OFCCP, or the Office of Federal Contract Compliance Programs, is an integral component of the United States Labor Department. It is in charge of guaranteeing that employers or companies conducting business transactions with the U.S. government follow the rules and regulations regarding nondiscrimination. OFCCP ensures that employers are not discriminated against on the basis of color, religion, race, national origin, sex, sexuality, gender identity, disability, or position as a sheltered veteran.
OFCCP audits are conducted to determine if a contractor or subcontractor is compliant with the rules of OFCCP. The audit involves all facets of the hiring process, including procuring, hiring, promotions, transfers, benefits, and termination.
Steps to prepare for an OFCCP audit
An OFCCP audit can bring unnecessary panic to companies. But by following a few tips, the audit can be made a peaceful affair.
Get the necessary paperwork ready
The first step while preparing for an OFCCP audit is organizing all your documents, including job postings, recruitment details, resumes, benefits, and all other employee details. Nowadays, limited onsite audits are conducted, and more importance is given to desk audits. A 30-day time limit is given by the OFCCP to the companies to submit their AAP and other aiding documents.
The report submitted for auditing includes documents like:
- examples of accommodations arranged for disabled people
- examples of employment listings with agencies like employment services
- AAP results for the preceding year
The need for the onsite evaluation will be decided after the desk audit is conducted.
Look for issues in the record-keeping
A lot of companies may find some issues with their record-keeping that can lead to onsite audits. The OFCCP auditor looks for several issues in the record-keeping, like:
- Compensation disparities that cannot be explained
- Biased decision-making procedures in all stages of employment, like hiring, promotions, and terminations
- Inadequate records to justify interview practices and applicant flow
The audit can be made smoother if you keep a proper, accurate, and complete record of all the data needed by the OFCCP.
Solidify recruiting practices and the AAP
AAP, or Affirmative Action Programs, are a necessary compliance condition for the OFCCP. They include procedures, policies, and practices that contractors and subcontractors implement in their workplaces to guarantee equal opportunities. The OFCCP auditor scrutinizes your employment policies to ensure that you are not violating any rules and regulations related to discrimination put forth by the OFCCP. If you make employment notices that in any way are targeted to exclude certain demographics of the population, your company will fail the OFCCP audit.
OFCCP makes regular changes in its rules and regulations to increase the standards and efficiency of its operations. The contractors and subcontractors should regularly inform themselves of these changes so that they can make necessary changes in their employment policies.
OFCCP audits can be stressful and intimidating for many. But taking enough time to prepare, organize, and implement an appropriate plan can take some burden off the contractors. It is also a wonderful opportunity to assess the practices and policies of the company and make improvements wherever needed.
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