Severe penalties in store for EEOC & OFCCP non-compliance

Companies are at risk for stiff fines from the EEOC & OFCCP for inadequate record keeping of their hiring procedures and the archiving of pertinent information

Grand Prairie, TX, “Has my company been reclassified as a ‘Federal Subcontractor?’ is a question employers in the U.S. need to be asking,” said Milt Cotter, Senior Partner at Candidate Resources, Inc. (CRI). “Thousands of companies will be surprised to discover the U.S. Government now considers them to be a bona fide ‘Federal Subcontractor,’ and must comply with OFCCP regulations.” Onerous requirements Federal Subcontractors must adhere to stringent procedures in record keeping, and hiring practices. Fines and penalties can mean tens of thousands of dollars for non-compliance of Equal Employment Opportunity Commission (EEOC) and Office of Federal Contact Compliance Programs (OFCCP) regulations. Systems need to be certified Employers must certify they have a hiring system in place that differentiates 'qualified applicants' from 'job seekers.' This is particularly important because of the tremendous increase of companies soliciting candidates’ applications on the internet and new regulations defining an ‘applicant.’ During the application/hiring process, the employer must archive the data collected for analysis. Data must be kept for each and every step in the selection process. Record keeping must be by location. So, if an employer takes applications at four different locations, data must be kept for each location. In addition, the employer must maintain a combined aggregate for the company. The system-building and archiving requirements for these details is challenging and extremely costly. Who is a Federal Subcontractor? OFCCP regulations consider a business a Federal Subcontractor if that business (1) employs 50 or more people, (2) in one year, provides $50,000 or more of products, equipment and services to a customer who is a Federal Contractor and, (3) the Federal Contractor uses those products or services in the performance of a federal contract. Employers can get some insight as to where they stand by completing a free EEOC/OFCCP Compliance Test located at http://www.CRIW.biz/compliance. OFCCP budgets increased Federal Contractors are required to electronically report to the OFCCP those companies and vendors from whom they have, in one year, purchased, rented, or leased $50,000, or more, of services, materials, supplies or equipment. Assuming those companies and vendors meet the other two criteria, the U.S. Government classifies those suppliers as a Federal Subcontractor. The OFCCP budget has been increased substantially every year since 2006, in order to pay for additional audits and staff. Internet teleconference to answer questions Candidate Resources, Inc., is sponsoring internet teleconferences that will provide practical information and solutions for meeting the newly implemented compliance requirements. Cotter explains: “Businesses should take advantage of this opportunity to find out if they are affected and if so, what they must do to avoid a Step 2 Company Audit and a Step 3 Compliance Audit. A Step 1 Desk Audit is the initial request by the OFCCP for information. Implementing the proper systems and record keeping practices will stop the OFCCP audits at Step 1.” The internet teleconferences are scheduled for Tuesdays, at 12 Noon (EST), on January 14, 21, & 28. The teleconferences will concentrate on areas that are impacted by EEOC and OFCCP and compliance regulations. Presenter for the EEOC/OFCCP internet teleconferences is nationally known HR consultant Milt Cotter. Fee for the teleconferences is $35. Reservations can be made by contacting Andrew Schmidt, Conference Coordinator, at (972) 641-5494 X214. Employers are encouraged to evaluate their exposure to the EEOC/OFCCP Compliance regulations by completing the test at http://www.CRIW.biz/compliance.

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Candidate Resources, Inc. (CRI) specializes in the design, construction, and implementation, of custom-crafted, web-based, applicant management systems. CRI’s online systems perform all applicant screening, tracking and data management required to comply with all federal guidelines. CRI systems, meet, or exceed, all AAP, EEOC and OFCCP compliance guidelines, reporting and record archiving.