On May 23, 2017, the Trump Administration released its proposed fiscal year 2018 budget. Not surprisingly, the budget proposes significant changes for the Office of Federal Contract Compliance Programs (“OFCCP”).  In the Department of Labor’s budget proposal, the Administration has laid the groundwork to merge the OFCCP into the Equal Employment Opportunity Commission (“EEOC”) by the end of fiscal year 2018.  The merger is touted as intended to promote “greater policy coordination, management efficiency, and cost-effectiveness.”  According to the Administration, maintaining OFCCP as a separate agency “does not take full advantage of the opportunities to improve employment civil rights protection.”  It is worth noting that although the merger is the focal point of the OFCCP budget proposal, it appears to have little support outside of the Administration. Indeed, opposition to the proposal is shared by both business groups and workers’ rights advocates.

In addition, the proposed budget:

  • Allocates $88 million to the OFCCP, a decrease of nearly $17.3 million (or 16.4%) from fiscal year 2017; and
  • Cuts the OFCCP’s headcount from 571 full-time equivalents (“FTEs”) to 440 FTEs, a reduction of 131 FTEs (nearly 23%) from fiscal year 2017.

The proposed budget identifies priorities for the OFCCP in fiscal year 2018, which include the EEOC-OFCCP merger and “combating pay discrimination through intensive contractor compliance assistance aimed at educating contractors about their contractual obligations, supporting their voluntary compliance with those obligations, and conducting high quality compliance evaluations.”

The budget document also announces that the OFCCP will establish its two “Skilled Regional Centers.” These centers, to be located in San Francisco and New York, “would have highly skilled and specialized compliance officers capable of handling various large, complex compliance evaluations in specific industries, such as financial services or information technology.”  These centers appear to be part of a plan to reduce the number of field area and district offices.

Of course, the President’s proposed budget is just a proposal for Congress to consider as it prepares its appropriation bills. We will continue to monitor and report significant developments in the budget process.

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Photo of Guy Brenner Guy Brenner

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member…

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member of the Restrictive Covenants, Trade Secrets & Unfair Competition Group. He has extensive experience representing employers in both single-plaintiff and class action matters, as well as in arbitration proceedings. He also regularly assists federal government contractors with the many special employment-related compliance challenges they face.

Guy represents employers in all aspects of employment and labor litigation and counseling, with an emphasis on non-compete and trade secrets issues, medical and disability leave matters, employee/independent contractor classification issues, and the investigation and litigation of whistleblower claims. He assists employers in negotiating and drafting executive agreements and employee mobility agreements, including non-competition, non-solicit and non-disclosure agreements, and also conducts and supervises internal investigations. He also regularly advises clients on pay equity matters, including privileged pay equity analyses.

Guy advises federal government contractors and subcontractors all aspects of Office of Federal Contract Compliance Programs (OFCCP) regulations and requirements, including preparing affirmative action plans, responding to desk audits, and managing on-site audits.

Guy is a former clerk to Judge Colleen Kollar-Kotelly of the US District Court of the District of Columbia.