OFCCP's FY 2011 Congressional Budgetary Justification - Results of Prior Year Compliance Activity

Date: 2/8/10
Title: OFCCP's FY 2011 Congressional Budgetary Justification - Results of Prior Year Compliance Activity

The following report summarizes the information provided by the OFCCP to justify their FY 2011 budget request.  The results of FY 2009 compliance activity and a descriptive outline of the FY 2010 goals were provided to support the agency's budget request. 

1. No increase in staff - 788 in 2010 and proposed in 2011.  This brings the OFCCP to the 2001 staffing level.  In order to do this, OFCCP will have to hire 213 employees during FY 2010.
2. FY 2010 goals
   • Focus compliance review efforts and initiate recidivism measurements.
   • Select two industries and conduct an industry-based establisment compliance evaluation study to identify a baseline measure of compliance.  Randomly sample establishments in each industry.  In FY 2013, these establishments will be re-evaluated, depending on the number and type of issues identified.  The re-evaluation results will be compared to the FY 2010 findings.  OFCCP will test whether contractors who have been previously reviewed achieve a greater compliance in the two years than other establishments that are not part of the random sample.
   • For those multi-establishment employers, OFCCP will also conduct reviews to evaluate whether OFCCP's activities in one establishment leads to increased compliance for other establishments in the same organization.  The employer will be randomly selected and reviews will occur over FY 2010 and 2011.
   • OFCCP has contracted with an outside contractor to develop and test a statistical model to target egregious violators.  The model will be implemented in FY 2011.
3. FY 2011 goals
   • Revise Section 503 of the Rehabilitation Act in response to the amendments made in the Americans with Disabilities Act in 2009.
   • Update the regulations implementing the E.O. 11246 for federal and federally assisted construction contractors.  Strengthen 41 CFR 60-4 to require covered contractors to take affirmative aciton steps that will produce a more diverse workforce in their construction workplace.
4. Updated FY 2009 results
   • OFCCP entered into financial settlements with 94 contractors for back pay totaling $9,314.978 affecting 21,839 employees.  This number appears to be significantly lower than previously reported settlements; however, OFCCP claims that this number does not include annualized salaries associated with new jobs.
   • OFCCP negotiated settlements provided 2,249 new jobs for affected workers.
   • OFCCP completed 4,000 compliance evaluations resutling in conciliation agreements for approximately 700 contractors.
   • Of the cases to be found to have discrimination, two were referred to the Office of the Solicitor for further enforcement and litigation action.
5. OFCCP Workload Summary

Activity	FY 2010 Target	FY 2011 Target
Total Compliance Evaluations Completed	5,000	5,500
Total Complaints Investigated/Resolved	87	150
Workers in Establishments Evaluated (in thousands)	3,000	3,000
Total Compliance Actions	6,114	8,650

 

The foregoing has been prepared for the general information of clients and friends of Workplace Dynamics LLC.  It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel.