Being a federal government contractor comes with responsibilities. The Office of the Federal Contract Compliance Programs (OFCCP) ensures each contractor meets their compliance obligations concerning hiring and employment practices, including affirmative action, compensation and recordkeeping.
If the OFCCP audited your company, would you be prepared? Many companies find themselves ill-equipped to provide the information required for an OFCCP audit. Valuable employee time can quickly be eaten up tracking down documentation and records.
What an OFCCP Audit Entails
If the OFCCP audits your company (in what it calls a “compliance evaluation”), your company will have 30 days upon receiving a scheduling letter to submit its affirmative action plan (AAP) and supporting documents to the OFCCP. The OFCCP reviews this information and determines if there are any issues. It may also request additional information or clarification.
Before your company can meet its compliance obligations, it has to know what those obligations are. This alone can be difficult, as compliance obligations change and differ depending on the number of employees a contractor has and the amount of the government contract.
How To Keep Up With Compliance
According to the OFCCP’s enforcement statistics, the six most common violations found during a compliance review concern recruitment, recordkeeping, candidate tracking, hiring, and compensation. Any of these violations can result in hefty fines for your company.
Keeping track of all your compliance requirements in each of these areas is no easy task. Among the requirements are:
- a written AAP
- the creation of an internal audit and reporting system
- the posting of notices concerning non-discrimination and employee rights
- the retention of certain employment records
- the filing of an annual EEO-1 report with the Equal Employment Opportunity Commission
Specific requirements often change, and for this reason your compliance needs to be continually monitored and adapted to your company’s hiring and recordkeeping processes.
An automated HR system that is continuously updated as new OFCCP (and VEVRRA, section 503 of the Rehabilitation Act) regulations come into effect, saves your HR team the trouble of keeping on top of new regulations, and the headache of updating paperwork and policies to comply with them.
Be prepared for your next OFCCP audit. See a demo of the Arcoro Talent Management Software today.