A New OFCCP Record - Over $67 Million Obtained From Government Contractors in Fiscal Year 2008

The trend continues. The Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) continues to set records for the amount it recovers from federal government contractors and subcontractors that allegedly discriminated against workers on the basis of race or gender.

In Fiscal Year 2008, the OFCCP’s enforcement efforts led contractors to pay a record $67,518,982 in back pay and other benefits to 24,508 applicants and employees. This total represents a 133% increase in OFCCP yearly recoveries since 2001. The following chart tracks the significant rise in recoveries this decade:

The OFCCP’s press release about its record year included a number of other items of note:

• 99% of the over $67 million recovered last year came from cases alleging systemic discrimination.
• The OFCCP is monitoring a larger portion of all government contractors than in the past.
• The OFCCP is involving lawyers from the Department of Labor’s Office of the Solicitor earlier in its review process and more often in conciliation meetings with contractors.
• The Agency continues to view its Active Case Management system as an effective tool for targeting systemic discrimination. Under this system, the OFCCP uses automated statistical tools to rank and prioritize establishments for further review based on the probability that discrimination would be uncovered during a full-scale review.

Overall, the increasing dollar amounts that contractors are being forced to pay provides a strong incentive for contractors to focus on their compliance efforts prior to the start of an OFCCP audit.

For assistance determining if your company is covered by OFCCP regulations, preparing affirmative action programs or defending your company during an OFCCP audit, please contact any member of McGuireWoods’ Labor & Employment or Employee Benefits teams.