Week three of October 2023 came with interesting developments in the world of legal enforcement by the Office of Federal Contract Compliance Programs (OFCCP). This week marked the beginning of the federal Fiscal Year 2024, the closure of the Fiscal Year 2023, and revealing results for OFCCP.
As reported in an article by DirectEmployers Association, OFCCP’s enforcement statistics on discrimination law enforcement hit new lows. Only 29 discrimination law settlements, also known as Conciliation Agreements (“CAs”), were recorded, worth a total of $9,779,529.79 in back pay. This figure was calculated two weeks after the close of the Fiscal Year 2023 on September 30.
The low figures are consequential for both corporations and law firms alike. Legal professionals should monitor the OFCCP’s enforcement trends as they could impact the degree and focus of future corporate audits and the legal advice necessary for corporations to remain compliant. Conversely, the OFCCP will likely attempt to remedy its lowered performance results by stepping up its enforcement efforts in the coming Fiscal Year 2024.
In closing, it is not yet clear what these decreased enforcement statistics mean for the future of OFCCP or for corporations needing to ensure compliance and mitigate risk. Legal professionals will be keeping a keen eye on developments as the new fiscal year progresses.