What to Expect During OFCCP Audits
The OFCCP is a federal agency that enforces the law by conducting audits of companies that receive federal contracts. If you’ve received a scheduling letter from the OFCCP, congratulations — your company is on their radar. You’ll need to prepare for an audit in many ways in order to avoid any problems during this process or when it comes time for them to review your compliance records. Here is what you can expect.
The OFCCP will ask that you designate a corporate representative
When you receive a scheduling letter, the OFCCP will ask that you designate a corporate representative. The role of this person is to ensure that all required steps are taken in order to complete your company’s OFCCP audit. This can include:
- Identifying any potential violations;
- Ensuring all relevant laws and regulations are followed; and
- Ensuring that all applicable internal controls are properly put into place and operating effectively at all times throughout the process.
A comprehensive review
The OFCCP audit will include a comprehensive review of pay practices, recruitment, screenings and interviews, and employee selection procedures. This includes the way you pay differently based on race/ethnicity or gender.
You should expect to answer questions about your policies for compensation systems that are not discriminatory but may still result in disparate treatment for employees who belong to protected classes such as:
- Race/Ethnicity (including Hispanic origin)
- Gender identity or expression (GIE)
- Pregnancy or leave is taken due to pregnancy
- Veteran status
- Sexual orientation
- Disability
A compliance check questionnaire during the audit
You’ll receive a compliance check questionnaire during the audit. This is a list of questions that the OFCCP will ask you to answer, including:
- What is your job title? (e.g., “sales representative”)
- How many employees are there in your company? (e.g., “10”)
- Do any of those employees make more than $150k/year?
Provide additional information and supporting documentation
You’ll likely be asked to provide additional information and supporting documentation if you’re audited. You might also be asked to provide information about your company’s policies and procedures related to pay, recruitment, interviews, and selection.
The OFCCP may request that you provide the following:
- a copy of an employee handbook or other written policy manuals
- copies of all employment offers made over the past five years
- copies of job descriptions for each position at your company
- copies of any job advertisements published in newspapers or magazines during the last two years
- details about how employees were promoted within your organization during this period (including whether there were any promotions)
- details about how employees were terminated from their positions
- copies of records showing hiring decisions for new hires over the past five years (e.g., applications received)
Managers and employees interviewed.
During an onsite visit, the OFCCP will interview managers and employees at your company. The OFCCP may also interview employees at their workstations or in their work areas. Your employees may also be interviewed by phone after the on-site visit. They may be asked to provide additional information, sign an affidavit, and/or answer questions about their race, gender, national origin, and age.
Conclusion
The OFCCP is committed to helping small businesses in the minority community thrive, and it is working diligently on behalf of the federal government. But as an employer, you can do your part too by being proactive about compliance and ensuring that your company is operating in accordance with all applicable laws at all times.
