On August 25, 2023, the Office of Federal Contract Compliance Programs (OFCCP) announced the approval of its new Scheduling Letter and Itemized Listing by the Office of Management and Budget (OMB). The latter document delineates new requirements, with federal contractors mandated to submit significant additional data and information to the OFCCP at the start of audits. This development heralds an explicit shift toward a vigorous audit approach from the OFCCP, as well as providing the federal agency with a wider remit for spotting potential investigation areas during such audits, a development reported by Morrison & Foerster LLP.
This development adds a layer of complexity for federal contractors navigating regulatory compliance and audit preparedness. However, the broad implications of the new scheduling letter don’t stop at companies undergoing audits. It also cascades to law firms serving these corporations, who will need to align their advising strategies with the OFCCP’s transformed procedures. As such, a comprehensive review of the contractor’s process of providing the required information and data should be high on every organization’s compliance checklist, while law firms need to match this urgency to remain effective advisors.
The multi-faceted impact of the OFCCP’s initiative underscores the need for corporate leaders and legal professionals to stay abreast of the evolving regulatory landscape. They will have to scratch beneath the surface of the compliance requirements and fully understand their newly inscribed obligations. It is the only way these companies can robustly prepare for any audits that might be on the horizon, while for law firms, to continue providing appropriate legal guidance.