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EEO-1 Reporting Deadline: EXPIRED

OFCCP Issues Directive 2019-04 Voluntary Enterprise-Wide Review Program (VERP)

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Participation in the program will require a compliance review of the contractor’s headquarters location and a subset of establishments but will exclude establishment-based compliance evaluations for up to five years.

On February 13, 2019, OFCCP issued Directive 2019-04 Voluntary Enterprise-wide Review Program (VERP). The VERP directive establishes a voluntary compliance program for high-performing federal contractors. “The program enables OFCCP to blend its compliance evaluation and compliance assistance activities to work with high-performing contractors toward a mutual goal of sustained, enterprise-wide (corporate-wide) compliance, outside of OFCCP’s neutral establishment-based scheduling process.”

Under VERP, contractors who want to be recognized by OFCCP for their corporate-wide inclusion and compliance programs will have an alternative to OFCCP’s establishment-based evaluations. “OFCCP will remove accepted participants from the neutral process the agency uses to schedule establishment-based compliance evaluations for up to five years.”

The program will recognize the following two tiers of contractors: (1) top tier to include top-performing organizations with corporate-wide model diversity and inclusion programs, and (2) OFCCP compliant companies that will receive individualize compliance assistance to become top performers.

To participate in VERP, OFCCP will begin accepting applications online beginning in fiscal year 2020. During the application process, OFCCP will conduct a compliance review of the contractor’s headquarters location and a “subset of establishments.” For those contractors accepted into the program at the top tier, OFCCP will enter into an agreement of up to five years that removes the contractor from the neutral scheduling process for the length of the agreement, as long as the contractor abides by the terms. After the five year period, the contractor may be re-evaluated to stay in the program. Contractors in the program at the second tier can remain in the program for three years. To remain in the program, “contractors have to maintain a workforce free of discrimination or other material violations, and provide periodic reports and information to OFCCP through which OFCCP can confirm these efforts.”

Participation in the program does not preclude OFCCP from conducting individual and/or third party complaint investigations.

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