OFCCP Issues New CSAL List – Is Your Company On It?

Miles & Stockbridge P.C.

With just a few weeks left in FY 2020, the OFCCP has published new lists of 2,450 establishments for audit. Federal contractors and subcontractors are highly encouraged to check the lists—one for supply and service contractors (which includes universities/colleges for the first time in three years), and one for construction contractors. The lists can be found here.

The CSAL lists reflect a number of changes at OFCCP that are new. First, in a new era of remote audits, OFCCP District Offices (“DOs”) anywhere in the country could audit a contractor, not just the DO closest to the contractor’s physical location. There can be a wide variety among the different DOs, some of which are much more aggressive in pursuing audits than others.

Second, the supply and service CSAL list designates the type of audit to be conducted, with two new designations included this year. The type of audit has been assigned by the size of the establishment. The largest establishments in a DO’s geographic area will undergo Establishment Evaluations, which are the full-scope audits that contractors are used to seeing. However, the OFCCP has now ratcheted down the level of review as establishment size decreases. Establishments with the next-largest headcount will undergo Promotions Focused Reviews, a new category for this year. Smaller establishments will be subjected to Compliance Checks (also new-ish; last seen during the Bush administration), with the smallest establishments subject to Accommodation Focused Reviews and Section 503 Reviews. While the focus of the new audit reviews is apparent from the title, the OFCCP has not yet issued OBM-approved audit letters, leaving contractors in the dark as to what exactly will be required as part of the audit. For contractors that wish to see the scheduling letters for the remaining audits, they can be found here.

The CSAL list is published to provide contractors with at least a 45-day courtesy notification period before OFCCP begins sending its audit scheduling letters. Once a contractor receives a scheduling letter to begin the audit, it will have 30 days to submit its Affirmative Action Program (“AAP”). For those contractors that have not prioritized their AAPs, that 75 days is a tight time period in which to put together an AAP, so we strongly advise any contractor that appears on the CSAL lists to immediately begin to review its AAP compliance to ensure it is able to comply when the OFCCP comes knocking.

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.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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