Professional Service Agreement

Trump Administration OFCCP Continues To Obtain Large Recoveries From Contractors in FY18

December 03, 2018

Data released by the U.S. Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) shows the agency obtained $16.4 million in monetary relief for roughly 12,000 class members in FY 2018. While that is a drop from the record year recovery of $23.9 million in FY 2017, it is much higher than $10.5 million obtained in FY 2016 and $6 million obtained in FY 2015. Reports of OFCCP’s demise under the Trump Administration have been greatly exaggerated. Indeed, the predictions of many that contractors would face little OFCCP scrutiny or enforcement under the Trump Administration has not come to pass. OFCCP continues to engage in compliance evaluations and it has managed to obtain significant recoveries despite initiating onlyone enforcement proceedingduring the Trump Administration. The FY 2018 financial recovery consists of the OFCCP’s settlement of 58 discrimination, 18 pay discrimination and 18 systemic pay discrimination cases. These settlements covered more than 12,000 employees and job applicants. By way of comparison, these numbers were lower in the previous year, with the agency reportedly settling 47 discrimination, 19 pay discrimination and 16 systemic pay discrimination cases covering 11,653 employees. We recommend all employers that are or might think they are federal contractors contact SESCO to ensure compliance with OFCCP regulations.