OMB Approves OFCCP’s Burdensome New Scheduling Letter

August 28, 2023

What's New

The White House Office of Management and Budget (OMB) has approved major changes to the Scheduling Letter that the Office of Federal Contract Compliance Programs uses to schedule federal contractors for routine compliance audits.

Federal contractors will now be required to submit two snapshots of employee-level compensation data—one as of the date of the workforce analysis and another as of the date of the prior year’s workforce analysis. OFCCP will also now require contractors to provide a list of their additional compensation factors and related documentation. In addition, contractors will have to document that they evaluated their compensation systems for race-, ethnic- and gender-based disparities.

What It Means

The new version of the letter, which will be valid through August 31, 2026, will substantially increase a contractor’s burden of providing data to the OFCCP at a review’s desk audit stage.

The most legally questionable provision of the new letter is a requirement that contractors operating in campus-like settings submit all the affirmative action plans for the campus, not just the facility selected for review. Contractors such as hospital systems and large corporate campuses would have to provide all AAPs for the entire city in question.

In the one beneficial change to OFCCP’s new scheduling letter, contractors would no longer be required to provide the compensation data of staffing agency workers.

What You Should Do

CWC members can read more here. CWC will hold a members-only web workshop September 7 at 2:00 p.m. Register on the CWC Events webpage.

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