The Obama Administration’s increased enforcement of affirmative action obligations has significantly boosted the burden
for employers to demonstrate compliance. Not only has the Office of Federal Contract Compliance (OFCCP) received a
generous budget increase, the Agency is adding more than 200 full-time employees to assist with its enforcement initiatives.
New strategies and tactics, including more frequent on-site compliance evaluations, requests for additional analyses and
new documents, and a continued narrow focus on pay equity, will impact employers now and in the years to come. The
hospitality industry has been and continues to be a frequent target. On February 3, 2010, the Center for Corporate Equity
released a report on the OFCCP that noted the impressive “record breaking” enforcement results for the agency for fiscal
years 2005-2008 (pre-Obama administration), and reported that the food service industry overall was the most common type
of employer involved in an OFCCP settlement in fiscal year 2009. For information on the OFCCP’s announced new strategy
and tactics, click here to read our Management Alert.