The U.S. Department of Labor, Office of Federal Contract Compliance Programs (“OFCCP”), which is responsible for the regulatory oversight of Federal Government contractors and subcontractors regarding Equal Employment Opportunity and non-discrimination, has just posted its latest Corporate Scheduling Announcement List (“CSAL”).
If you are asking what is the Corporate Scheduling Announcement List, now is the time to get smart. On March 25, 2019, OFCCP posted the CSAL (which it does at least annually) to let contractors and subcontractors know that they likely will be the subject of an upcoming compliance assessment. That assessment could be a Compliance Evaluation (which reviews adherence to one or more of the equal opportunity requirements of Executive Order 11,246), a Corporate Management Compliance Evaluation (which reviews compliance at the corporate headquarters level), Functional Affirmative Action Plan review (which reviews adherence to an Affirmative Action Plan specific to a business unit), Section 503 Focused Review (which reviews affirmative action for individuals with disabilities), or a Compliance Check (which checks whether Affirmative Action Program goals are being met).
OFCCP’s right to access the contractor’s premises and inspect records is baked into the Government contract. Specifically, paragraph (b)(9) of the Equal Opportunity FAR Clause (FAR Clause 52.222-26), which is flowed down to applicable subcontractors, states that “[t]he Contractor shall permit access to its premises, during normal business hours, by the contracting agency or the OFCCP for the purpose of conducting on-site compliance evaluations and complaint investigations.” FAR Clause 52.222-26(b)(9).
The list that OFCCP issued on March 25 includes 3,500 contractor establishments that, at some point in the near future, will likely undergo one of the aforementioned assessments. In the past, OFCCP sent letters. Now, OFCCP deems public posting of the list on its website to be sufficient notice that OFCCP is on its way. Federal contractors and subcontractors should check OFCCP’s website immediately to confirm if they have been scheduled for review this year.
If a contractor or subcontractor finds itself on the CSAL, the entity has at least 45 days before OFCCP sends its scheduling list. So, if your company is on the CSAL, now is the time to ensure that you are fully compliant with the three laws that OFCCP enforces: Executive Order 11,246 (non-discrimination); Section 503 of the Rehabilitation Act of 1973 (relating to individuals with disabilities); and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (relating to veterans). See Exec. Order No. 11,246 (Sept. 24, 1965); 29 U.S.C. § 793; 38 U.S.C. § 4212. This includes ensuring an up to date Affirmative Action Plan (for the current and past two years), reviewing accommodations for individuals with disabilities, filing an EEO-1 Report or VETS-4214 Report, etc. And do not forget to put up the “Equal Opportunity Is the Law” poster in the break room. See FAR 22.805(b). OFCCP encourages contractors and subcontractors to reach out to the local OFCCP Regional Office with any questions about the review process.
While the posting of the CSAL can be a trap for those who do not know it exists, a Federal contractor or subcontractor on the list should view the CSAL review process constructively—as an opportunity to ensure and improve compliance.
Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. The author has provided the links referenced above for information purposes only and by doing so, does not adopt or incorporate the contents. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.
[View source.]
