Hunton Employment & Labor Perspectives

Webinar: Is DEI Dead? What the Supreme Court’s Harvard/UNC Affirmative Action Decisions Mean For DEI Initiatives

The U.S. Supreme Court in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College decided that the race-based admissions programs at Harvard College and the University of North Carolina (the “Schools”) violated the Equal Protection Clause of the Fourteenth Amendment. While the Court answered the question for publicly funded schools, it is an open question whether, and how, the Court’s decision will impact affirmative action and diversity programs for private employers, as discussed in more detail below.

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.

The Office of Federal Contract Compliance Programs (“OFCCP”) has a long history of attempting to assert jurisdiction over hospitals.  A recent federal court ruling confirms that, despite some recent victories for hospital employers in this area, hospitals may indeed find themselves subject to OFCCP jurisdiction.

The U.S. District Court for the District of Columbia recently ruled in UPMC Braddock v. Harris, D.D.C. No. 09-01210 (2013), that three Pittsburgh hospitals are covered federal government “subcontractors” because they contracted with an HMO to provide medical services to Federal employees and their beneficiaries.  The court found the hospitals’ provision of medical services was “necessary” to the HMO’s contract with the Office of Personnel Management (“OPM”).

On February 28, 2012, the Equal Employment Opportunity Commission (“EEOC”) issued additional guidance to wounded veterans and to employers under the ADA Amendments Act of 2008.  The two publications are revised versions of guides that originally were posted by the EEOC in February 2008. This guidance reflects another move by federal agencies to address the employment of disabled persons.  Last December, we reported that the OFCCP issued a Notice of Proposed Rulemaking that would, among other things, establish a national utilization goal for individuals with disabilities. There is certainly more than one indication from the federal government that employers will likely continue to face heightened responsibilities concerning the employment of disabled individuals.

The Office of Federal Contract Compliance Programs (OFCCP) budget request for next year reflects its intent to increase aggressive enforcement.  The OFCCP, part of the U.S. Department of Labor, is the agency charged with enforcing the affirmative action obligations of federal contractors and subcontractors.   Approximately 25% of the American workforce is employed by federal contractors and subcontractors, whose federal contracts total more than $700 billion annually.  The OFCCP’s proposed budget for FY 2013 is now available online.

On December 8, 2011 the Office of Federal Contract Compliance Programs (the “OFCCP”) published a Notice of Proposed Rulemaking in the Federal Register that would revise the regulations implementing Section 503 of the Rehabilitation Act of 1973, including setting hiring goals for individuals with disabilities.

Federal contractors have numerous non-discrimination and affirmative action obligations under Executive Order 11246, the Vietnam Era Veterans' Readjustment Assistance Act ("VEVRAA") and the Rehabilitation Act, including the preparation of annual written affirmative action plans. These obligations are enforced by the Department of Labor's Office of Federal Contract Compliance Programs ("OFCCP"), which is currently headed by Patricia A. Shiu.  Since Shiu was appointed director in August of 2009, the OFCCP has been extremely active, increasing contractors' affirmative ...

By proposing to amend its Scheduling Letter and Itemized Listing, the Office of Federal Contract Compliance Programs (“OFCCP”) is at it again, imposing greater burdens on federal contractors.  Following its recent proposal to strengthen contractors’ affirmative action efforts for veterans, the OFCCP has now issued a proposal to modify its Scheduling Letter and Itemized Listing used in compliance reviews and compliance checks.  On May 12, 2011, the OFCCP published Notice in the Federal Registry requesting comments on its proposed changes.  The current Scheduling Letter and Itemized Listing are set to expire on September 30, 2011.  Comments on the proposed changes must be submitted by July 11, 2011.

The Office of Federal Contract Compliance Programs (“OFCCP”) has issued a proposed rule to strengthen the current regulations that require federal contractors and subcontractors to engage in affirmative action efforts for veterans. The proposed rule was published in the Federal Register on April 26, 2011. Fed. Reg. 23,358 (Apr. 26, 2011). Public comments regarding the rule are due by June 27, 2011.

The OFCCP’s proposed rule would revise the regulations that implement the Vietnam Era Veterans’ Readjustment Assistant Act (“VEVRAA”), 41 CFR Parts 60-250 and 60-300, which have generally remained unchanged since 1976. VEVRAA, its amendments and regulations prohibit contractors from discriminating against protected veterans and additionally require contractors to take affirmative action to recruit, employ, and advance the employment of protected veterans. VEVRAA also requires certain contractors to maintain a written Affirmative Action Plan.

The OFCCP is a federal agency that enforces equal employment opportunity and affirmative action laws.  Entities that fall under the jurisdiction of the OFCCP have numerous affirmative action obligations if they have contracts or subcontracts with executive branch agencies.  A Labor Department Administrative Law Judge (“ALJ”) recently issued a decision that could expand the reach of the OFCCP to include hospitals and other health care entities which provide medical services for beneficiaries of TRICARE.  See OFCCP  v. Florida Hospital of Orlando, DOL OALJ No. 2009-OFC-00002 (October 18, 2010).  Florida Hospital has appealed the ALJ’s ruling.  If the ruling stands, numerous health care providers will be subject to the OFCCP’s jurisdiction.

The ruling is especially notable considering that there has been an increase in funding of the OFCCP and an increase in hiring of OFCCP compliance officers.  With this in mind, hospitals and health care providers should review their contractual obligations to determine whether they are federal contractors or subcontractors.  Entities that are federal contractors and subcontractors must comply with numerous obligations including filing EEO-1 and Vets 100/100A reports, ensuring nondiscrimination in employment, posting certain notices, establishing affirmative action programs and conducting adverse impact analyses for hires, promotions and terminations.

The Office of Federal Contract Compliance Programs (OFCCP),  recently signaled that it may conduct more evaluations of multi-facility employers.  Its recently revised standard Corporate Scheduling Announcement Letter (CSAL) describes new and different practices that will accompany compliance audits of federal contractors.

In August 2009, the Obama administration named Patricia A. Shiu the new Director of the Office of Federal Contract Compliance Programs (OFCCP).  The OFCCP, part of the Department of Labor (DOL), enforces the non-discrimination and affirmative action obligations of federal contractors under Executive Order 11246, the Vietnam Era Veterans’ Readjustment Assistance Act, and the Rehabilitation Act.