Earlier this month, OFCCP mailed 1,000 letters to unlucky companies notifying them that they are on the agency’s “to be audited” list. Known as Corporate Scheduling Announcement Letters (“CSALs”), the letters are provided as a courtesy in the hope that the company will be better prepared for the compliance review that is soon to follow. Like last year, the notices are being mailed directly to the local establishments that will be audited and not to the company’s corporate headquarters.
WHAT YOU SHOULD DO
The first thing you should do is notify your local executive leaders and human resources personnel to be on the lookout for a letter from the U.S. Department of Labor. Although a compliance review doesn’t technically begin until OFCCP sends the official scheduling letter, receipt of a CSAL is a good indication that the scheduling letter will soon follow. OFCCP has indicated that it will start mailing scheduling letters beginning on March 19, 2018.
Once it has been determined that your establishment received a CSAL, you should begin preparing for the compliance review immediately. This point cannot be overstated. Those who have endured an OFCCP compliance review in the recent past will tell you they can be quite painful. The pain and—more importantly—the risk involved in an OFCCP compliance review can be drastically reduced by being prepared in advance. The CSAL provides this opportunity. Don’t waste it.
SHOULD YOU CONTEST OFCCP’S JURISDICTION?
Receiving the CSAL in advance also gives you more time to consider whether your establishment has been appropriately selected for audit. OFCCP’s jurisdiction extends only to federal contractors and covered subcontractors. Whether a company is a federal contractor or covered subcontractor is not always easy to determine, especially in the health care industry where these definitions remain murky.
Whether in the health care industry or not, if you don’t believe your company is a federal contractor or covered subcontractor, you will want to have your reasons and supporting arguments prepared in advance. You will also want to have carefully considered the pros and cons of contesting OFCCP’s jurisdiction as OFCCP typically won’t retreat easily. These are complicated questions and analyses that are best addressed with legal counsel experienced in OFCCP jurisdiction matters.
If you have any questions or would like additional information, please contact Jon Bumgarner at (317) 977-1474 or jbumgarner@wp.hallrender.com or your regular Hall Render attorney.
