Part 1: OFCCP Audit
The Office of Federal Contract Compliance Programs (OFCCP) conducts audits of federal contractors to ensure compliance with Executive Order 11246. A compliance review has several stages.
The first stage of the compliance review (audit) begins by evaluating the contractor’s Affirmative Action Plan (AAP) and supporting documentation. The OFCCP will conduct a comprehensive analysis and evaluation of each aspect of a federal contractor’s employment practices. The audit includes hiring, training, promotions, terminations, compensation, benefits, and other employment practices.
If systemic disparities exist, OFCCP will conduct an onsite visit to the contractor’s establishment to investigate potential discriminatory practices in the contractor’s data. The onsite visit will include interviews with recruiters, managers, and employees. At this stage, OFCCP is gathering information to support its statistical findings in the contractor’s data. If the contractor cannot explain away selection or compensation disparities that adversely impact one group of employees vs. another; administrative and financial penalties can be expected.
Contractors must conduct detailed analyses of their personnel activity data and pay data before submitting it to OFCCP. It is paramount that contractors identify and correct potential discriminatory practices before an OFCCP audit.