Executive Summary: The Office of Federal Contract Compliance Programs (OFCCP) has announced that the 2016 Annual Section 4212 (VEVRAA) hiring benchmark for 2016 is 6.9 percent. The benchmark is based on data issued by the Bureau of Labor Statistics (BLS) on March 4, 2016 and is effective as of that release date.
Articles Discussing the OFCCP (Office of Federal Contract Compliance Programs)
OFCCP Releases Updated Sex Discrimination Rule
As anticipated, OFCCP has released its new Sex Discrimination Rules – replacing the outdated Sex Discrimination Guidelines that have been in place since the 1970s. The release coincides with the White House’s United State of Women Summit being held today in Washington D.C..
Companies Feeling Pressure to Confirm they Pay Employees “Equally”
Increasingly, high-profile companies in the tech industry are feeling the pressure to publicly share employee pay information and address any existing “pay gaps.” This has led to a number of recent press releases from Silicon Valley employers proclaiming “equal pay” within their organizations.
Department of Labor Regulatory Agenda Update
The Department of Labor has released its Spring 2016 regulatory agenda. While the agency has accomplished many things already this year there are still a couple of items it would like to check off its list, including the following:
OFCCP Publishes Revised FAAP Directive
The Office of Federal Contract Compliance Programs (OFCCP) has published a revised directive regarding the use of Functional Affirmative Action Plans (FAAPs). A FAAP requires specific OFCCP approval and is a departure from the typical “establishment-based” AAP structure for multi-establishment facilities, using an AAP structure that is more in line with the business functions or business units of the contractor. A functional or business unit refers to a component within an organization that operates autonomously in the ordinary course of the organization’s business. To be considered suitable for a FAAP, the functional or business unit must: 1) currently exist and operate autonomously; 2) include at least 50 employees; 3) have its own managing official; 4) have the ability to track and maintain its own personnel activity.
OFCCP Publishes Finalized Updated FAAP Directive
OFCCP has received approval from OMB for revisions to the Agency’s Functional Affirmative Action Program (FAAP) directive. The revised Directive 305 went into effect on April 28, 2016. In response to public comments received, OFCCP made modifications to its proposed revised directive, as reflected in the supporting statement filed with OMB.
Fair Pay & Safe Workplaces Proposed Regulations Sent to OMB
We’ve learned the Office of Management and Budget has received for consideration the proposed regulations and guidance implementing the Fair Pay & Safe Workplaces Executive Order. This is the next step in the regulatory review process and indicates the regulations and guidance are one step closer to finalization. To be clear, the documents need OMB approval before being final.
Additional Extension of Paid Sick Leave Comment Period
The Department of Labor has again extended the public comment period for Executive Order 13706. Public comments are now due April 25, 2016. This is the second extension of the public comment period.
Required Paid Sick Leave Will Weigh Heavily on Government Contractors under Labor Department Proposal
Government contractors may have reason to feel uneasy at what awaits them from the Administration’s latest effort to mandate worker benefits. U.S. Department of Labor’s Notice of Proposed Rulemaking provides a glimpse into how the Department of Labor intends paid sick leave (“PSL”) to affect federal contractors’ and their employees under Executive Order 13706. (See our article, U.S. Labor Department Publishes Proposed Regulations Implementing Executive Order on Government Contractor Paid Sick Leave.) Significant burdens lie ahead, if the regulations are adopted as drafted.
UPDATE: OFCCP to Live Stream Pay Transparency Webinar
As we previously shared, OFCCP is hosting a second webinar on the new Pay Transparency regulations on January 28, 2016. The webinar is at capacity, but in an effort to accommodate all those who want to attend, OFCCP announced it will be live streaming the audio portion of the webinar.
Federal Contractors and Job Seekers: A Checklist Of Career Website Requirements
OFCCP’s Pay Transparency regulations recently went into effect and with it came new information dissemination obligations for contractors with respect to job seekers. OFCCP recently held a webinar in which they discussed these obligations. In addition, the agency recently updated its website to include a section specifically addressing employer obligations surrounding posting of the Pay Transparency Non-Discrimination Provision.
The OFCCP’s Pay Secrecy Final Rule for Federal Contractors and Subcontractors is Now Effective
On January 11, 2016, the final rule issued by the Office of Federal Contract Compliance Programs (OFCCP) amending regulations1 to implement President Obama’s Executive Order 13665, the so-called “Pay Secrecy” or “Pay Transparency” order, took effect. That order, issued in April 2014, amended Executive Order 11246 to bar federal contractors and subcontractors from retaliating or discriminating against an employee or applicant for inquiring about, discussing, or disclosing his or her own compensation, or the compensation of any other employee or applicant. While the regulations apply only to federal contracts or subcontracts in excess of $10,000 that are entered into or modified on or after January 11, 2016, employers that currently are or may be federal contractors would be well served to become familiar with the regulations’ requirements and begin preparing for them now. The Pay Transparency executive order and implementing rule have been touted as part of the Administration’s efforts to ensure equal pay for equal work, an objective President Obama again cited during his recent State of the Union Address.
Pay Transparency Obligations Are Now Effective
Happy New Year! For the government contractor community 2016 seems to be picking up right where 2015 left off – with implementation of new compliance obligations.
Staying Compliant in the New Year: Federal Contractors Should Assess Policies and Procedures in Response to Sweeping Executive Orders
A series of executive orders signed or implemented this year imposes substantial new obligations on employers contracting or subcontracting with the federal government. These executive orders have established a minimum wage for employees of federal contractors, expanded protected classes, and set additional requirements for hiring veterans and individuals with disabilities. Additionally, regulations are expected next year on mandatory reporting of labor and employment law violations.
OFCCP Sends Final Sex Discrimination Regulations to OMB for Consideration
In a year in which OFCCP has proposed and released more new and updated regulations than any other in recent memory, it looks as though they are on track to add new Sex Discrimination Regulations to the list.