Avoid these 3 OFCCP violations when recruiting for your fab shop

The three most OFCCP violations revolve around recordkeeping, job listing, and hiring missteps.

In 2018, the Office of Federal Contract Compliance Programs (OFCCP) obtained more than $16 million in monetary relief — renowned computer technology company Dell alone paid nearly $3 million in back wages to remedy pay discrimination — and some data predicts the OFCCP could set new financial recovery records in 2019.

Thinking about OFCCP compliance may not sound exciting, but not thinking about it can cost your company big-time. While the price of noncompliance is high, complying with OFCCP isn’t just about avoiding fines; it is also about strengthening your company’s recruitment and HR practices, which improves the quality and diversity of candidates in your organization.

The OFCCP recently introduced incentives for businesses that voluntarily resolve compliance issues, meaning your company now stands to benefit even more from identifying and addressing potential violations as early as possible. In some cases, you may even be granted exemption from nonvoluntary OFCCP audits for the next five years.

Here’s what you need to know about the three most common OFCCP violations and how to avoid them.

1. Recordkeeping violations

Recordkeeping is the No. 1 violation found across OFCCP audits. Your documentation and records affect every aspect of your audit, and poor recordkeeping makes it more likely your company will be found noncompliant with every other item down the list, from job listings to hiring.

To avoid violations related to recordkeeping, make sure your company:

• Allows current employees and new hires the chance to self-identify their gender, race, ethnicity, and whether they are a protected veteran, have a disability, or are a member of another protected class.
• Documents all disability and religious accommodation requests by employees and applicants. Include details of the accommodation process and eventual outcomes.
• Tracks all applicants, hires, and terminations.
• Tracks promotions, transfers, and demotions.

Essentially, your company needs to keep records for all its applicants and employees to be able to show documentation for their progression through the company. Once your company gets to a certain size, or if it has multiple offices or shop locations, tracking all this data can get complicated. OFCCP auditors check that each piece of documentation complies with regulations, so it’s useful to have one system where all this information is stored. Regulations change over time, so using a centralized system makes it simple to keep your records up-to-date and compliant.

2. Job listing violations

Compliance starts from the moment you advertise an open position. To avoid violations as you post jobs, make sure your company:

• Includes the required Equal Opportunity Employer (EEO) line in all job listings. This can be automated with technology tools or otherwise included in your process for posting new jobs.
• Posts all job listings with local and state employment agencies where the position will be filled. Note the exceptions to this rule for executive positions, positions lasting three or fewer days, and positions that will be filled internally.
• Makes its application process accessible for people with disabilities. It’s a good idea to include contact information for your HR department so applicants can contact your company if they need accommodations to be able to submit their application.
• Offers reasonable accommodations to applicants, if they do indeed ask for special accommodations.

It helps to automate as many parts of this process as you can to manage compliance and ensure you don’t forget simple things that may risk a violation.

3. Hiring violations

Once a job listing has been posted, your hiring process must be compliant with the OFCCP throughout the applicant’s experience with your organization. To avoid violations as you hire employees, make sure your company:

• Informs its hiring panel of relevant affirmative action placement goals.
• Diversifies its hiring panel to mitigate potential bias in hiring decisions.
• Trains the hiring panel on legal interviewing questions and techniques. Make sure they understand state-specific legislation — for instance, it is legal in some states to ask about a candidate’s arrest record, but illegal in other states.
• Documents hiring procedures and ensures those procedures are followed.
• Can demonstrate when an applicant fell out of the hiring process.
• Keeps copies of interview notes.
• Administers tests and asks interview questions that are related to the job.

It’s also smart to track the demographics of people applying for positions at your company and those that are hired. For instance, if 40 percent of the people applying to your company are women, but only 25 percent of successful candidates are women, it’s possible there is bias in your hiring process. Who makes the hiring decisions? Are there women on your hiring panel? Are female candidates being asked certain questions that male candidates aren’t being asked?

Much of OFCCP compliance comes down to instituting the right process and procedures, documenting them, and ensuring they’re followed. If you can maintain thorough and organized recordkeeping, keep your job listings in line with OFCCP guidelines, and be diligent in tracking and managing compliance throughout your hiring process, you will already be ahead of most other companies. By addressing these aspects before being audited, you will not only make your audit process smoother, but your organization will benefit from high-quality recruitment and hiring practices that enable you to find the top talent you need.