On May 8, 2012, the Administrative Review Board for the Department of Labor (“ARB”) reversed a very favorable ruling for contractors, holding that the Office of Federal Contract Compliance Programs (“OFCCP”) could request data from contractors during desk audits concerning hiring, terminations and promotions after the period covered by OFCCP’s initial Scheduling Letter.
Tag Archives: audit
OFCCP Files Suit Against Cargill Seeking to Cancel Its Federal Contracts and Debar It From Bidding on Future Solicitations
On November 29, 2011, the Office of Federal Contract Compliance Programs (“OFCCP”) filed an administrative complaint with the Office of Administrative Law Judges (“OALJ”) against Cargill Meat Solutions Corporation (“Cargill”) seeking to rescind over $550 million in contracts held by the Company. According to a press release issued by OFCCP, Cargill allegedly discriminated against 4,069 qualified female and minority applicants for entry-level production jobs at its Springdale, Arkansas establishment. OFCCP filed the complaint after it was unable to secure a Conciliation Agreement with Cargill.
The Office of Federal Contract Compliance Programs (“OFCCP”) recently announced that it entered a Conciliation Agreement with Amarillo-based Caviness Beef Packers, Ltd. (“Caviness”) after a compliance evaluation revealed hiring discrimination at two of its meat processing facilities.
OFCCP determined during a compliance review of Caviness that the contractor had statistically significant disparities in the hiring rates, favoring men over women and Hispanics over non-Hispanics. Caviness agreed to enter a Conciliation Agreement with OFCCP requiring it to pay $600,000 to 746 identified class members as back pay and interest. In addition, Caviness agreed to extend offers to 81 women and non-Hispanics as positions become available and to revise its selection procedures for production producers to avoid any future violations.
On October 27, 2011, United Space Alliance, LLC (“USA”), the government’s primary contractor for manned space missions, argued to Judge Royce C. Lamberth, the Chief Judge for the Federal District Court for the District of Columbia, that the Office of Federal Contract Compliance Programs’ (“OFCCP’s”) request for compensation data for periods beyond its initial scheduling letter violated the Administrative Procedures Act (“APA”) and the Fourth Amendment. Continue reading
Administrative Judge Finds Contractor Could Not Argue OFCCP Lacked Jurisdiction Over Data It Voluntarily Delivered to OFCCP
On September 19, 2011, Administrative Law Judge (“ALJ”) Stephen Purcell held in OFCCP v. Nash Finch Co., ALJ Case No. 2011-OFC-00004, that OFCCP could undertake enforcement actions based on data the contractor voluntarily delivered to OFCCP that was initially outside of OFCCP’s jurisdiction Continue reading
OFCCP has instituted a questionnaire that contractors are required to complete successfully during desk audits before the contractor can receive a closure letter. As we reported earlier this year, OFCCP has instituted Active Case Enforcement procedures whereby it conducts a full desk audit in every compliance evaluation and has lowered the threshold for violations that will trigger an onsite review. During these full desk audits, OFCCP is requiring contractors to answer a list of questions pertaining to various compliance issues and provide documentation to substantiate their compliance. Continue reading
Administrative Judge Ruling Expands OFCCP’s Authority To Collect Compensation Information During A Desk Audit
On February 28, 2011, Administrative Law Judge Daniel A. Sarno, Jr. greatly expanded OFCCP’s authority by holding in OFCCP v. United Space Alliance, LLC, 2011-OFC-00002 (ALJ, Feb. 28, 2011) that OFCCP can collect supplemental compensation beyond the initial 11 item scheduling letter during the desk audit. Continue reading
As we reported last month, the Office of Federal Contract Compliance Programs (“OFCCP”) has significantly revamped its enforcement strategies. As part of that effort, OFCCP recently adopted new procedures for conducting compliance evaluations and developed a new method of screening contractors’ compensation data. Continue reading
Since Director Patricia Shiu took the helm at the Office of Federal Contract Compliance Programs (“OFCCP”), the agency has made a significant shift from the enforcement strategies adopted during the Bush Administration. The past six months have been particularly active as the OFCCP has announced several major enforcement changes and initiatives, including its intent to abandon the three-phase audit process, strengthen affirmative action for disabled individuals and veterans, end I-9 reviews during on site audits, and change how it audits contractors’ compensation practices. More changes are sure to follow as OFCCP pursues its stated mission of implementing “full scale, aggressive enforcement efforts in FY 2011.”
Continue reading this entry at Cooley’s Client Alerts.