On Nov. 20, 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 2,000 contractor and subcontractor affirmative action program (AAP) establishments for potential audit.
As in the spring, OFCCP specifically targeted larger AAPs for audit on this latest list. However, unlike the spring list (which only listed 500 sites for audit), the November list is extensive — effectively “filling the pipeline” for OFCCP activity going into the new administration. The related risk regarding OFCCP systemic hiring and pay discrimination allegations is significant as well.
What is a CSAL?
OFCCP CSALs are not the same as an official audit “scheduling letter” notice. A CSAL is “a courtesy notification” to an establishment selected for a compliance review (or “establishment review”), corporate management compliance evaluation (CMCE), functional affirmative action program (FAAP) review, or university review. The fact that an employer is on the CSAL does not necessarily mean the employer will be audited at a listed site, only that it likely will be. Likewise, the fact that an employer or given location is not on the list does not mean that that a site will not be audited. OFCCP can send an audit scheduling letter without giving employers a CSAL heads-up.
Employers with establishments on the list should use the advance warning of an audit as an opportunity to engage counsel to conduct a privileged risk management review and promptly begin audit response preparations in coordination with human resources, legal, compensation, and other team members.
Who Is on the November 2024 List?
In the past, CSAL letters were mailed to federal contractors and subcontractors for advance notification. OFCCP no longer does this and simply posts periodic CSALs on the agency’s website. Employers should 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 often occur.
The new CSAL can be downloaded here by clicking “FY 2025 CSAL Supply and Service Scheduling List, Release 1.”
How Was the November 2024 List Compiled?
OFCCP compiled the November 2024 CSAL through the following process:
- 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 removed companies that only engaged in construction contracts with the federal government.
- OFCCP 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) Directive: Extending the Scheduling Moratorium for Veterans Affairs Health Benefits Program Providers Directive (DIR 2021-01 Revision 1).
OFCCP then refined the pool by prioritizing contractor establishments with the highest employee count in each district office’s jurisdiction (which is what the agency reportedly did with the June 2024 CSAL). After that:
- OFCCP matched company names and addresses against federal 2022 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 400 employees, and (b) establishments in U.S. territories with at least 50 employees. (There was no reported reference as to how OFCCP refined FAAP units or eligible financial institutions.)
- OFCCP then removed establishments and FAAP units that were (a) currently under review, (b) currently in a monitoring period pursuant to a conciliation agreement, (c) currently within the exemption period following a closed review, (d) currently pending scheduling for review from a prior scheduling list, or (e) subject to an active separate facilities waiver.
OFCCP next used the following criteria to finalize the scheduling list, selecting:
- Establishments and CMCEs with the highest employee count within each district office’s jurisdiction for review (with no more than 10 establishments of any parent company);
- 10 CMCE reviews per OFCCP region “that did not have more than 10 establishments per OFCCP region”;
- Eight FAAP units per OFCCP region, prioritizing those with the highest employee count in each regional office’s jurisdiction (with no more than four FAAP units of any parent company);
- One hospital for review per OFCCP region; and
- Two colleges/universities for review per OFCCP region.
Where Can I Learn More?
OFCCP resources regarding the latest CSAL are available below:
