Online Applicant Management Center FAQ

Who must be EEOC compliant?

  • The EEOC is charged with enforcing employment laws. Virtually all private employers must comply with at least some of the EEOC guidelines. Employers with 20 or more employees are subject to all of the guidelines. Obligations as an employer include access to records and site of employment, following the Uniform Guidelines on employee selection procedures, following sex discrimination guidelines, following guidelines on discrimination because of religion or national origin, and providing annual reports to the EEOC to verify compliance.

What is required to be EEOC compliant?

  • Record Keeping.
  • Every employer, employment agency, and labor organization subject to EEOC jurisdiction shall (1) make and keep such records relevant to the determinations of whether unlawful employment practices have been or are being committed, (2) preserve such records for such periods, and (3) make such reports there-from as the Commission shall prescribe by regulation or order, after public hearing, as reasonable, necessary, or appropriate for the enforcement of this title or the regulations or orders there-under.
  • Requirement for filing of EEO-1 report.
  • On or before September 30 of each year, every employer that has 100 or more employees, shall file with the Commission or its delegate executed copies of Standard Form 100, as revised (otherwise known as "Employer Information Report EEO-1"), in conformity with the directions set forth in the form and accompanying instructions.

Who must be OFCCP Compliant?

  • Generally speaking, any business or organization that holds a single Federal contract, subcontract, or Federally assisted construction contract valued at $50,000.00 or more or has Federal contracts or subcontracts that combined total or exceed $50,000.00 in any 12-month period will be subject to requirements of the laws enforced by OFCCP. Additionally, an organization that provides goods or services amounting to $ 50,000.00 to a prime contractor that are used in the performance of a federal contract are considered federal-subcontractors and are subject to OFCCP compliance as well.

What is Compliance?

  • If an employer has a federal contract worth $ 50,000.00 or more or is selling, renting, or leasing goods or services totaling $50,000.00 per year to entities who use the employer's goods or services in the performance of federal contracts, then the employer needs to have a written Affirmative Action Plan and a system to collect and maintain the data needed for compliance with EEOC reporting and differentiating applicants from jobseekers per the OFCCP definition of an applicant. To be considered an applicant under the OFCCP definition, a person must meet all of the following conditions:
    1. The individual submits an expression of interest in employment with the employer.
    2. The contractor considers the individual for employment in a particular position.
    3. The individual's expression of interest indicates the individual possesses the basic qualifications for the position.
    4. The individual at no point in the contractor's selection process (prior to receiving an offer of employment from the contractor) removes himself or herself from further consideration or otherwise indicates that he or she is no longer interested in the position.

    To be in compliance, an employer should have a system in place that consistently differentiates a qualified applicant from a jobseeker. All reporting and defense of potential discrimination claims hinge on the ability to make this distinction. Additionally, the system must retain the data supporting the differentiation for each individual, collect and retain information regarding the sex, ethnicity, race and veteran status of each individual, and be able to provide the data by location of the employer or in aggregate as may be required in an OFCCP audit. Further, the system should allow monitoring of each step of the employer's selection process for potential adverse impact.

    Visit www.applicantmanagement.biz and select "EC Demo" to see a system that obtains and maintains employment data as required by the OFCCP. To understand how such a system can pay for itself, select "Summary – Why Choose the EC."

How does the OFCCP choose employers to audit?

  • Prior to 2006, prime contractors were the primary targets of audits. However, in 2005 prime contractors were required to report suppliers from whom they received $50,000.00 or more in goods or services utilized in the performance of a federal contract. From these reports, a second database of employers was compiled from which the OFCCP may now choose.

Have the OFCCP's enforcement activities increased?

  • Yes. As of 2006, desk audit notices are no longer sent from district offices. They are now sent from the OFCCP headquarters in Washington. In 2006, 2,000 notices are being mailed out each quarter and to date the highest percentage seem to be going to employers in the new database of suppliers who provided goods and services of $50,000 or more to prime contractors but did not have a contract themselves.

    The OFCCP also received its greatest enforcement budget increase in history to fund audits.

What are the levels of audit?

  • Level One: Desk Audit: Upon receipt of a desk audit notice, the employer is required to provide the following:
    • A written Affirmative Action Plan
    • Proof of efforts to recruit minorities and veterans
    • I9 status report
    • Certification that the employer has a system in effect to differentiate qualified applicants from job seekers and to retain that data for analysis by each step in the selection process

  • If these items are submitted and the review is favorable, the desk audit is closed out. If not, then the local OFCCP office moves to level 2.

  • Level Two: Compliance Review: OFCCP schedules an onsite compliance review at the location where the employer's records are kept. This process may include a review of selection practices and examination of the system the employer has in place to collect and retain jobseeker and applicant data for analysis by location, for the employer as a whole and for each step of the selection process. To see the type of data an OFCCP auditor will consider in a review, visit www.applicantmanagement.biz, select EC demo, and then select Administrator Login. Next, select "Click Here To Proceed" under the Login section, and then select "Compile OFCCP Reports" from the Management Functions menu. The next page shows an analysis of the selection rate of women and minorities relative to those for whites and males for a particular job and a particular step in the selection process. Drop down menus allow different jobs to be selected for review as well as different steps of the selection process. This data is critical for monitoring the selection process for adverse impact as well for defense in an OFCCP review.
  • Level Three: If the records reviewed in Level Two are not acceptable or the employer's selection or compensation practices are perceived as deficient, then the OFCCP may implement a full compliance audit. The full compliance audit generally takes several weeks and involves complete review of the employer's compensation and selection practices, including interviewing personnel and reviewing all relevant company records. Included are detailed examinations for pay differential regardless of job description of jobs females and minorities are performing relative to their white and male co-workers. If a differential exists, the employer is required to pay (without appeal or recourse) 2½ times the amount of the pay differential determined by the examiner.

What can an employer expect to spend to collect the data needed in an OFCCP audit and submit it in a format required by the OFCCP, assuming an automated system to collect and organize the data is not in place?

  • The actual amount depends upon the size of the employer and the quality of their records. For an employer with 500 to 1,000 employees, a few branch locations, and very good records, it is not unusual for the costs to prepare for an audit to reach $50,000.00.

What systems are available to employers that need to be in compliance?

  • An employer may set up their own manual or computerized system. However, particular attention should be paid to the effectiveness of the system relative to the collection and retention of the data showing the differentiation of qualified applicants from jobseekers, and to the action taken for each applicant in each step of the selection process. This data must be collected and retained for each location as well as the organization as a whole.
  • Many available resume tracking systems, job boards and HR software firms provide systems to assist employers in basic applicant screening and tracking. However, they do not operate the necessary software systems to collect and retain the data as required by the OFCCP.

Is there a commercially available system that is OFCCP compliant?

  • Candidate Resources Inc. (CRI) has developed a patent pending system that:
    • Automatically differentiates a qualified applicant from a jobseeker as required by the OFCCP's definition of an applicant.
    • Allows analysis of applicant data in each step of the selection process. This data analysis is crucial for employers subject to OFCCP compliance since it allows proactive monitoring of the selection process to identify potential adverse impact.
    • Stores all data on applicants to be readily retrieved for EEOC reporting or OFCCP compliance audits.

How do I justify purchase of a system of this nature?

  • It can reduce applicant attraction costs. By keeping an electronic file of individuals who applied for a job, the system allows an employer to contact them to reapply for another opening and to also make family and friends aware of openings the employer now has. This provides enhanced applicant flow without placing another expensive ad or job posting.
  • Improved productivity in the HR function
  • Many employers are not taking full advantage of available tax credits for new hires. The CRI system can qualify applicants for eligible tax credits for employers, which can pay for the system.
  • It provides real time monitoring of the steps of an employer's selection process which can help identify possible compliance failures before they are noticed by the OFCCP. It also provides ready access to the records and reports required by the OFCCP and/or EEOC in the event of an audit or discrimination claim.

Other vendors claim that their system collects and maintains the data needed for OFCCP compliance. Why is the CRI system unique?

  • The CRI system has a pending patent. If other vendors are providing the same features, they may be subject to patent infringement.