A conciliation agreement is a formal, voluntary resolution between the OFCCP and a federal contractor or subcontractor following findings of potential non-compliance with equal employment opportunity (EEO) and affirmative action requirements after an OFCCP compliance evaluation. Financial conciliation agreements identify the violations alleged by OFCCP and require the contractor to implement specific remedies, including make‐whole relief to employees or job seekers. Technical conciliation agreements address administrative issues (e.g., record keeping, outreach, etc.), but do not involve discrimination or back pay and make‐whole relief.
Purpose & Process of a Conciliation Agreement
- Identification of Non-Compliance
- During a compliance evaluation, the OFCCP may identify areas where a federal contractor or subcontractor has failed to meet EEO and affirmative action obligations. This could include disparities in hiring, promotion, compensation practices, or deficiencies in affirmative action plans.
- Negotiation & Resolution
- If the OFCCP finds evidence of potential non-compliance, it typically initiates discussions with the contractor to negotiate a resolution. The goal is to reach a mutually agreeable conciliation agreement to address identified issues and bring the contractor into compliance.
- Terms of the Agreement
- A conciliation agreement outlines specific actions and measures that the contractor agrees to take to rectify identified deficiencies and achieve compliance with applicable regulations.
- These actions may include revising policies and practices, conducting training programs, establishing outreach and recruitment efforts, and implementing monitoring and reporting mechanisms to ensure ongoing compliance.
- Voluntary Agreement
- The conciliation agreement is voluntary, meaning that both parties—the OFCCP and the contractor — agree to its terms without admission of liability or wrongdoing.
- It serves as a proactive measure for the contractor to demonstrate commitment to equal employment opportunity and affirmative action principles.
- They are signed by the OFCCP and a contractor’s top official.
- Implementation & Monitoring
- Once the conciliation agreement is signed, the contractor is expected to promptly implement the agreed-upon actions and measures.
- The OFCCP may conduct follow-up reviews or audits to monitor compliance with the terms of the agreement and ensure that corrective actions are effectively implemented.
- Closure of Compliance Evaluation
- Upon successful implementation of the conciliation agreement, the OFCCP may close the compliance evaluation process for that particular audit.
- Continued compliance with EEO and affirmative action requirements is expected as part of the contractor’s ongoing obligations under federal contracting regulations.
Benefits & Implications
- Resolution of Issues: Conciliation agreements provide a structured framework for addressing identified non-compliance issues and promoting workplace fairness and equality.
- Avoidance of Enforcement Actions: By voluntarily entering into a conciliation agreement, contractors may mitigate potential penalties, legal liabilities, or other enforcement actions that could result from prolonged non-compliance.
- Commitment to Compliance: Signing a conciliation agreement demonstrates a contractor’s commitment to EEO principles and affirmative action goals, fostering a positive relationship with the OFCCP and stakeholders.
In summary, a conciliation agreement in an OFCCP compliance evaluation represents a collaborative effort between the federal contractor and the OFCCP to resolve issues of non-compliance with EEO and affirmative action regulations. It outlines corrective actions and commitments to achieve compliance, ensuring that federal contractors uphold workplace fairness and equal employment opportunities as required by federal contracting laws