OFCCP compliance definition begins with understanding who is a Federal contractor. A business that directly or indirectly sells products and services to the Federal government is considered a Federal contractor or sub-contractor. Organizations that receive research grants, obtain federal insurance or receive reimbursements are also considered as Federal contractors. In essence, any organization that receives Federal funds above a certain amount may be considered a Federal Contractor or sub-contractor. Businesses representing a wide variety of industries such as healthcare, financial services, technology, manufacturing, research, educational institutions are prime examples of Federal contractors.
OFCCP compliance definition also demands understanding the role of the OFCCP – the Office of Federal Contractor Compliance Program. The OFCCP enforces equal opportunity and non-discrimination regulations for Federal contractor compliance. It is a relatively small division within the US Department of Labor. However, it has big power to penalize or even disbar Federal contractor for non-compliance. The goal of the OFCCP is to ensure that employment created by the use of Federal dollars are equitably available to all Americans – irrespective of an employee’s race, color, national origin and other attributes not related to the performance of employment duties.
Fedreal contractors are required by the OFCCP to not only prevent discrimination in their recruiting and workplace practices, but also to engage in proactive affirmative action efforts. Their recruiting efforts must include initiatives to find and employ applicants from the protected or under-represented groups. The OFCCP requires federal contractors to follow mandatory ESDS job posting and diversity outreach of potential applicants. This additional layer of recruiting effort often supplements an organization’s own career site and other recruitment advertising practices.
A recruitment program that reaches and attracts applicants from protected and under-represented groups is a key component of OFCCP compliance. The protected groups commonly refer to transitioning veterans and persons with disabilities. Underrepresented groups may refer to as women, minorities such as African Americans, Hispanics, Asians or Native Americans. Special groups such as LGBTQ are also considered among the under-represented. Employers must engage in posting and distribution of its job openings to maximize its reach to applicants from the under-represented groups. Posting the job openings in state workforce system job banks (ESDS), and on job boards targeting the such groups are required. In addition, it is also required to send these job postings to local state workforce centers and diversity organizations that provide employment assistance. Find more information about OFCCP compliance solution here.