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6 Guidelines on OFCCP Compliance for Small Businesses


The Office of Federal Contract Compliance Programs (OFCCP) under the U.S Department of Labor issued certain guidelines with respect to hiring and employment practices. They govern fundamental issues such as affirmative action (AA) and equal employment opportunities (EEO). If you are a business or organization doing business with the Federal government and your contract amount is over $10000, you are bound to follow the OFCCP guidelines.

What are OFCCP guidelines?

The OFCCP guidelines require Federal contractors and subcontractors to ensure that job postings and requirements make jobs available to diverse groups. Some “diverse groups” include persons with disabilities, veterans, women, and other protected sections of the job market.

Under the OFCCP guidelines, some main contractor requirements are as follows:

  • Developing a written affirmative action plan.
  • Posting notices regarding non-discrimination and employees’ rights under the law.
  • Creating and developing an internal audit system.
  • Retention of employment records.
  • Filing annual EEO-1 report with the Equal Employment Opportunity Commission (EEOC).

OFCCP guidelines for Small Businesses

More often than never, small businesses that have no experience in contracting with the government, are unaware of OFCCP guidelines. However, if your company is not aligned with OFCCP guidelines, you may lose that big contract with the government.

Here are six guidelines for your small business to ensure OFCCP compliance.

#1. Mandatory job listing and reporting requirements.

When your small business becomes a Federal contractor, you have to ensure that you are actively working with the State workforce agencies, posting job requirements, and maintaining records of all applicants.

#2. Keep your data ready

As a Federal contractor, it is imperative for your organization to maintain data on job postings. The organization must be ready to submit such data for annual audits. Working with job boards focused on OFCCP compliance is a good way to ensure maintenance and submission of reports when required.

#3. Keep an AA plan ready

As a small business, it is important to ensure that your staff is well-versed with affirmative action and equal opportunity hiring practices.

#4. Be aware of the laws governing OFCCP

Numerous laws have been enacted to ensure AA and EEO hiring practices. Some of these laws are Section 503 of the Rehabilitation Act, Vietnam Era Veterans’ Readjustment Assistance Act (1974), and the like. Ensure that your organization and its staff are well versed with these laws.

#5. Strategize your job posting and reporting requirements

Your job postings and requirements must be made available to state agencies. This ensures that your job postings reach minority groups on a priority basis.

#6. Be prepared for OFCCP audits

OFCCP audit process requires you to submit data like internal records, hiring data, compensation data, and other policies and procedures. Audits may happen at any time. So, it is wise to be always prepared for OFCCP audits.

Small businesses are often short-handed and in the attempt to grow their team, OFCCP compliance takes a backseat. The guidelines in this article can help you ensure that your small business is compliant with OFCCP guidelines and is ready for government contracts.

Redwood Technology Solutions specialize in a wide range of recruitment process outsourcing services. These include manual job postingsOFCCP Compliance Job Posting, for Federal ComplianceHigh Volume Craigslist Job PostingRecruitment Media Buying, and general Business Process Outsourcing. Our team has over 16 years of experience in the staffing, talent acquisition, and recruitment industry. Get in touch today – our team is ready to help customize a solution specific to your company’s needs.

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