Thursday, October 2, 2014

OFCCP COMPLIANCE CHECKS ARE BACK

The Department of Labor's Office of Federal Contract Compliance (OFCCP) announced this week that the Office of Management and Budgeting (OMB) had approved the revised scheduling letter and itemized listing. We all already know this, right?

In that same news release, however, is a brief mention of a "compliance check" and contains a link to the Compliance Check Letter. Compliance Checks were one tool that OFCCP used in years past to conduct brief compliance assessments as well as a means of identifying federal contractors for full compliance evaluations based on those assessments.

For those of you not familiar with the Compliance Checks of years past, here is how the process works. OFCCP sends you a letter and requests the three items listed below. The letter says that you will receive a call from an OFCCP Compliance Officer (CO) to schedule an on-site so that the CO can inspect these three items. The new Compliance Check procedures now allow an alternative to the on-site and permits the company to submit the items by USPS or email within the 30 days.
  • Your AAP results for the preceding year (41 CFR § 60-1.12(b)).
  • Examples of job advertisements, including listings with state employment services (41 CFR § 60-1.12(a), § 60-300.80, and § 60-741.80).
  • Examples of accommodations made for persons with disabilities (41 CFR § 60-1.12(a), § 60-300.80, and § 60-741.80).
We will keep you posted as we hear more about OFCCP's approach in implementing the new Compliance Checks.

Wednesday, October 1, 2014

OFCCP SCHEDULING LETTER UPDATE

As we indicated in our Kairos News Feed of September 30, 2014, the much anticipated new OFCCP Compliance Evaluation Scheduling Letter, along with the Itemized Listing, was approved by OMB on September 30, 2014. Yesterday, the OFCCP announced that the Letter and Listing became effective October 1, 2014. However, OFCCP went on to say that it will not schedule supply and service compliance evaluations between October 1 through October 15, 2014 so that contractors can use this period to review and become acquainted with the new letter and itemized listing. See link below for accessing the Compliance Evaluation Scheduling Letter.

Tuesday, September 30, 2014

The New 'Pre-Approved' Scheduling Letter

In 2011, the OFCCP proposed to the Office of Management and Budgeting (OMB) significant changes to the Scheduling Letter (and itemized listing) that is sent to Federal Contractors to initiate a compliance audit. After holding our breath for 3 years, the OFCCP announced this week that OMB has approved a new Scheduling Letter.

Some of the most substantive changes expected include:
  • The new scheduling letter, under Item 11, will require contractors to submit individualized compensation data as of the date of the contractor's workforce analysis in its AAP, to include the job title, job group and EEO-1 category for each employee.
  • Per the scheduling letter, personnel activity data will be submitted by the five specified race categories (Black, Hispanic, Asian, Native American, and TOMs) instead of by non-minority/minority status.
  • The scheduling letter has been changed to reflect recent regulatory changes implemented by Section 503 and VEVRAA.
  • OFCCP has also defined compensation to include consideration of hours worked, incentive pay, merit increases, locality pay, and overtime.
The good news for Kairos clients is that the first two items listed above are already incorporated into our routine annual AAP preparation and audit processes and, thus, will result in no change (or burden).

One of the most significant redactions from the scheduling letter is the elimination of the proposed requirement that would force contractors to submit personnel activity data (Hires, Promotions and Terminations) by job title AND job group. Instead, the final scheduling letter will allow contractors to submit data by job title OR job group.

Upon completion of the final changes to the Letter, it appears that OMB will approve OFCCP's immediate execution of the letter.

Monday, September 15, 2014

GOOD NEWS - BAD NEWS - GOOD NEWS

It is with both joy and sadness that we announce that Lisa Kaiser will be pursuing her legal career through her law firm, Kaiser Law Group, PLLC. While we are grateful for our three year association and will miss her both professionally and personally, we wish her the very best in her new venture. We will, however, continue to collaborate with Lisa in various areas moving forward.

Wednesday, August 13, 2014

EEO-1 and VETS 100A Filing Deadline

What a busy time of year this is! The end of summer and back to school. Many clients are nearing the end of their fiscal year or are working on their AAP data. This is also annual report time for federal contractors.

Both the EEO-1 Survey and VETS 100/100A Contractor Reporting systems are open. Federal contractors are required to file EEO-1 and VETS 100/100A reports if they meet the requirements. In the event of an OFCCP audit you should expect to be asked to provide copies of your reports. Kairos Services is here to help. We can review your reports and compare them to your AAP for consistency in reporting.

Friday, August 8, 2014

DOL Releases Proposed Rule to Collect Annual Compensation Data From Federal Contractors and Subcontractors

Yesterday the U.S. Department of Labor issued a proposal to collect summary data on how federal contractors and subcontractors pay their employees. This Notice of Proposed Rulemaking will be published in Friday's edition of the Federal Register and open for public comment from August 8 - November 6, 2014.

This could have a significant impact on your Company's workload and the results of compensation findings during OFCCP audits. We encourage our clients to read the proposed rule when it is released and submit comments. Below is the press release announcing this action. More information on the NPRM and how to comment can be found at www.dol.gov/ofccp/EPR.

Thursday, August 7, 2014

How will Companies be selected for audits? Compensation!

No sooner did we think the new regulations for individuals with disabilities and protected veterans were the game changers; we find that OFCCP is moving toward creating a new day for compensation analysis for federal contractors and subcontractors. A review of the Conference Agenda at the ILG National Conference in Washington, DC, this week shows a multitude of workshops devoted to compensation. From Compensation 101 to How to Investigate Compensation Disparities to Equal Pay Enforcement to Moving Beyond Regression, there are plenty of compensation workshops for practitioners to select from. DOL's stunning Press Release announcing the proposed rulemaking which intends to require annual reporting to OFCCP by federal contractors and subcontractors of their workforce's compensation in the midst of the conference caused quite a stir.

OFCCP intends to use this annual compensation reporting for selecting federal contractors and subcontractors for audits. Basically, those companies who submit compensation reports reflecting potential disparities will be at higher risk of being selected for an audit than those companies who do not. Furthermore, submission of this data on an annual basis potentially limits the amount of adjustments that can be done internally upon receiving an audit letter, since contractors will then have to show OFCCP support regarding any changes made. This data collection could include very detailed information such as copies of W-2 information.

Wednesday, July 16, 2014

Heads Up Letters

The Office of Federal Contract Compliance Programs (OFCCP) has mailed another round of "courtesy letters" (aka "heads up letters") to federal contractors and subcontractors dated July 16, 2014, identifying establishments for "possible scheduling of a supply and service compliance evaluation during this scheduling cycle" - meaning sometime during the remainder of FY 2013-2014. Known formally as Corporate Scheduling Announcement Letters (CSALs), be aware that these letters are being sent directly to specific locations of multi-establishment contractors and not to the corporate headquarter offices. In addition, corporate offices are not being copied. Therefore, executives and HR staff in the field should be alerted to watch for these letters and advise corporate HR offices immediately upon receipt. Last year some of the actual scheduling audit letters started arriving within days of the release of the CSALs. The fiscal year ends September 30, 2014, and we can expect to see the majority, if not all, of those on the "heads up" list receive their official scheduling letter by that date.

Wednesday, May 14, 2014

Kairos' Norma Brito presents at the Rio Grande Valley Society of Human Resource Management

McKinney, Texas - May 14, 2014 - Kairos Services, Inc. is pleased to announce that Norma Brito, Chief Operations Officer, will present Affirmative Action Compliance at the Rio Grande Valley Society of Human Resource Management (SHRM) on May 21, 2014.

The presentation will cover some of the basic compliance requirements of Affirmative Action including requirements in the annual written Affirmative Action Program (AAP) and changes in the use of 2010 census data for calculating availability. The presentation will also review the concepts of impact ratio analysis, selection disparities, adverse impact and how to perform shortfall and back pay calculations.

In addition, the Department of Labor has released game changing regulations for individuals with disabilities and protected veterans which went into effective on March 24, 2014. The presentation will touch on how these new requirements for federal contractors and subcontractors affect job listings, the use of tag lines, the EO clause, changes to pre and post offer invitations to self-identify, annual self-assessments of effectiveness, "goals" based on self-assessment results, and changes to data collection and retention (3 years).

Kairos Services, Inc. specializes in providing affirmative action and EEO services to employers throughout the country. Specifically, our firm assists employers in complying with various affirmative action and EEO statutory and regulatory requirements. We provide the following basic services:
  • Prepare compliant, user friendly Affirmative Action Programs (AAPs) that are consistently found compliant by the OFCCP
  • Provide audit services to companies that have been selected for audit by the OFCCP
  • Design and deliver training programs to managers, supervisors and human resource professionals on affirmative action, EEO, and workforce diversity
Kairos Services, Inc. provides other related affirmative action, EEO and workforce diversity services such as customized progress reports, cohort analyses, conciliation services, Vets 100 reports, EEO-1 Reports, and compensation analyses.

Friday, April 25, 2014

KAIROS A PRESENCE AT THE UPCOMING SWARM CONFERENCE

Next week will be a busy week for the Kairos staff who will attend the SWARM (Southwest and Rocky Mountain) Regional Conference in Denver, Colorado. Chief Operations Officer Norma Brito will start out the Pre-Conference on Tuesday, April 28, with an Affirmative Action 101 workshop to help participants establish a foundation of understanding and get the most of their week's experience at the conference.

On Wednesday Kairos' Director of Compliance Services/General Counsel Lisa Kaiser will be moderating the OFCCP session which will be comprised of a panel of District Directors from Denver, New Orleans and Houston.

Thursday morning Lisa and Director of Operations Nick Paul will team up to deliver a workshop during the main conference on Common Contractor Defenses in OFCCP Systemic Discrimination Cases. As many Kairos clients are aware, Lisa delivered some of those OFCCP responses to federal contractors during her time with the agency.

Friday Lisa will moderate what many have come to recognize as one of the highlights of the SWARM Conference - the Landscape Panel. This conference closing session is comprised of some of the most nationally recognized experts in the field of affirmative action.

Kairos participated heavily in the planning for the conference. Kairos President Marshall Mendez was co-chair of the Program Committee; Nick served as chair of the Marketing Committee; AAP Specialist LaCrecia LeStourgeon served on the Sponsorship Committee; Lisa Kaiser was part of the Program Committee and Norma served on the Marketing Committee.

As she did for the prior SWARM Regional Conference held in San Antonio, Norma will serve as the Emcee for this year's conference.

Kairos clients attending the conference are invited to stop by the Kairos exhibit booth to pick up a special treat.

For more information please contact Jennifer at Jen@KairosServicesInc.com or call the Kairos office at 972-369-0015.

Wednesday, February 5, 2014

OFCCP National Office Set to Release More "Heads Up" Letters

kai·ros   1. a propitious moment for decision or action.
Dear Kairos Clients:

The Office of Federal Contract Compliance Programs (OFCCP) has mailed a barrage of “courtesy letters” (aka “heads up letters) to federal contractors and subcontractors identifying establishments for “possible scheduling of a supply and service compliance evaluation during this scheduling cycle” - meaning sometime during the remainder of FY 2013-2014.  Known formally as Corporate Scheduling Announcement Letters (CSALs), be aware that these letters are being sent directly to specific locations of multi-establishment contractors and not to the corporate headquarter offices.  In addition, corporate offices are not being copied.  Therefore, executives and HR staff in the field should be alerted to watch for these letters and advise corporate HR offices immediately upon receipt.  Last year some of the actual scheduling audit letters started arriving within days of the release of the CSALs.

For those of you who love figures and data, here are the details.  There are 2,193 establishments on the scheduling list for this fiscal year covering 17 industries (no, we don’t know which ones).  There are at least 856 “distinct companies” represented on the list.  The list includes 40 Corporate Management Compliance Evaluations.  The agency has set the maximum number of compliance evaluations to a total of no more than 35 for each corporate parent.

If your company does not receive a courtesy letter, your establishment(s) can still be selected for a compliance evaluation since these notification letters are “not all-inclusive” and these notifications are “not required by law”. Please contact Kairos Services, Inc. immediately should you receive one of these letters in order to begin preparations to ensure your company is in a position to produce and submit all required materials in a complete, accurate and timely manner upon receipt of the OFCCP scheduling letter for the compliance evaluation.


Lisa

Lisa Kaiser
Director of Compliance Services/General Counsel

    
Dallas, Texas
Phone 972.369.0015
Facsimile 972.369.1814
www.kairosservicesinc.com

Monday, January 27, 2014

OMB Approves OFCCP’s Section 503 Self-Identification Form

kai·ros   1. a propitious moment for decision or action.
On January 22, 2014, the Office of Management and Budget approved the final version of theVoluntary Self-Identification of Disability form required by the new regulations implementing Section 503 of the Rehabilitation Act (Section 503).  It should be noted that this does not affect the OFCCP’s phased in approach to compliance regarding Subpart C for Federal Contractors.

Federal contractors must use this form to invite job applicants and employees to voluntarily self-identify as an individual with a disability as required by 41 CFR 60-741.42 of the new regulations.  It provides employees and job applicants three options for self-disclosure, provides examples of disabilities, highlights that disclosure is voluntary and confidential, and includes a short paragraph on reasonable accommodation.  The form is available on OFCCP’s Web site atwww.dol.gov/ofccp/regs/compliance/sec503/SelfId_Disability_CC_305_012214_JRF_QA_508c.pdf.

Federal Contractors who wish to provide this form electronically must meet specific contextual requirements to include:
  •  Display the OMB number and expiration date;
  • Contain the text of the form without alteration;
  • Use a sans-serif font, such as Calibri or Arial; and
  • Use at least 11-pitch for font size (with the exception of the footnote and burden statement, which must be at least 10-pitch in size).
For more information see OFCCP’s FAQs for the rule.


Lisa Kaiser
Director of Compliance Services/General Counsel

    
Dallas, Texas
Phone 972.369.0015
Facsimile 972.369.1814
www.kairosservicesinc.com