Candidate Resources, Inc. (CRI) specializes in helping companies meet EEOC and OFCCP Compliance regulations, by providing them with the information needed to ensure they meet the requirements. Our knowledgable staff can help employers determine whether they have to be compliant and the steps it takes to become compliant, while helping the client maximize the potential of their workforce. We also offer Applicant Managment Systems that track applicant flow, maintain necessary records for compliance, and allow employers to build a workforce that meets their expectations and requirements. For more information, or to discuss compliance regualtions, please contact Milt Cotter at or at (972) 641-5494 x 199
Many employers believe that since they don't have a direct contract with the federal government they are not required to have a written Affirmative Action Plan (AAP) nor do they have to be OFCCP Compliant. However, they may be surprised to learn who the federal government considers a contractor and as a result, who must be OFCCP Compliant. OFCCP Definitions: :
- Tier 1 contractor/prime contractor- An entity that employs 50 or more individuals and has a written contract in the amount of $50,000 or more with the government or a government agency.
- Tier 2 contractor/subcontractor- An entity that employs 50 or more individuals, but does not have a signed contract, instead they sell, rent or lease more than $50,000 worth of good or services to a Tier 1 contractor for the performance of their contract with the government or a government agency. Thus, a subcontractor may be selected at random for a compliance audit by the OFCCP, as a result of the reports the prime contractor provides to the federal government.
To be prepared for an audit, contractors should have systems and guidelines in place that address the following:
- Definition of an applicant
- Applicant log for each job opening
- Vets 100 or Vets 100A Reports (if applicable)
- Veteran Status Data
- Disability Status Data
- Written AAP including compensation equality
- Affirmative Action Data
- EEO Reports
- System to monitor compliance
Defining an Applicant
Employers must differentiate applicants from job seekers per the published definition of an applicant. First, an employer must have a job opening and make the job seeker aware of the opening. Then, to be considered an applicant under the OFCCP definition, a person must meet the following criteria. :
- The job seeker must express interest in the available job opening
- The contractor considers the individual for employment in a particular position.
- The job seeker becomes an applicant if the job seeker meets the minimum requirements for the job.
- The job seeker, at no point in the contractor's selection process (prior to receiving an offer of employment from the contractor) removes him/her self from further consideration, or otherwise indicates that he or she is no longer interested in the position.
To avoid having to keep records for each type of applicant, a contractor should put systems in place to differentiate an applicant from a jobseeker according to this definition. Based on the four criteria, employers subject to OFCCP compliance will need to develop or utilize systems that will allow them to solicit race and gender information - EEO data - for reporting the gender and racial makeup of the applicant pool. In addition, the OFCCP specifies record- keeping requirements for employers using the Internet or related electronic data technologies for recruiting and hiring.
OFCCP Applicant Log
The OFCCP also requires that an applicant log be maintained for each job opening and includes the following:
- Applicant Name
- Date applied
- Job applied for
- Requisition Number (if used)
- Disposition - refers to whether the candidate remained a job seeker due to lack of qualifications
- Disposition reason
- Step Rejected
If a job seeker has the minimum qualifications for the job and thus becomes a qualified applicant, then the above information must be retained for each applicant and a log must tract and record the disposition of the \ applicant for each step of the selection process until the applicant is hired, rejected, or voluntarily withdraws from consideration
NOTE: The entire step by step process for both job seekers and applicants must be documented and provided in the respective log(s).
In addition, the OFCCP requires employers to prove they have a system in place to collect and retain the usual data required by the OFCCP plus the data required for the applicant log. We, at CRI, specialize in compliance and incorporated applicant logs into our Applicant Management Systems, allowing users to easily generate the logs, as requested by the OFCCP.
Vets 100 or 100A reports
Contractors with contracts valued at $25,000 or more and entered into or modified before December 1, 2003 must file the VETS 100 report annually. Contracts of $100,000 or more entered into or modified on or after December 1, 2003 require that the Vets 100A be filed annually. Contractors with contracts meeting each threshold must file each report annually.
VEVRAA and Section 503
The following are key elements that must be met by contractors and subcontractors:
- Establish a national disability hiring goal of 7% - Contractors must establish a goal of 7% of their workforce within each job category as qualified disabled.
- Employers must now develop a veteran availability "benchmark" each year, using aggregate national data published by OFCCP each year, or a more customized availability benchmark based on state-specific data and other factors. The national benchmark is currently at 8%.
- Contractors must provide evidence of outreach efforts specific to the recruitment of veterans and individuals with disabilities.
- New disability regulations will use the broader definition of disabilities as contained within ADA Amendment Act.
- Contractors must allow applicants to self-identify as veterans and disabled prior to job offer.
- Much more stringent data collection and reporting requirements to ensure that employers are making legitimate efforts to reach the goals. "Good faith" efforts are no longer sufficient.
- Much greater efforts at reasonable accommodation including a written procedure for reasonable accommodation in personnel process such as accommodation in the application process.
- Effective date is March 24, 2014. However, contractors with Affirmative Action Plans in effect at the effective date will have until the anniversary of their Affirmative Action Plan to achieve compliance.
For more information, the OFCCP has established a FAQ:
Separately, the OFCCP has targeted for release this year new proposed regulations for construction contractors that would update the affirmative action goals for women and minorities on construction sites.
Affirmative Action Plan (AAP)
Affirmative Action Plans are designed to provide written guidelines to ensure that employers are not discriminating against protected groups (minorities, females, veterans, or individuals with disabilities) in their selection process or in compensation. While many contractors are required to have a written AAP for compliance, simply having an AAP is not enough. OFCCP auditors will review, not only the text of the AAP, but also whether the contractor is follow it by analyzing the contractor's hiring practices with regard to race, age, sex, and veteran status. Of particular importance to the OFCCP is compensation equality. The OFCCP will review employment practices to determine whether individuals in protected groups are receiving compensation that is comparable to that of other employees in the same job category.
A CRI- build Applicant Management System provides the tools needed to differentiate applicants from job seekers, according to the OFCCP definition and aids in compliance, by allowing periodic monitoring of selection practices for adverse impact.
An Applicant Management System (AMS) is a web-based system that provides employers a resource for attracting job candidates, qualifying them for job openings, and taking the candidate through the employer's application process. Additional screening and information gathering can be included in the process, so that employers can obtain all the information necessary to make a decision about the qualifications of an individual for a job opening. All information is gathered online in an automated format allowing HR professionals to review the data once it is complete. Further, the AMS retains all applicant data and provides data analysis functions to help an employer monitor its selection process for compliance, with hiring guidelines.
To ensure compliance with OFCCP regulations, a prime contractor or subcontractor, should implement an Applicant Management System, in conjunction with a written AAP. These steps ensure the contractor is complying with OFCCP requirements.
CRI is recognized for Applicant Management Systems that handle the above compliance requirements and more.