The Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) has released three new internal directives aimed at further improving the efficiency and transparency of the agency’s enforcement initiatives. Because of its potentially significant implications for OFCCP’s audit policy going forward, NT Lakis lawyers have prepared a guide to Directive 2019-02, “Early Resolution Procedures.”

OFCCP’s Early Resolution Procedures (ERP) – which according to the directive will be optional for federal contractors – are intended to both improve the pace and efficiency at which OFCCP is able to resolve apparent violations of its regulations, while also for the first time formalizing “enterprise-wide” remedies, a goal that has been on OFCCP’s radar for many years.  Indeed, the directive states that “OFCCP strongly encourages contractors with multiple establishments to resolve issues OFCCP finds during compliance evaluations proactively with OFCCP through the ERP.”

The ERP process is to be available in any situation in which OFCCP alleges a violation of its regulations. Contractors that agree to participate in the ERP process will be able to receive a five-year audit moratorium for the audited establishment, as well as additional establishments depending on the nature of violations covered in the ERP agreement.

A copy of OFCCP’s new Directive 2019-02, “Early Resolution Procedures” is available here.

Members of the Center for Workplace Compliance (CWC) can read more here.