • On-site compliance checks • Focused reviews 37 of 42

Compliance Evaluation (Cont’d) OFCCP evaluates compliance through — • Compliance reviews • Off-site reviews of records • On-site compliance checks • Focused reviews 38 of 42

Compliance Evaluation (Cont’d) OFCCP evaluates compliance through — • Compliance reviews • Off-site reviews of records • On-site compliance checks • Focused reviews 39 of 42

Enforcement and Sanctions Conciliation agreement: Agreement between OFCCP and contractor that is intended to correct material violations and remedy effects of past noncompliance If conciliation efforts fail: Administrative law judge may hear the matter and recommend significant sanctions, including — • Withholding of progress payments • Cancellation, suspension or termination of government contracts • Debarment for an indefinite time • Debarment for a fixed term of six months to three years Cases may also be referred to the Department of Justice for judicial enforcement 40 of 42

Enforcement and Sanctions (Cont’d) Conciliation agreement: Agreement between OFCCP and contractor that is intended to correct material violations and remedy effects of past noncompliance If conciliation efforts fail: Administrative law judge may hear the matter and recommend significant sanctions, including — • Withholding of progress payments • Cancellation, suspension or termination of government contracts • Debarment for an indefinite time • Debarment for a fixed term of six months to three years Cases may also be referred to the Department of Justice for judicial enforcement 41 of 42

Final Quiz 42 of 42

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Federal Contracting (OFCCP) Essentials