May 2013

The Department of Labor announced that Goodwill Industries, best known for their donation centers and retail stores, has agreed to settle allegations of systemic discrimination stemming from Goodwill’s selection practices.  OFCCP found that Goodwill of Southern California’s hiring practices favored female applicants for entry-level positions as attendants at local donation

Last week, the General Services Administration (“GSA”) issued a Request for Information (“RFI”) soliciting comments from federal contractors on the feasibility of incorporating cybersecurity standards into federal acquisitions rules.  78 Fed. Reg. 27,966 (May 13, 2013).  Through the RFI, GSA hopes to obtain diverse stakeholder involvement prior to the implementation of any new cybersecurity framework.

Research published by the Center for Corporate Equality (CCE), a Washington, D.C. research organization, reveals that the number of OFCCP audits resulting in a conciliation agreement has risen sharply under the Obama administration.

CCE compiled information from the Labor Department’s enforcement database as well as documents obtained through Freedom of Information.  Their research revealed that, during the Bush administration, only approximately 8 percent of all OFCCP audits ended in a conciliation agreement.  By contrast, the average during the Obama administration so far is close to 21 percent.  Findings of discrimination overall did not increase significantly during this period.  Between 2004 and 2008, the second term of Bush’s administration, 1.58 percent of all compliance evaluations resulted in a finding of discrimination, compared to 2.27 percent under the Obama administration so far—a rise of just 0.7 percent. 

As reported in the Bloomberg BNA Daily Labor Report, three contractors were found by the California Labor Commissioner to have “willfully” violated state wage and apprenticeship laws.  The contractors were ordered to pay over $1.8 million in back wages, apprenticeship funds, fines and penalties.

The Labor Commissioner’s office, also known as the Division of Labor Standards Enforcement (DLSE), adjudicates wage claims, investigates discrimination and public works complaints and enforces state labor law.  In announcing the fines, Commissioner Julie A. Su remarked, “Let these enforcement actions serve as notice that wage theft—whether it be through nonpayment of overtime, failure to pay proper prevailing wage, underreporting of hours worked, bounced checks used to pay working people, and cheating on apprenticeship training funds—will not be tolerated in this state.”

In December, 2011, the Office of Contract Compliance Programs (OFCCP) caused much consternation among the federal contracting community by publishing proposed changes to the affirmative action and nondiscrimination obligations of contractors and subcontractors regarding individuals with disabilities.  Much has been written and discussed regarding the proposed data tracking requirements, utilization goals, solicitation requirements, and outreach efforts contemplated by the proposed regulations, but relatively little attention has been paid to the proposed addition of one particular sentence to 41 CFR §60-741.44(b), Review of Personnel Processes:

In addition, the contractor shall ensure that its use of information and communication technology is accessible to applicants and employees with disabilities.

If you are a federal contractor, this provision will require your websites, mobile applications, applicant systems and other means of communicating with employees and the public be accessible, to the extent feasible, to individuals with disabilities.