If your organization is a federal government contractor or subcontractor with annual affirmative action plan requirements, you need to be aware of some recent, important developments.
On December 2, 2021, the U.S. Department of Labor’s Office of Federal Contractor Compliance Programs (“OFCCP”) issued an announcement introducing its new online contractor “portal.” The OFCCP describes the “portal” as a platform through which covered federal government contractors and subcontractors must register and then subsequently annually “certify” whether they are meeting their requirements to develop and maintain their annual affirmative action plans (AAPs).
In its announcement, the OFCCP stated that: (1) the “portal” would be open for registration on February 1, 2022; (2) beginning on March 31, 2022, contractors and subcontractors will be able to utilize the “certification” feature in the “portal” to “certify” its AAP compliance, that is whether it has developed and maintained AAPs for each of its applicable establishments; and (3) contractors and subcontractors must complete the 2022 annual AAP “certification” in the “portal” by June 30, 2022.
This is a very significant, controversial change in approach by the OFCCP, as these new requirements will create the first OFCCP registration and certification database of AAP compliance and the first online database that tracks registered subcontractors. The development is also controversial, because determining subcontractor status is often nuanced and difficult, and registering with the OFCCP might be found to be an admission of subcontractor status. Information regarding this OFCCP announcement and the new requirements, including the OFCCP’s frequently asked questions (“FAQs”) regarding the matter, is available on the OFCCP’s website at: https://www.dol.gov/agencies/ofccp/faqs/contractorportal
We suspect that legal challenges to the OFCCP’s authority to require not only this “registration,” but also – and more importantly – any annual AAP “certification” is likely forthcoming, so stay tuned, and give thought to any action your organization may need to take before the June deadline.