Preparing for Job Listing and Outreach in the Post-Election Compliance Landscape

1. Preparing for Job Listing and Outreach in the Post-Election Compliance Landscape 15th Annual Compliance Conference • Phoenix, AZ • November 16, 2012 Rathin Sinha President, America’s Job Exchange

2. Disclaimer Nota legal advice. The presentation is intended only to stimulate discussions among job board operators and users relating to the recent developments and proposed regulatory changes at the Office of Federal Contract Compliance Program (OFCCP).

3. An Engaged OFCCP The OFCCP has been active during the initial term of the Obama administration. “Under the Obama administration, OFCCP compliance officers have reviewed more than 15,000 companies that do business with the U.S. Government. During that period, we've recovered $38 million in back wages and more than 8,000 potential job offers for nearly 80,000 workers...” -Patricia Shiu, Director, OFCCP1 • Increased Prominence • New leadership • Budget increase • Staff Increase • Heightened Enforcement • Higher incidents of audits • Aggressive litigation • Larger penalties Sources 1Video speech at the National ILG Conference in Hawaii, 2012; http://www.dol.gov/ofccp/addresses/Director_address_NILG_Aug302012.htm

4. Protecting Employee Rights Protecting the benefits of wage earners/job seekers remains its primary agenda. President Obama, Secretary Solis and I believe that a 21st century American workforce ought to look like, sound like and truly reflect 21st century America.1 • President Barack Obama and Secretary of Labor Hilda Solis have made OFCCP's work a priority for this Administration and, as a result, the office is expanding.2 Obama’s OFCCP has proposed 10 major rule changes — far more than the four changes the regulator pushed during the Bush administration.3 The OFCCP is on a war footing... The “battle stations” in this war include the agency’s pending regulatory revisions, litigation, audits, and action on Capital Hill.4 Sources1http://www.dol.gov/ofccp/addresses/Director_address_NAWBO_Mar292012.htm 2 http://www.dol.gov/ofccp/about/ofccp_career.htm 3 http://www.law360.com/articles/375429/ofccp-s-regulatory-agenda-has-contractors-seething 4http://www.employmentlawdaily.com/index.php/2012/04/23/in-this-election-year-ofccp-and-federal-contractor-community-at-war-says-expert-john-fox/

5. Strengthening Regulations The OFCCP has proposed new regulations and changes to current regulations. • To improve employment opportunities for veterans and protected veterans • To improve employment opportunities for individuals with disabilities • To improve employment opportunities for women and minorities in the construction • To combat pay discrimination and develop new compensation data collection tool • To evaluate revisions to the guidelines on sex discrimination • To emphasize data collection, analysis , and data-driven review to track progress

6. Slow Implementation Publication of the final regulations and actual implementation remains incomplete. • Regulatory changes proposed in Federal Register • Public comments (NPRM) and feedback collected • Review of the public comments completed (?) • Discussions and hearing with OMB completed (?) • Timing of publication of final ruling NOT announced • Timeline of implementation NOT announced

7. Post Election Acceleration Continuity of the administration and no changes in DOL/OFCCP leadership will accelerate implementation. • Major focus to improve employment opportunities for the veterans and individuals with disabilities • Strict enforcement of compensation parity and possible development of compensation tool • Implementation of new scheduling letter with itemized information and expanded data tracking • Detailed adverse impact analysis, new compliance manual, focus on construction • Aggressive enforcement and audits with expanded coverage for first time contractors and SMB

8. Essence of Changes in Recruitment Changes related to recruitment of veterans and persons with disabilities can be grouped in three major areas. • Job Posting and Outreach • Mandates specific methods of internet job postings and distribution • Mandates additional outreach with community based organizations • Data Collection and Tracking • Pre-employment data collection for protected groups • Effectiveness of recruitment efforts by source of candidates • Analytics and Record keeping • Analysis of candidate availability and actual hiring, compensation • Annual review of recruitment efforts relative to goals and benchmarks

9. Recruitment Outreach for Protected Veterans Requires Specific Recruitment Efforts • Must engage in specific number of outreach and recruitment programs • Send job listings to the local employment service offices e.g. 1-stop centers • Develop and maintain ongoing relationship with local Veterans Representatives • Enter linkage agreement with listed organizations for recruitment and training • Consult with Employer Resources Section of the National Resource Directory

10. Data Collection and Tracking Requires Enhanced Data Collection and Tracking • Initiate requests to have candidates self identify prior to job offer and post • Track number of referrals from the state employment service delivery systems • Track ratio of protected veteran referrals collected as well as total referrals • Track number of total applicants and those who identified as protected veterans • Track number of total hires, as well as hires who identified as protected veterans • Number of job openings and number of jobs actually filled by division and location

11. Enhanced Analysis and Reporting Requires Enhanced Reporting and Data Analysis • Proof of job posting outreach to the appropriate state employment delivery system, veteran groups and CBO • Analysis and reporting of views and applies to the job opening from various sources e.g. job boards, state employment system etc • The ratio of priority referrals of veterans to total (referral ratio); protected veteran applicants to total (applicant ratio) • The ratio of protected veteran hires to total hires (hires ratio); ratio of jobs filled to job openings (job fill ratio) • Annual review of recruitment efforts and related data analysis to establish hiring benchmark and assess progress

12. Proposed Changes for Individuals with Disabilities Requires Specific Recruitment Efforts • Must engage in a minimum number of outreach and recruitment programs • Send job listings to the local employment One-Stop Career Center • Maintain ongoing relationship with local State Vocational Rehabilitation Agency • Enter linkage agreement with listed organizations for recruitment and training • Consult with Employer Resources Section of the National Resource Directory Enhanced Data Tracking and Analysis • Initiate requests to have candidates self identify prior to job offer and collect data • Track number of referrals from the state employment service delivery systems • Track ratio of disability referrals to total referrals & maintain data for 5 years • Establish 7% as a hiring goal for this group and conduct annual review of progress

13. Impact on Contractors Federal contractors are already feeling the challenge of compliance in the post AJB era. The proposed changes impose additional requirements. • Changes in Systems and Processes Career Site, ATS, HRIS, AAP/EEO-1/VETS-100 Submittals • Cost of Expanded Outreach Direct cost and adminsitrative burden of job postings • Data Collection and Tracking Collect, manage expanded set of data; protect for privacy • Complexity/Inconsistency of Enforcement Individual interpretation of regulations

14. Job Posting Outreach by AJE State Job Bank - Mandatory Postings State Employment System- Outreach e-Mail Community Based Organization (CBO) - Outreach e-Mail Niche Job Board - Partner Posting Job Aggregator - Sponsored Posting AJE Job Alert Emails AJE Veteran Exchange AJE Social AJE Mobile AJE National Job Opening

15. Job Outraech Reporting Create reports for the company as a whole or for specific locations or subsidiaries. Detailed outreach and distribution information, including delivery method and date and time stamp. Reports can be saved and exported to PDF and Excel.

16. Job Records Reporting Individual job records provide the details on distribution to our network partners and the states. Links to job descriptions on AJE exchange sites along with links to outreach partner sites.

17. More Job Records Reporting Links to emails and CSV files as evidence of distribution to community partners and state one-stop offices. Jobs manually posted to the states include the state confirmation ID in your report.

18. Results by Recruitment Effort Job traffic results are available in total or by source for all of AJE’s traffic sources.

19. Total Solution from AJE The AJE solution is used hundreds of leading brands for recruitment compliance

20. Final Thoughts The election has affirmed continuity of the administration and policies; and a new normal has been established by the OFCCP. • Accelerated pace of change The OFCCP is expected to continue and possibly expand its enforcement while implementing new regulations • Contractors must prepare Federal contractors must stay prepared at all times to effectively navigate through the changes • Focus on key items It is important to work with third party service providers who bring solutions, expertise and cost advantage • We at AJE can help you Since the days of the America’s Job Bank program, AJE has been helping contractors with recruitment and compliance

21. Rathin Sinha rsinha@americasjobexchange.com