The OFCCP enforces equal employment opportunities for the people of America. They tackle discrimination in the workplace and work hard to promote diversity on behalf of the people. If you are non-compliant, you could be in for a shock.
The Office of Federal Contract Compliance Programs protects millions of Americans from unequal employment opportunities. Regular audits are inspections to make sure your Federal contractor or subcontractor business is in full compliance with labour laws in your area. If you want to avoid fines and harsher punishments, you must always ensure your compliance.
What to Expect from an OFCCP Audit?
Firstly, there are differing types of OFCCP audit or investigation. Typically, they will perform a compliance review at random. They may choose to spot-check your federally contracted business for compliance checks, and they may perform a more in-depth, focused review. They are looking for any signs of discrimination in your workforce, including age, weight, colour, gender, religion, or other form.
Secondly, not everyone will get visits from the OFCCP. They deal only with federal contractors and subcontractors. The inspections happen to those companies’ entering deals of larger than $50,000. Nor do they inspect every contractor. Whether you are chosen or not depends on random luck. For obvious reasons, a government must retain all aspects of its own regulations within the people who work for it. Dealing with businesses which don’t have the proper regulations may reflect badly on their reputation.
By reviewing a company for breaches of employment law, the OFCCP protects US citizens from illegally acting employers. They can use this tool to respond to complaints from employees or other stakeholders. Here is what happens when they select your business for review.
What happens during an OFCCP Audit:
- You will receive written notice that you will be the subject of an audit. The OFCCP contacts you to arrange a time that they can come to your place of business.
- The first part of the process is the desk audit. This is where they review your equal opportunity employment documentation.
- The officer may then interview members of your team at random. They will review records, including personnel and employment records.
- The OFCCP will then evaluate all the information they collect and identify any worrisome areas.
- If they find any worrisome areas, they will inform you and negotiate with you.
- Once the officials are happy that all targets are met, they will close your case. Remember that they will pay closer attention to you in future if you fail your audit.
As you can imagine, it is important to stay compliant with OFCCP regulations for the good of your business. The penalties are not worth the risk. You may wish to consider hiring a specialist service to provide tailored OFCCP Compliance Solutions to your firm. This protects you against audits, ensuring you will pass a spot check when you are selected.
What Happens if you Fail your OFCCP Audit?
There are harsh implications if your company doesn’t pass equal opportunity compliance checks. Those disobeying the law will face potential fines and financial penalties. You may lose any publicly funded contracts you had or endure damage to your reputation. If you are found to be an unfair employer, this will also turn the department’s attention to you, causing further inspections in future. In this case it is far better to prepare yourself to use an expert service than to take the chance of failing.