If you’re a small business with federal contracts, ensuring that you’re compliant with OFCCP regulations can be overwhelming. Thankfully, the OFCCP website provides multiple resources, including a guide on their website to help business like yours get the job done successfully. Here is a breakdown of the basic Equal Employment Opportunity (EEO) requirements that OFCCP requires of small businesses with federal contracts, like you.
1. Don’t discriminate
The OFCCP, under Executive Order 11246, strictly prohibits federal contractors and subcontractors from discriminating in the hiring process or the workplace on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. To adhere to this requirement, the OFCCP strongly encourages businesses with federal contracts to proactively attract qualified minority candidates during the recruitment and hiring process.
The OFCCP website stresses that even hiring practices such as refusing to hire job applicants without a high school diploma can be discriminatory. In the case of high school diplomas, its discriminatory because a smaller percentage of Hispanic job applicants have high school diplomas compared to non-Hispanic white job applicants.
2. Post the EEO poster
The OFCCP requires that federal contractors post the Equal Employment Opportunity poster in a location that employees frequent where it can be easily seen. For example, breakrooms are a common place to post the EEO poster. The poster can be found here on the OFCCP website, and you can order one by contacting your local OFCCP office.
3. Include the EEO tagline in employment advertising
In all forms of job postings or advertisements, federal contractors are required to state that all qualified applicants will receive hiring consideration regardless of race, color, religion, sex, sexual orientation, gender identity, or national origin.
4. Keep records
In order to provide proof of compliance in case of an OFCCP Complaint Investigation or Compliance Evaluation, it’s essential (and required!) that you keep company recruitment and employment records. Examples of record to keep include job descriptions, job postings, record of job offers, applications and resumes, interview notes, test results, written employee policies, and personnel files.
Most of these records need to be kept for at least 2 years, but contractors with 150 or less employees or a contract of less that $150,000 only need to keep record for one year. Keeping record like this can also help your company track the effectiveness of recruitment strategies so it’s definitely worth the time you put into it.
5. Permit OFCCP access to all records
This requirement is simple and easy to comply with. In case of an OFCCP Complaint Investigation or Compliance Evaluation, you are required to provide the OFCCP with access to your company books and records. This is required for both on and off-site investigations.
6. File an annual EEO-1 Report
The EEO-1 Report refers to the Standard Form 100 Employer Identification Report. This report requires employers to provide information on employee demographics, including race, ethnicity, and gender for each of 9 job categories. A committee of the Department of Labor and Equal Employment Opportunity Commission processes these reports annually. You can find more information about the EEO-1 report on the EEOC website.
