The Office of Federal Contract Compliance Programs (OFCCP) is a division within the U.S. Department of Labor that monitors federal contractors and subcontractors for compliance with civil rights laws. If you don’t comply with their regulations, it can cost you, financially and otherwise. Read on to learn more.

Lose federal contracts

Let’s say your company has been awarded a federal contract, and you fail to meet the requirements of OFCCP. What happens?

  • If the government decides not to award the contract, it will cancel it and tell your company that it can’t work with them anymore. This could result in lost business or even lawsuits against your business if customers are angry about being shut out.
  • If there is no other reason why the contract was canceled, then it’s likely because OFCCP determined that one of your employees did something wrong or broke one of its rules (which could include discrimination). In this case, losing that particular contract would mean losing future opportunities as well—not just the ones that have been given previously but also ones yet to come down the road!

Pay back wages/damages

If you are found non-compliant, your company will be required to pay back wages and damages. The amount of back wages owed depends on the number of employees affected but will typically be between $5,000 and $15,000 per employee. In addition to paying off any lost wages, companies must also cover all costs associated with hiring an attorney (such as travel expenses) and any additional court fees that may apply.

If you fail to uphold one of these obligations under OFCCP’s regulations—and don’t have enough money on hand or credit available to make a payment plan—you could face penalties instead.

Damages as penalties

OFCCP can assess damages for failure to comply with the law. The amount of damages will be determined by how many employees have been harmed by your actions or inaction and how long they have been harmed by those actions or inaction (if applicable).

You must understand the risks of non-compliance. It is paramount to ensure your company complies with all laws and regulations, including those related to hiring practices, healthcare coverage, and more. Keep track of your records so that they are accurate and up-to-date at all times. This will help mitigate any potential lawsuits brought on by OFCCP and ensure that there is no misclassification or other violations in place when an audit happens.


In short, enforcement efforts by OFCCP are not to be taken lightly. The consequences of non-compliance can be severe, impact your company’s future prospects, and cost you millions of dollars. However, with the right team of experts and a strategy for success, you can mitigate these risks and reach a better conclusion for yourself and your business. Hiring discrimination claims is complex, but you need to be proactive and hire experts to guide you through every step of this process to get results.