On June 7, 2024, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) published its latest Corporate Scheduling Announcement List (CSAL) for supply and service contractors, designating 500 contractor and subcontractor affirmative action programs (AAPs) for potential audit.
This latest CSAL list specifically targets larger AAPs for audit. In combination with significant changes that OFCCP made to its scheduling letter and audit practices in 2023, the new audits will present the highest risk of OFCCP systemic hiring and pay discrimination allegations in many years.
What’s a CSAL?
Although not an official audit “scheduling letter” notice, per OFCCP the CSAL is “a courtesy notification” to an establishment selected for a compliance review (also known as an “establishment review”), corporate management compliance evaluation (CMCE), functional affirmative action program (FAAP) review, or university review. Thus, the fact that a listed employer is on the CSAL does not necessarily mean the employer will be audited in the near future — just that it likely will be. Likewise, the fact that an employer or given location is not on the list does not mean that it will not be audited, as OFCCP can send an audit scheduling letter without giving employers a CSAL heads-up.
Regardless, employers with AAPs on the list should use the advance warning of a future OFCCP audit as an opportunity to engage experienced counsel to conduct a privileged risk management review and promptly begin human resources, legal, and other preparations.
Who’s on the New June 2024 List?
In the past, CSAL letters were mailed to federal contractors and subcontractors for advance notification. OFCCP, however, no longer does this and simply posts periodic CSALs on the agency’s website. Employers should therefore review the latest CSAL to determine if they are listed — even if they believe they are not a current federal contractor or subcontractor (as listing errors can sometimes occur).
The new CSAL can be downloaded at the following site by clicking “FY 2024 CSAL Supply & Service Scheduling List, Release – 1.”
How Was the June 2024 List Developed?
With respect to how the June 7, 2024, CSAL was compiled, per OFCCP:
- OFCCP created the beginning pool of eligible contractors for the list by downloading federal contracts valued at $50,000 or more from the USAspending database.
- OFCCP removed contracts awarded to federal, state, local, municipal, tribal, city, and foreign governments, school districts, and construction companies.
- OFCCP also removed healthcare contracts that fall under OFCCP’s (a) Final Rule: Affirmative Action and Nondiscrimination Obligations of Federal Contractors and Subcontractors: TRICARE Providers, and (b) Extending the Scheduling Moratorium for Veterans Affairs Health Benefits Program Providers Directive (DIR 2021-01).
- Further, OFCCP removed contract records expiring on or before Dec. 31, 2024.
OFCCP refined the pool of eligible contractors and subcontractors by prioritizing contractor establishments with the highest employee count in each district office’s jurisdiction. After that, per OFCCP:
- OFCCP matched company names and addresses against federal 2021 EEO‐1 filings to obtain employee counts.
- For each parent company with at least one contract of $50,000 anywhere in the organization, OFCCP included (a) all U.S. establishments with at least 500 employees, (b) establishments in U.S. territories with at least 150 employees, and (c) FAAP units with at least 300 employees that meet the scheduling list’s other criteria.
- OFCCP refined the pool of eligible financial institutions by downloading FDIC-insured banks, addresses, and employee counts from the FDIC’s publicly available database.
- In addition, OFCCP then removed establishments and FAAP units that were: (1) currently under review, (2) currently in a monitoring period pursuant to a conciliation agreement, (3) currently within the exemption period following a closed review, (4) currently pending scheduling for review from a prior scheduling list, or (5) under an active separate facilities waiver.
In addition, OFCCP reportedly then used the following criteria to finalize the scheduling list, selecting:
- Five CMCE reviews per OFCCP region, prioritizing those with the highest employee count in a district office’s jurisdiction;
- Establishments with the highest employee count within each district office’s jurisdiction for establishment reviews (with no more than two establishments of any parent company);
- Four FAAP units per OFCCP region, prioritizing those with the highest employee count in each district office’s jurisdiction (with no more than two FAAP units of any parent company);
- Two financial institutions for review per OFCCP region, prioritizing those with the highest employee count in each region; and
- One college/university for review per OFCCP region, prioritizing those with the highest employee count in each region.
Where Can I Learn More?
For added details, please follow the links below to OFCCP resources.
