Record keeping can be extremely confusing for federal contractors and subcontractors and the Office of Federal Contract Compliance Programs (OFCCP) has been increasingly pursuing violations. Record-keeping violations were one of the most cited violations during the 1,200 compliance evaluations that the OFCCP completed in 2021.
It is imperative to make sure your record-keeping, support documentation, Affirmative Action Plans (AAPs), hiring procedures, and salary and pay information meet regulations. To avoid and reduce severe financial penalties and contact terminations during an audit, we’ve provided some helpful tools to make sure contractors are on top of their record-keeping efforts.
What are My Record-Keeping Requirements?
Depending on your contractor status, you may have to follow the record-keeping requirements of one or more affirmative action laws: Executive Order 11246, Section 503 of the Rehabilitation Act, and/or the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).
To understand more about what records you must keep and where you may qualify are located here:
Overall, contractors are expected to keep and maintain data on both applicants and employees. These records include documentation on compensation, hiring, promotions, training, mentorships, demotions, layoffs, and terminations.
The OFCCP has offered applicant record-keeping information to help:
Contractors should also retain all job listing and posting data, conduct self-reviews of their Affirmative Action Plans (AAPs) and develop and update employee policies, procedures, and practices. By doing so, contractors can ensure that they are compliant with all levels of their record-keeping when audited.
How Long Do I Have to Maintain Records?
Record-keeping is done constantly, but the amount of time federal contractors and subcontractors are required to hold onto their records depends on the number of employees within the organization and the amount of money awarded in the contract.
For example, contractors who have more than 150 employees and a contract or subcontract of at least $150,000 are required to maintain employment and personnel records for at least two years. Employers that do not meet these criteria must keep records for a minimum of one year.
Generally, applicant and employee records must be kept for two years, and outreach and recruitment activities must be kept for three years depending on which law a contractor falls under. Please refer to the record-keeping guides to find out which law you fall under and how long you will have to keep records.
Use a Checklist to Help Keep Track
Checklists are a fantastic way to ensure contractors keep track of what they need to do for their Executive Order 11246, Section 503, and VEVRAA records. The OFCCP offers best practice recommendations to help contractors prevent, identify, and solve potential discrimination in their hiring and employment practices, including:
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Post equal employment opportunity notices and posters
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List the equal employment opportunity tagline in job postings
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Invite job seekers to self-identify at the application stage, and post offers for individuals with disabilities and veterans
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Engage with community-based organizations and agencies to attract underrepresented groups
Summary
As it becomes increasingly difficult to understand and maintain compliance with constant changes from the OFCCP, your organization becomes more prone to compliance violations. To reduce any fiscal impact or damage to the organization’s brand, revocation of existing contracts, record-keeping has become more essential than ever. Contractors must document good-faith efforts through the collection of detailed employment records which can be done internally or through a third party. Doing so will ensure you maintain compliance and reduce any risk of violation.
Disclaimer: This is not intended to offer legal advice. Secure legal counsel when ensuring government compliance.
If you’re a federal contractor or subcontractor, looking for a robust compliance solution, JobTarget’s OFCCP offerings can automate much of the job posting and listing requirements and provide integral support during an audit. Click below to contact us to learn more.
