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OFCCP on a Roll: Issues 3 More Directives Aimed at Compensation Practices, AAPs, and Contractor Recognition

Just two weeks after the Office of Federal Contract Compliance Programs (OFCCP) released two directives under Acting Director Craig Leen, the agency released three more initiatives. On August 24, 2018, OFCCP announced three directives being rolled out as “part of the Department’s efforts to maximize the effectiveness of compliance assistance outreach.” The three initiatives establish (1) “new procedures for reviewing contractor compensation practices”; (2) “a program to verify that contractors are in compliance with federal affirmative action program (AAP) requirements”; and (3) “an initiative establishing a recognition program for contractors with high-quality and high-performing compliance programs and initiatives.”

Directive 2018-05: Analysis of Contractor Compensation Practices During a Compliance Evaluation

This directive rescinds Direction 2013-03 and replace it with Directive 2018-02 to “(1) further clarify and provide additional transparency to contractors about OFCCP's approach to conducting compensation evaluations; (2) support compliance and compensation self­analyses by contractors under applicable law, and OFCCP regulations and practices; and

(3) generally improve compensation analysis consistency and efficiency during compliance evaluations.”

Directive 2018-07: Affirmative Action Program Verification Initiative

This directives comes out of an OFCCP concerns that federal contractors are not fulfilling their duty to develop AAPs within 120 days of the commencement of the contract and to maintain and update them on an annual basis. This directive establishes “a program for verification of compliance by all contractors with AAP obligations,” permitting OFCCP review of certifications of compliance of annual updates, potential compliance checks, and annual submission of AAPs to OFCCP for review.

Directive 2018-06: Contractor Recognition Program

In establishing this directive, OFCCP’s stated purpose was “[t]o recognize contractors with high-quality and high-performing compliance programs and initiatives” and “[t]o highlight specific contractor programs and initiatives that are innovative, have achieved demonstrable results, and that could be taught or incorporated into contractor peer mentoring programs.” According to OFCCP, recognition programs can support proactive compliance and encourage contractors’ best or model initiatives and practices.


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About this Author

Leigh Nason, Federal Contractors, OFCCP, Ogletree Deakins, Shareholder, Attorney

Leigh Nason is a shareholder in the Columbia, South Carolina office of Ogletree, Deakins, Nash, Smoak and Stewart, P.C., and chairs the firm’s Affirmative Action/OFCCP Compliance Practice Group.  She currently devotes the majority of her practice to representing federal contractors and subcontractors in compliance evaluations and administrative enforcement actions triggered by the United States Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP).

Hera S Arsen PhD
Managing Editor of Firm Publications

Hera S. Arsen, J.D., Ph.D., is Managing Editor of the firm's publications, overseeing the firm's print and online legal publications and content. Hera, who joined Ogletree Deakins in 2003, is directly responsible for writing and editing the firm's national legal content, including coverage of federal agencies and the Supreme Court of the United States. She also oversees the Ogletree Deakins blog, which covers the latest legal news from over 20 practice-areas and jurisdictions. As leader of the firm's blog, Hera writes blog posts on a variety of legal issues, edits attorney-authored blog posts, and strategizes on the development of timely content. Her articles have been featured in a number of publications and media outlets.