by For the first time since 2014, the Office of Federal Contract Compliance Programs (OFCCP) is proposing to change its Scheduling Letter and Itemized Listing (also known as ‘the thirty day letter’). The Scheduling Letter is the notice that OFCCP issues to federal contractors and subcontractors selected for the agency’s annual compliance evaluations. The letter notifies the employer that it has thirty days to submit affirmative action plans and the listed documents and data to the OFCCP to begin the review.
The proposed Scheduling Letter increases the specificity of what the contractor must provide to demonstrate the steps being taken to increase the representation of employees in the categories of minority, female, individuals with disabilities, and military veterans. In addition to requiring the production of various written policies, it requires more details on promotions, terminations, and other personnel actions. In keeping with compensation analysis directive issued by the OFCCP earlier this year, the proposed Scheduling Letter greatly increases the kind and breadth of documentation regarding compensation analysis and identification of pay inequities.
Examples of proposed changes to the itemized list of required documentation include:
- Item 19: Documentation of policies and practices regarding all recruiting, screening, and hiring mechanisms, including the use of artificial intelligence, algorithms, automated systems, or other technology-based selection procedures.
- Item 20(c): For each job group or job title, the total number of promotions by gender and race/ethnicity, and identification of whether each promotion was competitive or non-competitive. Other required documentation are established policies and practices related to promotions, with details like the previous supervisor, current supervisor, previous compensation, current compensation, department, job group, and job title from which and to which the employee was promoted.
- Item 20(d): For each job group or job title, the total number of employee terminations, broken down by reason for termination (e.g., retirement, resignation, conduct, etc.) Data on gender and race/ethnicity information would be required for each.
- Item 21: Employee level compensation data for all employees (including but not limited to full-time, part-time, contract, per diem or day labor, and temporary employees, including those provided by staffing agencies) as of (1) the date of the organizational display or workforce analysis and (2) as of the date of the prior year’s organizational display or workforce analysis.
- Item 22: Documentation establishing that the contractor has satisfied its obligation to evaluate its compensation system to determine whether there are gender-, race-, or ethnicity-based disparities, as part of the contractor’s in-depth analyses of its total employment process required by the federal regulations.
The proposed letter and rationale for the changes and information on how to submit comments on the proposal can be found at: https://www.regulations.gov/document/OFCCP-2022-0004-0001
Interested parties have until January 20, 2023 to submit comments.
