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Are You Prepared for Your OFCCP Audit?

by | Jul 16, 2015 | applicant management software, applicant tracking software, audit, Compliance, DOL, OFCCP

Are you ready for an audit? If your organization does business with the Federal Government and if you’re required to comply with any of the below regulations or acts, you are one of over 200,000 businesses subject to an audit by the Office of Federal Contract Compliance Programs (OFCCP).

  • Executive Order 11246, as amended
  • Section 503 of the Rehabilitation Act of 1973, as amended
  • Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended
  • OFCCP’s regulations at 41 CFR Part 60
  • Applicable case law

Whether the audit is a Desk Audit or an On-site Review, there are four possible investigative procedures that will be included.

4 Types of OFCCP Reviews

1. Compliance Review

This is the most comprehensive review and will evaluate employment practices (including a review of some or all of your written and actual Affirmative Action Program (AAP)), supporting documents and the results of your affirmative action efforts. Depending on the circumstances or results of the initial desk audit, like determining if you comply with 41 CFR Chapter 60, the OFCCP may proceed with further data analysis or an onsite review.

2. Offsite Review of Records

Based on the desk audit procedures outlined by the US Department of Labor, this type of audit is a review of some or all of your written Affirmative Action Program (AAP) policies and actions.

 3. Compliance Check

The focus of this review,  which may be onsite or offsite, is to determine if you have maintained records in compliance with 41 CFR 60-1.12, 41 CFR 60-250.80, 41 CFR 60-300.80, and 41 CFR 60-741.80

4. A Focused Review

This is typically an onsite review that is focused on one or more aspects of your organization or your hiring practices.

What should you expect from an audit and how can you best prepare for one? Having appropriate documentation accessible will make the process much easier to coordinate.

How to Prepare for Your OFCCP Audit

  • Review the Federal Contract Compliance Manual (FCCM) to fully understand what OFCCP Compliance Officers look for when conducting an audit. This document provides step by step guidance through every aspect of an audit.
  • Confirm that your manual processes or applicant tracking system (ATS) helps you meet the requirements of an internal audit. Things to consider:
    • Are procedures to request reasonable accommodation for the application process prominently displayed on your careers page, including the name and contact information of the person to whom a request should be made?
    • Are applicants easily directed to the equal employment opportunity poster?
    • Can you produce specific reports and data that meet reporting and analyses requirements, e.g., race (minorities vs. non-minorities), gender, veteran’s status, disability status, EEO job category, job status, minimum qualifications, etc.
    • Can you adequately show that you are maintaining “adequate data” including what steps you follow as your proceed through your applicant selection process and applicant flow logs?
    • If you are subject to the Internet Applicant Final Rule, can you show that you are obtaining applicant data and information regarding the basic criteria used in determining applicants for the job?
    • Do you use a compliant form and confidential process to offer applicants the ability to self-identify as an individual with a disability under Section 503 or a disabled veteran under Section 4212?
    • Can you quickly produce postings, applicant job applications, job descriptions or prescreening questions, if requested?
    • Do you maintain well organized records of your recruitment sources and notes?
    • If you’re in the construction industry, can you meet the additional recordkeeping requirements?

Due to the efficiencies that an applicant tracking system (ATS) can offer, employers are steering away from manual processes. ATS’s provide the infrastructure needed to demonstrate compliance, consistent recruitment processes and produce the required data elements. With a modern ATS designed for Federal Contractors, like TAM, you’ll be well prepared to meet many of the audit requirements with minimal effort.  Specific advantages of using the right ATS include streamlining your confidential data collection process and using updated processes and forms for OFCCP compliance. Regardless of which type of OFCCP audit you are faced with, what will you say when the OFCCP auditor asks, “what is the name of your Applicant Tracking System (ATS)?”

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