John C. Fox and Candee ChambersThe “OFCCP Week in Review” is a simple, fast and direct summary of relevant happenings in the OFCCP regulatory environment published every Monday. Here are this week’s developments:

October 13, 2015: Hospira Signs $400,000 Conciliation Agreement (“CA”) With OFCCP To End An Audit Alleging Failure To Hire. OFCCP alleged that Hospira denied pharmacy attendant (“PA”) positions to 11 women from among 145 female Applicants for those position at its McPherson, Kansas plant. OFCCP informally calls the number of positions which it alleges contractors should fill with protected group members the “shortfall”. The settlement averages approximately $36,000 for each of the 11 shortfall positions which OFCCP alleges Hospira should have filled with a female PA Applicant. The CA calls for Hospira to pay a pro rata (i.e. equal) share of the $400,000 settlement fund to each of the 145 female Applicants (or to however many of the 145 beneficiaries OFCCP can locate) and if the beneficiaries agree to accept the settlement monies Hospira will offer them. If OFCCP could find all 145 rejected female PA Applicants, each would receive approximately $2,758. After Hospira withholds all required federal, state and local taxes, and if OFCCP located all 145 beneficiaries, each would receive slightly more than $2,000 in disposable income.

October 13, 2015: OFCCP releases a short video entitled Disability Inclusion Starts With You. In conjunction with the DOL’s celebration of National Disability Employment Awareness Month, the OFCCP posted a short video to encourage applicants and employees with disabilities to voluntarily self-identify when asked by a prospective employer or their current employer. Employers who are federal contractors can use this video to post on their company intranet to share with applicants and employees who may be reluctant to self-identify, or who may not understand why they are being asked to self-identify.

This video briefly explains the confidentiality of the self-identification information and provides additional opportunities for interested parties to learn more about Section 503 requirements. Most importantly, the video shows a copy of the self-identification form and explains why federal contractors want individuals to self-identify: 1) to meet their affirmative action obligations and 2) to make sure they are addressing the needs of individuals with disabilities within their organizations.

October 15, 2015: OFCCP releases a new Section 503 Checklist. This new checklist provides a quick overview of Section 503 and takes contractors through each of Section 503, Subpart C’s requirements for an affirmative action program for individuals with disabilities.

The checklist’s questions are derived from the actual regulations, and the OFCCP warns contractors using the checklist that it should not be used as a substitute for reviewing regulatory requirements and other guidance provided by the OFCCP. The OFCCP also warns that using the checklist does not guarantee or equate to compliance with the regulations.

THIS COLUMN IS MEANT TO ASSIST IN A GENERAL UNDERSTANDING OF THE CURRENT LAW AND PRACTICE RELATING TO OFCCP. IT IS NOT TO BE REGARDED AS LEGAL ADVICE. COMPANIES OR INDIVIDUALS WITH PARTICULAR QUESTIONS SHOULD SEEK ADVICE OF COUNSEL.

Reminder: If you have specific OFCCP compliance questions and/or concerns or wish to offer suggestions about future topics for the OFCCP Week In Review, please contact your membership representative at 866-268-6206 (for DirectEmployers Association Members), or email me at candee@directemployers.org with your ideas.

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Candee Chambers
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