What can I expect from an OFCCP audit?

You will receive a notification of any potential discriminatory practices, which will be followed by the on–site review process. During the on–site review the OFCCP will conduct a more detailed analysis, and may ask for additional compensation data, personnel files, and other policies and procedures.

How do you prepare for an OFCCP audit?

Get your paperwork in order and organize all your documentation, including job advertisements and recruitment materials. Ensure your Affirmative Action Plan (AAP) is updated and ready to go. Once your company receives the Scheduling Letter and Itemized Listing from the OFCCP, you will have 30 days to submit the AAP.

What is OFCCP compensation analysis?

OFCCP has increased its focus on detecting pay discrimination in compensation systems affecting women and minorities. Efforts by the agency to prosecute contractors who they believed had discriminatory pay practices were largely unsuccessful due to flawed detection methodologies.

When the OFCCP performs an audit in which areas do they primarily focus?

These focus areas include: Detailed data for the applicant, hire, promotion, and termination activity. Detailed compensation data and investigation into identified pay disparities. Description of the process that the company uses to ascertain race and gender of applicants.

What are affirmative action plans?

An Affirmative Action Plan (AAP) is a tool, a written program in which an employer details the steps it has taken and will take to ensure the right of all persons to advance on the basis of merit and ability without regard to race, color, religion, sex, national origin, age, disability, genetic information, veteran’s …

What does OFCCP stand for?

the Office of Federal Contract Compliance Programs
At the Office of Federal Contract Compliance Programs (OFCCP), we protect workers, promote diversity and enforce the law.

What is an Ofccp audit?

The OFCCP monitors whether federal contractors are complying with their contractual affirmative action obligations. As an enforcement agency, it can check compliance through a compliance review process, otherwise known as an OFCCP audit.

How do you conduct compensation analysis?

How to conduct a market compensation analysis

Access salary and wage surveys.
Assign responsibility.
Define job categories.
Collect data.
Perform analysis.
Compare to market average.
Make pay structure decisions.
Align with results.

What happens if you fail an OFCCP audit?

Furthermore, if a company fails to keep appropriate records, OFCCP can “draw an inference of adverse impact of the selection process” (41 CFR 60-3.4). This means that a company without the documentation to defend its hiring decisions or pay practices will likely be found guilty of discrimination.