On August 10, 2018, the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) issued a new directive, 2018-04, announcing a plan to implement focused reviews of contractors’ compliance with Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA). This new directive comes a week after OFCCP’s Acting Director Craig Leen discussed such a plan at the Industry Liaison Group National Conference in Anaheim, California.

While the specifics of OFCCP’s focused review plan are still being worked out, the directive indicates that OFCCP would come onsite and conduct a comprehensive review of a contractor’s compliance with the specific area of the focused review. For example, if a contractor is selected for a Section 503 focused review, the OFCCP would likely interview managers responsible for Section 503 compliance as well as employees affected by those policies. OFCCP would also seek to evaluate hiring data, and the contractor’s handling of accommodation requests, to ensure that individuals with disabilities are not being discriminated against in employment.

While focused reviews are not new, this plan signals OFCCP’s continued commitment to ensure that those entities doing business with the federal government are meeting their affirmative action and equal employment obligations. As soon as OFCCP has developed its protocol for these focused reviews and appropriate FAQs we will provide additional information.      

In the meantime, we recommend that contractors familiarize themselves with OFCCP’s expectations relating to affirmative action for individuals with disabilities and protected veterans, particularly the requirements relating to outreach and the documentation of affirmative action efforts.  Since OFCCP audits focus on the employer’s past efforts, improvements may be required now in order to be ready for a focused review in 2019 or beyond.