As we previously reported, President Trump, as part of his Fiscal Year 2018 Budget request, proposed a merger of the Office of Federal Contractor Compliance Programs (“OFCCP”) and the Equal Employment Opportunity Commission (“EEOC”) to “promote greater efficiency and effectiveness.”  In an August 24, 2017 letter, Acting Director of the OFCCP, Thomas Dowd, signaled a delay in the proposed merger.

In his letter to The Institute for Workplace Equality – a group opposed to the merger – Acting Director Dowd informed the group that its concerns were being considered by the OFCCP and the Trump Administration. But he also shared “that the consolidation proposal includes several challenging transition issues” which “could delay” the merger.

He explained that such a merger would require congressional amendments to the Vietnam Era Veterans’ Readjustment Assistance Act (“VEVRAA”) and Section 503 of the Rehabilitation Act, laws which govern government contractor obligations relating to individuals with disabilities and veterans. Even with such amendments, Acting Director Dowd noted there would also need to be rulemaking to implement the statutory changes.  In addition, any merger would need to address “different enforcement structures and approaches used by the two agencies.”  Acting Director Dowd noted as one example that the EEOC’s judicially-focused enforcement structure and the OFCCP’s administratively-focused enforcement structure would need to be “bridg[ed].”

Based on these challenges, Acting Director Dowd shared that all of these difficulties “could delay the expected [Fiscal Year] 2019 start for the proposed consolidation, which would result in a concomitant delay in the realization of intended benefits.”

While Acting Director Dowd noted that the merger may be delayed, he emphasized the ability of the two agencies to increase efficiency in the interim through, for example, the existing Memorandum of Understanding between the two agencies. Thus, we may see internal modifications in the near term by the two agencies to “identify operational cost savings by eliminating existing redundancies.”

We will continue to monitor developments on this topic.

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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.