Impact Of Ofccp Compliance On Your Company

The Office of Federal Contract Compliance Programs (OFCCP) is a wing of the U.S

. Department of Labor and was created with a purpose to ensure that employers that conduct business with the Federal Government are in compliance with the rules and regulations that require non-discrimination. With an aim to make equal employment opportunities available to all Americans on a fair basis, this department was formed by the Federal Government.

Industry Reaction

Since the introduction of OFCCP regulations, employers across industries have come out with mixed reactions. With the new Internet applicant rule, employers see major implications for federal contractors and the third party search firms of whose services are used. The internet applicant ruling with was introduced in February 2006, highlights the advancement of the internet age and its involvement in the recruitment process.

Impact of OFCCP Compliance Norms on your Company

OFCCP compliance norms expect employers to abide by rules pertaining to specific electronic data techniques; defines standards in basic qualifications and also specifies requirements pertaining to record keeping. All of this, largely impacts the ways in which your company conduct their hiring processes.

1.It is your companys responsibility to maintain all the necessary records of your hiring process for review from the OFCCP. If your company fails to provide the required records, the office will be forced to demand and reconstructions of your hiring process as well as reconstruct all the related information.

2. The requirements of record keeping are applicable to all activities conducted by all parties involved. This also includes recruitment agencies and hiring managers your employ within your company or externally.

3.Companies must remember that Systemic Discrimination is legally defined to be present at any stage of the hiring process and includes every applicant and not just the ones that were short-listed for the final interview. For example, it involves decisions such as selected fewer women to the next round of interviews, which were deemed to be an adverse impact.

The Investigation Process of an Adverse Impact

As an employer, it is important that you go through the Employee Selection Procedures (UGESP) which elaborately defines the method employed for investigation of an adverse impact. While the UGESP has been around since the late 70s, the laws have been effectively been enforced only since the creation of the OFCCP.

If the hiring process or information gathered from your company exhibits what is defined as an adverse impact in the total selection process, the processes followed by your company are likely to be investigated by the concerned bodies.

The electronic support in recruitment processes has made it possible for companies, regulatory bodies and other parties involved maintaining much more data in a systematic format. This makes it more convenient for regulatory bodies to conduct comprehensive analysis and shed better light to incidence of systemic discrimination. While this impacts the overall recruiting landscape across industries, the higher level of governance ensures minimal discrimination and equal opportunities among every American.

by: Job Exchange

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