OFCCP Issues Advance Notices of Possible Contractor Audits
For the first time in almost two years, on February 17, 2017, the Office of Federal Contract Compliance Programs issued a new set of Corporate Scheduling Announcement Letters (CSAL). Some 800 establishments were targeted.
What is a CSAL and why should you care?
The CSAL is advance notice to a contractor that one or more of its establishments has been selected to undergo a compliance evaluation during the scheduling cycle. Importantly, it is not the actual letter scheduling a compliance evaluation. It is advance warning that your establishment has been targeted.
According to the OFCCP, the purpose of a CSAL is to:
- Provide the contractor establishment’s HR staff an opportunity to obtain management support for EEO and self–audit efforts;
- Encourage contractors to take advantage of OFCCP compliance assistance;
- Encourage contractors to focus on self–audit efforts that, if problems are adequately analyzed and corrected, saves OFCCP time/resources when the OFCCP does its evaluation; and
- Help contractors manage/budget the amount of time required for the OFCCP audit.
If selected for a compliance evaluation, the identified establishment will be sent a formal Scheduling Letter and Itemized Listing to start the evaluation process. At that point, a contractor will have 30 days to send its affirmative action plan (AAP) and a myriad of supporting documents to OFCCP.
What should contractors do now?
First, alert all your establishments to be on the lookout for a CSAL letter. The notice is generally addressed to “Human Resource Director” (rather than a specific individual) at the establishment. So check with Human Resources, receptionists, or other local managers about whether they have received a notice from the OFCCP.
Second, take advantage of the advance notice to review your AAP and supporting applicant, hire, compensation and other data and resolve any concerns before receiving notice of a compliance review. Some advance work now can avoid significant liability later in the event of a compliance review.
Please contact Miller Johnson’s Affirmative Action and Government Contractors practice group attorneys if you have questions about this or any other OFCCP issue.