OFCCP Releases FAQs on the Impact of the Supreme Court's Ricci Decision on Federal Contractor Obligations

OFCCP SealThe Office of Federal Contract Compliance Programs (OFCCP) has posted on its website a set of frequently asked questions (FAQs) about the U.S. Supreme Court’s decision in Ricci v. DeStefano, the reverse discrimination case involving New Haven firefighters. In Ricci, the Court determined that the City of New Haven – by tossing the results of an exam that would have disqualified African American from receiving promotions – discriminated against non-African Americans whose scores would have qualified them for advancement. The Court held that “before an employer can engage in intentional discrimination for the asserted purpose of avoiding or remedying an unintentional disparate impact, the employer must have a strong basis in evidence to believe it will be subject to disparate-impact liability if it fails to take the race-conscious, discriminatory action.” This decision has left many federal contractors – who must implement affirmative action programs – wondering whether Ricci will affect the OFCCP’s compliance reviews, and whether the decision would change the contractor’s obligations regarding the use and validation of job-related tests.

According to the FAQs, Ricci does not change a contractor’s affirmative action obligations, nor its obligation to comply with Uniform Guidelines on Employee Selection Procedures (UGESP) when using a test as part of its selection process. If such a test shows that it would have a disparate impact on a protected class, then the test must be validated for the job at issue. Additionally, the contractor is required to investigate alternative selection procedures that would have a lesser impact on the particular race, ethnic group, or gender.

The FAQs also explain that “to comply with its nondiscrimination obligations, a contractor must examine its tests and other selection procedures to identify whether there are any problem areas in terms of adverse impact on a particular race, ethnic group, or gender, and to prevent prohibited discrimination from occurring.” The OFCCP advises that contractors that are proactive in assessing their testing procedures are “more likely to avoid problems and successfully defend against any claim of disparate impact.” The OFCCP also suggests that it may be permissible to “pre-test” the use of an actual test by determine whether there is adverse impact. So long as results are not disclosed to candidates or hiring officials, the company can adjust the test or seek reasonable alternatives before using the procedure to make actual selection decisions.

As for how the OFCCP will address an allegation of discrimination, the FAQs explain that the agency will use established complaint procedures to investigate any class complaint from applicants or employees who believe that they were discriminated against when a contractor refused to use the results of a selection procedure. Additionally, “[w]here the contractor defends its action by asserting that using the selection procedure could result in liability for an unlawful adverse impact based on race, ethnicity, or gender, OFCCP will evaluate whether, as prescribed by Ricci, there is a strong basis in evidence for the contractor's claim.”

OFCCP Technical Assistance Guides for Contractors Now Available Online

The Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) has posted to its website three technical assistance documents for contractors. These guides do not create any new legal requirements, but rather are intended to serve as basic resources for contractors and subcontractors that are subject to laws enforced by the agency.

An updated version of the Technical Assistance Guide for Federal Construction Contractors (pdf) is intended only for government contractors who have construction contracts or subcontracts, including contractors who have federally assisted construction contracts. According to the OFCCP, this document is designed to help these contractors and subcontractors understand their contractual obligation to comply with the laws administered by OFCCP; understand the role of the OFCCP in enforcing federal equal employment opportunity and affirmative action laws that apply to federal contractors and subcontractors; develop written affirmative action programs where appropriate; implement the affirmative action steps that are described in the Standard Federal Equal Employment Specifications; and prepare for an OFCCP compliance evaluation.

A second guide is designed for non-construction contractors and subcontractors who are nonetheless subject to laws enforced by the OFCCP. Such entities include subcontractors who furnish supplies or services that are necessary to perform a federal contract. The Supply & Service Technical Assistance Guide (pdf) provides information on these supply and service contractors’ obligations to comply with OFCCP-enforced nondiscrimination and affirmative action laws, and discusses how to development written affirmative action plans and to prepare for a compliance evaluation.

The final compliance document now available online is a New Contractors’ Guide (pdf). According to the OFCCP, this guide is intended “to introduce new contractors to their EEO obligations, the enforcement process, and the array of resources OFCCP offers to assist contractors in meeting their obligations.”