If you have been working under a federal government contract, you must already know about the Office of Federal Contract Compliance Programs (OFCCP). There are certain OFCCP regulations that are imposed on federal contractors to ensure non-discrimination compliance and affirmative action. And to ensure that you are adhering to these regulations, they might perform an audit. For the contractors who are undergoing the OFCCP audit for the first time, knowing what to expect can be really helpful. In this article, you will learn more about what you should expect during an OFCCP audit.
What is an OFCCP audit?
Every year, the Office of Federal Contract Compliance Programs (OFCCP) selects a few federal contractors and evaluates their compliance with their regulations. Audit preparation is compulsory. However, with the appropriate documentation, the whole process can be easier to coordinate.
There are two stages of an OFCCP audit:
1. Desk audit
The OFCCP audit begins with a simple desk audit, conducted at random. The OFCCP selects a few federal contractors whose compliance will be assessed. OFCCP will send you a letter and request documentation on your affirmative action plan. Depending on the information that you provide, there are two possible outcomes. The first one is where you will receive a letter indicating that there are no violations and the audit is closed. The second one is where you will receive a letter notifying you of potentially discriminatory practices. In the case of the latter, the audit will move on to the next stage.
2. Onsite review
This is a more detailed analysis. Depending on the practices that were flagged by the OFCCP, they will request more documentation, such as compensation policies and personnel files. If needed, they might interview your staff and hiring managers.
As a federal contractor, you have to be prepared for an audit. It’s your responsibility to ensure that you meet OFCCP regulations. This includes hiring diverse candidates and maintaining documentation. According to the OFCCP compliance regulations, you have to make sure that your job vacancy listings reach state employment agencies. All applicants, including people with disabilities, veterans, and minorities must be given equal opportunities.
OFCCP has outlined that all federal contractors have to provide proof that shows that they have been working with state career sites actively. This means that you have to post jobs there and keep records of applicants with the veteran or minority status.
All federal contractors have to prepare hiring data for reporting regulations. You have to maintain data about the jobs you have posted. All this information should be readily available for submission, in case you have to undergo the OFCCP audit. Even if you have just been audited, you must continue maintaining this data. In order to comply with OFCCP regulations, you have to collect, store, and report your online job applicant data. In fact, this is a necessary requirement for when you are in the desk audit stage.
OFCCP audit doesn’t have to be a scary, overwhelming process. However, it doesn’t have to be. By arming yourself with the right knowledge, you can make sure that you are able to comply with the OFCCP requirements. If you want to be sure that you pass the audit, you can hire a professional consultant.
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