OFCCP audit support: 2 things you need to know about audit penalties

August 24, 2020 at 7:00 AM

As the manager and leader of your team, you have a never-ending list of tasks to worry about. Sometimes, administrative duties and paperwork take a backseat to everything else.

But unfortunately, things like OFCCP audits can take place, and you need to be prepared for them if they do happen. Otherwise, your company can face huge — and costly — penalties.

Here’s what you need to know about OFCCP audit penalties, and how you can get the OFCCP audit support you deserve.

1. Things that can result in OFCCP audit penalties

Here are two of the most common things that OFCCP violations auditors look for:

Record-keeping violations

Auditors review the documentation your company has in place for its hiring, transferring, promoting, and terminating processes. You’ll also have to prove that your documentation and your processes are up to standards and above-board.

To move this process along quickly, consider investing in a streamlined recordkeeping software (even better if it’s cloud-based) to keep everything accessible and ready for any audit that comes your way.

Recruiting and affirmative action plan violations

Government contractors must adhere to an affirmative action program (AAP), which dictates much of how a company approaches its recruiting efforts. Therefore, OFCCP auditors will also review your recruiting process, starting from your job postings to your hiring and promotions process and beyond.

If your company doesn’t have one already, ensure that you have an applicant tracking system (ATS) in place so you don’t lose any applications and can monitor your hiring efforts throughout the process. You’ll also want to have copies of your company’s AAP as well as detailed data on your company’s recruiting, promotions, and termination efforts on hand.

2. Penalties your company may incur during an OFCCP audit

What you may get penalized with:

  • Monetary fines that can range from a few thousand dollars to penalties costing millions — and often must be paid in 30 days or less
  • A conciliation agreement and reporting schedule, where your company pledges to implement certain guidelines or practices by a certain time to fix the issues revealed by your audit
  • Back pay for all applicants and employees affected by your record-keeping or AAP violations

But the effects of an audit extend beyond that — you may find that the following things are affected too:

  • Time dedicated to other projects that must now be dedicated to audits and changes
  • Negative news coverage and impact on your company’s reputation, which would then affect your recruiting efforts
  • A very real possibility of another OFCCP audit in the future, even if you aren’t penalized this time

Get in touch with InterConnect Human Resource Services

When you’re in need of OFCCP audit support, turn to our team of experts.

We provide outsourced HR support to federal contractors to ensure they remain compliant with the requirements of the Office of Federal Contract Compliance Programs, as well as other government organizations.

Many companies don’t realize that they need to maintain compliance requirements. Those that are caught without them may face severe penalties. But with InterConnect by your side, you’ll never have to worry about that again.

Learn more about our services by filling out the form on our website. Otherwise, schedule your free consultation today to learn how you can hand off your HR compliance responsibilities to a partner you can trust.