OFCCP Investigations Likely to Rise


Two recent policy changes announced by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) likely will lead to a significantly greater number of and increased scope for investigations conducted by that Office into allegations of discrimination and pay disparity against Government contractors.

On December 2, 2010, OFCCP Director Patricia A. Shiu issued a directive announcing that OFCCP would be discontinuing its Active Case Management (“ACM”) process. ACM was a policy developed by OFCCP in 2003, during the Bush Administration, ostensibly to streamline OFCCP resources. As part of the ACM process, OFCCP would only conduct an abbreviated desk audit where there had been allegations of discrimination by a contractor. If no indicators of systemic discrimination, which required at least 10 potential victims, were found, the OFCCP review would be closed. As a “quality control” measure, OFCCP would conduct a full desk audit of one out of every 25 contractors who did not show indicia of systemic discrimination, and an onsite review of one out of every 50 such contractors.

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