Just this past week the new rules by the Office of Federal Contracting Compliance Programs (OFCCP) went into effect in an effort to strengthen the recruitment efforts by government contractors to hire more veterans and persons with a disability. As a government contractor compliance SME, we hear a great deal about “good faith efforts” when it comes to recruiting but as a government contractor how do you exhibit the “good faith efforts” to the OFCCP if your company has been selected for an Affirmative Action Plan (AAP) audit?

When used properly, ICs (Independent Contractors) can be an excellent way to augment business services and operations. Classification continues to be hot button issue with the IRS. Misclassifying a position as an IC (also referred to as a 1099) when the position should be classified as an employee can create significant liability for a business, small or large. One of the more well known cases in recent memory involved a suit that Microsoft settled with a group of Independent Contractors for nearly $100M. At issue in the Microsoft suit was participation in various benefit programs, including employee stock options. But even small companies may find themselves targets of litigation. To help you understand exactly what is at stake, here are some areas of risk to keep in mind:

Are you a Federal Contractor who is in the process of or considering making a change to an automated Applicant Tracking System (ATS) from a manual or “home grown” solution? And do you feel that in order to be compliant you have to force candidates through a lengthy and cumbersome application process where you have a large decline in candidates who are willing to complete your application?

By Amy Stark, Practice Director of Talent Acquisition and Connie Maniscalco, Practice Leader

You may have heard that the OFCCP is getting ready to send a wave of Corporate Scheduling Announcement Letters(CSAL) to contractors that have been selected for an upcoming compliance review. And the news may be making you very nervous. I remember the first time I received a CSAL and I got so nervous at the thought of an audit. But when I realized that we were doing the right things and were prepared to respond, it really wasn't so bad.

As a Practice Leader here at Helios I have an opportunity to work with many government contractors grappling with the record-keeping requirements of maintaining their Affirmative Action Plans. Commonly referred to as an AAP, it's a program that outlines the equal employment opportunities and advancement, specifically for businesses with federal contracts or funding. As a government contractor, whether you are a prime or a subcontractor, your company must demonstrate the application of good faith efforts to increase the pool of qualified minority, female, veteran and disabled candidates when recruiting for open positions. The AAP plan is subject to scrutiny by the Office of Federal Contracting Compliance Programs (OFCCP) if your organization is selected for a compliance audit.