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OFCCP Regulations – What Contractors Need to Know in 2022

OFCCP Regulations

OFCCP, or the Office of Federal Contract Compliance Programs, is a part of the U.S. Department of Labor. It is responsible for guaranteeing that employers involved in business transactions with the federal government adhere to the laws and regulations requiring nondiscrimination.

The OFCCP is responsible for promoting diversity. They ensure that the employees and job applicants are not discriminated against on the basis of race, religion, color, nationality, sex, sexuality, gender, gender fluidity, disability, or veteran status. Businesses should treat all employees and job applicants equally when making decisions on important matters like hiring, compensation, benefits, promotions, demotions, and lay-offs.

How OFCCP carries out its operations

The OFCCP uses several methods to make sure that businesses follow its rules and regulations.

  1. Employer compliance support: Using this method, employers are provided support to understand the various rules and regulations of the OFCCP. This is done with the help of online videos, documents, webinars, and other technical guides. All workers and employees can contact the OFCCP helpline to ask questions concerning labor laws.
  2. Compliance monitoring: In this, the OFCCP will check whether the chosen companies are complying with their rules by evaluating their employee policies. The companies are selected by focusing on a specific sector, industry, or area.
  3. Complaint investigation: Job applicants and employees can file a complaint with the OFCCP if their employer discriminates against them on any ground. The OFCCP will investigate such complaints, negotiate settlements if violations are found, and take other necessary actions.

Other measures that are taken by the OFCCP include the creation of an internal audit and reporting system, retention of employment records, and filing of an EEO-1 report with the EEOC.

Which companies should follow OFCCP rules?

All contractors and subcontractors involved in business transactions with the federal government should comply with the basic rules of OFCCP. Businesses with contacts whose value exceeds a certain amount have some additional obligations:

  1. Executive Order (EO) 11246: This rule applies to businesses with contracts or subcontracts of more than $10,000, including federally assisted construction contracts. This rule prevents discrimination on the basis of religion, color, race, nationality, sex, sexuality, and gender identity. Businesses are also prohibited from taking unfavorable measures against employees who willingly discuss their remuneration.
  2. Section 503 of the Rehabilitation Act of 1973: This rule applies to businesses with contracts or subcontracts of more than $15,000 for direct construction, supplies, or services. Unlike Executive Order (EO) 11246, Section 503 does not apply to federally assisted construction contracts. This rule prohibits discrimination against qualified individuals with mental or physical disabilities.
  3. The Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA): This rule applies to businesses with contracts or subcontracts of $15,000 or more involving direct construction, supplies, or services. This rule ensures that veterans, including disabled veterans, are not discriminated against by businesses.

The OFCCP also stipulates that some contractors develop and execute affirmative action plans (AAPs). This is to ensure that minorities, women, and disabled people can improve their careers. AAPs should be renewed annually.

The OFCCP provides several helpful guides to new contractors and answers all contractor queries, making understanding OFCCP regulations easier.

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