OFCCP Early Resolution Procedures Produce Results

OFCCP implemented Early Resolution Procedures to promote new and efficient supply and service compliance

OFCCP implemented Early Resolution Procedures (ERP) in 2018 to promote new and efficient supply and service compliance. Since then, ERP has been successful in allowing OFCCP to enter into many corporate-wide conciliation agreements. It also has enabled OFCCP to be more efficient with agency resources, reaching more contractor establishments than were scheduled to review.

OFCCP encourages contractors with multiple establishments to consider resolving issues found during a desk audit by voluntarily initiating ERP. OFCCP and a contractor can efficiently resolve preliminary findings by eliminating the Pre-Determination Notice (PDN) and Notice of Violation (NOV) process, and immediately discussing resolution through an Early Resolution Conciliation Agreement (ERCA). The contractor will voluntarily evaluate its other establishments, or a negotiated subset thereof, to ensure compliance in its personnel practices, such as hiring, compensation, promotions, and accommodations.

OFCCP will not schedule any of the contractor’s establishments covered by a signed ERCA for a new compliance evaluation for five years.

Since OFCCP began using ERP, the agency has achieved the following results:

• Signed 18 ERCAs to date, covering about 312,000 employees under monitoring and reporting at over 850 establishments covered by the ERCAs;
• Signed ERCAs have secured $31 million in back pay, and an additional $5 million in salary adjustment commitments over the next five years;
• OFCCP expects to have signed a total of 30 ERCAs securing more than $50 million in back pay by the end of the fiscal year in September;
• ERP contributed a reduction in the aged case rate from 22.8% in 2018 to 18.1% in 2019 and to 12% in March 2020, helping the agency meet its efficiency goal.

For further guidance on ERP, see the Department of Labor’s Directive 2019-02 to promote early and efficient supply-and-service compliance.