Close-up image of a firm handshake between two professional over a conciliation agreement-OFCCP AuditAs a federal contractor, your Affirmative Action Plan (AAP) may be subject to an audit by the Office of Federal Contract Compliance Programs (OFCCP). The audit will begin thirty days after you receive the scheduling letter when you will electronically submit your AAP and the desk audit phase will begin. The OFCCP will evaluate your AAP and request additional documentation regarding any potential concerns, including any possible indicators of discrimination. If all of the OFCCP’s concerns are not addressed by the additional data submission, they will escalate the audit to an onsite review.

Once an OFCCP audit finally concludes, the possible outcomes are as follows:

  1. The contractor receives a letter indicating that no violations were found during the compliance evaluation process. If the contractor receives this letter, the company will not be subject to another audit for at least two years from the date of the closure letter.
  2. Where the OFCCP identified violations during the audit, the violations will be spelled out in a Notice of Violations which will require the contractor to enter into a Conciliation Agreement. A Conciliation Agreement is a formal agreement signed by the OFCCP and the contractor’s top official which outlines all identified violations and requires the contractor to implement specific remedies and formally report to the OFCCP for a specified period of time, typically in six month or annual review periods.

The violations specified in a Conciliation Agreement could range anywhere from administrative record keeping issues to significant financial issues in which the remedy would include back pay and make whole relief.As part of the Conciliation Agreement monitoring, OFCCP may require written reports, inspect the premises, interview witnesses, and examine and copy documents, as may be relevant to the matter under investigation and pertinent to your company’s compliance.