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.