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.”
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.”
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.
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.