Following last year’s trend, the Office of Federal Contract Compliance Programs’ (“OFCCP” or “Agency”) website indicates that February 1, 2018, the Agency mailed 1,000 Corporate Scheduling Announcement Letters (“CSALs”). The CSALs do not commence an audit – only a scheduling letter can do that – but they provide an advance courtesy notice that an organization has been identified by the Agency and may receive a scheduling letter for an audit. 

What does this mean? Organizations that receive CSALs should take the extra time provided to ensure their affirmative action programs and supporting documents are up to date and fully compliant. Organizations should also review their adverse impact data and any potential pay disparities. The CSALs have once again been sent directly to the attention of the Human Resources Director; therefore, it is important to alert HR representatives to watch for the letters. 

Take note, CSALs are not required by law prior to the issuance of a scheduling letter for an audit, which means federal contractors and subcontractors that do not receive a CSAL may still be scheduled for an audit. Whether an organization receives a CSAL or not, contractors can still receive scheduling letters, which the OFCCP’s website notes will be issued on March 19, 2018.  As a reminder, once an organization receives a scheduling letter, there are only 30 days to respond with the initial submission. 

Shifting from past practices, the OFCCP will limit audits in 2018 to: 

• No more than 10 establishments of a single contractor placed on the scheduling list; 
• No more than four establishments of a single contractor placed on the scheduling list for a single district office; and
• No establishment with an audit closed in the last five years is placed on the scheduling list.

The OFCCP has not indicated which industries will be targeted, as it has done in past years. Polsinelli will continue to monitor developments and will provide updates as they become available. In the event your organization received a CSAL, we recommend you contact counsel immediately.