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OFCCP Schedules Affirmative Action Plan Compliance Audits

March 20, 2009

The Office of Federal Contract Compliance Programs (OFCCP) has sent out a new wave of Corporate Scheduling Announcement Letters (CSAL) to the corporate office of employers with at least two (2) establishments for possible compliance review during the fiscal year (October 1st to September 30th). Because this is the second-round release of this scheduling cycle, the list of establishments included with the CSAL will include at least one newly identified establishment. This letter does not immediately initiate a compliance review. However, it provides employers with advance notice of those establishments that are scheduled for possible desk audits.

The OFCCP has made available to its Regional Offices a list of approximately 5,000 facilities eligible for compliance reviews. An AAP audit will be initiated by the employers' receipt of a scheduling letter. An employer will have 30 days from the receipt of the letter to submit its affirmative action plan to the OFCCP. The OFCCP has indicated that depending on the workload of individual OFCCP offices, not all of the establishments listed on an individual company's CSAL may actually be audited.

What Should SESCO Federal Contractors Do Now?

• The CSAL is addressed to a company's Chief Executive Officer (or other designated point of contact). Therefore, corporate human resources and/or designated AAP officers should immediately advise the Chief Executive Officer's office to be "on the look-out" for any letters from the OFCCP so the company can immediately begin to focus its resources on any impending compliance reviews.

• If you are a SESCO client and receive a CSAL, you should contact your consultant to discuss the strategic steps that should be taken now to prepare for these likely compliance reviews. If you receive an actual scheduling notice, you should also contact your consultant immediately to prepare for the compliance review submission.

• Receipt of the CSAL provides an excellent opportunity to review closely or develop your affirmative action plans for those facilities listed on the CSAL before the OFCCP initiates compliance audits. Clients should pay particular attention to adverse impact trends and pay disparities. Investigating such trends now will allow employers to address potential vulnerabilities prior to OFCCP involvement. As many of you know, the OFCCP has been investigating aggressively adverse impact and pay disparity "red flags" that may lead to substantial monetary settlements.

SESCO's Affirmative Action Plans have passed all OFCCP audits and as such, our plans are compliant and developed based on the expectations and specific auditing practices of the OFCCP.

Those clients who have not prepared a compliant AAP as required for federal contractors (including banks), should contact SESCO to ensure compliance.