OFCCP New Hiring Rules for Government Contractors

What you need to know

August 28, 2013 – The U.S. Department of Labor announces final rules to improve employment of veterans, people with disabilities

  1. OFCCP Section 503 Final Rule to Improve Job Opportunities for Individuals with Disabilities 
  2. OFCCP Final Rule to Improve Job Opportunities for Protected Veterans

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Learn more about the new rules:

Section 503 Final Rule to Improve Job Opportunities for Individuals with Disabilities

This rule specifies that federal contractors and subcontractors must take affirmative action to recruit, hire, promote, and retain employees with disabilities:

  • Utilization goal: The Final Rule establishes a nationwide 7% utilization goal for qualified Individuals With Disabilities (IWD’s). If they have over 100 employees, contractors will apply the goal to each of their job groups. If they have fewer than 100 employees, contractors will apply the goal to their entire workforce. Contractors will be required to conduct an annual utilization analysis and assessment of problem areas, and establish specific action-oriented programs to address any identified problems.
  • Data collection: The Final Rule requires that contractors annually document and update several quantitative comparisons for the number of IWDs who apply for jobs and the number of IWDs they hire. This data will be critical in assisting contractors in measuring the effectiveness of their outreach and recruitment efforts. The data must be maintained for three years to be used to spot and analyze trends.
  • Invitation to Self-Identify: The Final Rule requires that contractors invite applicants to self-identify as Individuals With Disabilities at both the pre-offer and post-offer phases of the application process, using language prescribed by OFCCP. The Final Rule also requires that contractors invite their employees to self-identify as IWDs every five years, again using the prescribed language. This language will be posted on the OFCCP website.
  • Incorporation of the EO Clause: The Final Rule requires that specific language be used when incorporating the equal opportunity clause into a subcontract by reference. The mandated language, though brief, will alert subcontractors to their responsibilities as Federal contractors.
  • Records Access: The Final Rule clarifies that contractors must allow OFCCP to review documents related to a compliance check or focused review. This review may be done either on-site or off-site, at OFCCP’s option. Additionally the Final Rule requires contractors, upon request, to inform OFCCP of all formats in which it maintains its records and provide them to OFCCP in whichever of those formats OFCCP requests.
  • The Final Rule implements changes necessitated by the passage of the ADA Amendments Act (ADAAA) of 2008 by revising the definition of “disability” and certain nondiscrimination provisions of the implementing regulations.

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