• Proposed Rule Gives OFCCP Another Tool for Locating Subcontractors
  • June 6, 2007 | Author: Lucie Frost Webb
  • Law Firm: Fulbright & Jaworski L.L.P. - San Antonio Office
  • Under a new proposed rule, the OFCCP may be gaining another tool for identifying subcontractors that are subject to its jurisdiction. Executive Order 11246 (E.O. 11246) imposes affirmative action requirements on federal contractors and subcontractors. However, the Department of Labor's Office of Federal Compliance Programs (OFCCP) has struggled with how to identify employers subject to E.O. 11246, and thus subject to audits for compliance with the Executive Order. Historically, the OFCCP has depended on employers to identify themselves as federal contractors and subcontractors on their EEO-1 forms. However, some employers covered by E.O. 11246 have been overlooked for audits by the OFCCP because they did not file EEO-1s or failed to check the box identifying themselves as covered contractors. The OFCCP has tried to avoid this problem by finding other ways to identify employers as contractors. This has been easier for prime contractors. The OFCCP obtains from federal agencies the lists of the companies with which the agencies contract. But the subcontractor lists are not as easy to come by, so many federal subcontractors have passed under the audit radar.