On July 31st, the long-awaited proposed regulations of the Office of Federal Contract Compliance Programs (“OFCCP”) addressing federal contractors’ affirmative action and nondiscrimination obligations for both individuals with disabilities and covered veterans were submitted to the Office of Management and Budget (“OMB”) for review.
The proposed regulations, as written, would make significant changes to contractors’ compliance obligations, including requiring:
New hiring benchmarks/annual placement goals for covered veterans and individuals with disabilities;
Enhanced data collection requirements, including soliciting veteran and disability information at the pre-offer stage of the hiring process;
Increased outreach and recruiting obligations including the establishment of “linkage agreements” with multiple outreach/recruiting sources; and
New record-keeping requirements and extended document retention periods.
OMB now has 90 days to review the regulations, although it can extend the period for 30 days or beyond. OMB can approve the regulations or send them back to the OFCCP for further analysis. Once the review process is complete, the final rules will be published in the Federal Register and become law.
As soon as the regulations are published, we will provide a detailed summary and analysis of the regulations, and conduct training to address the practical implications of substantial new obligations for government contractors, including a comprehensive “compliance kit” for contractors.
Links to and abstracts for the proposed regulations submitted to OMB are attached below.
Title: Affirmative Action and Nondiscrimination Obligations of Contractors and Subcontractors Regarding Protected Veterans
Abstract: This Rulemaking would revise the regulations in 41 CFR parts 60-250 and 60-300 implementing the nondiscrimination and affirmative action provisions of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA). This Rulemaking would strengthen the affirmative action requirements for Federal contractors and subcontractors. The rule would amend the regulations to require that Federal contractors and subcontractors conduct more substantive analyses of recruitment and placement actions taken under VEVRAA and would require the use of benchmarks to measure the effectiveness of affirmative action efforts. The rule would also make revisions to recordkeeping requirements.
Title: Affirmative Action and Nondiscrimination Obligations of Contractors and Subcontractors Regarding Individuals with Disabilities
Abstract: This rulemaking would amend 41 CFR part 60-741, the nondiscrimination and affirmative action provisions of section 503. This rulemaking would strengthen the affirmative action requirements for Federal contractors and subcontractors. The rule would amend the regulations to require that Federal contractors and subcontractors increase conduct more substantive analyses of recruitment and placement actions taken under section 503. The rule would also increase the contractor’s data collection obligations, make revisions to recordkeeping requirements, and establish a utilization goal to assist in measuring the effectiveness of the contractor’s affirmative action efforts. In addition, the rule will incorporate changes to the nondiscrimination provisions necessitated by the passage of the ADA Amendments Act of 2008.