Hunton Employment & Labor Perspectives

This past week, the EEOC filed suit against 15 different employers located across 11 different states. There was one common theme in each action: an employer’s failure to complete EEO-1 Component 1 reports for both 2021 and 2022. By filing these lawsuits, the EEOC is requesting courts to order these employers to fulfill their requirement of providing their company’s workforce demographic data. These suits were filed just ahead of the deadline for employers to file their EEO-1 Component 1 report reflecting data from the 2023 calendar year, which is quickly approaching on June 4, 2024.

On August 25, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) announced an updated Scheduling Letter and Itemized Listing that places a more onerous information disclosure burden on federal contractors in responding to a Supply and Service compliance audit. In particular the updated Scheduling Letter, OMB No. 1250-0003, now requires federal contractors to produce more documentation for a variety of Items and increases both the scope and breadth of requested compensation data.

The OFCCP vowed things would change after President Trump’s election.  It is making good on that promise.  The Agency issued three new Directives in the last two weeks, following four others earlier this year.  One of these Directives was long-awaited new guidance on pay analyses, replacing Directive 307.  And, the OFCCP has a new Acting Director, Craig Leen (see our earlier post for the exciting news about the immediate-past Director, Ondray Harris, joining our firm).

The good news for contractors is that the OFCCP’s actions are almost all pro-business, aimed at making the Agency more transparent, objective, and efficient.

The Office of Federal Contract Compliance Programs (OFCCP) performs compliance audits reviewing numerous federal contractors’ affirmative action plans and practices on a yearly basis.  A number of organizations are reporting that the OFCCP will be sending out courtesy letters (known as corporate scheduling announcement letters, or “CSAL”) notifying employers that they have been selected for such an audit as early as next week.  With the changing landscape of the OFCCP’s affirmative action plan requirements and regulations, it is important that employers be on the lookout for such letters and begin preparations for the audit as soon as possible.