The OFCCP’s Focus on Accurate EEO-1 Reporting

The United States Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has announced an initiative to establish a comprehensive database of all federal contractors subject to Executive Order 11246. OFCCP has used annual EEO-1 reports to determine whether a company was a federal contractor. OFCCP has concluded, however, that many EEO-1 reports are incomplete or inaccurate with respect to federal contractor status. As part of the effort to establish a comprehensive database, OFCCP will carefully scrutinize the EEO-1 reports submitted to the government to check whether companies are accurately identifying themselves as federal contractors.

OFCCP is now comparing its current database of federal contractors (as generated by past EEO-1 reports) with lists of federal contractors compiled by the General Services Administration and the Federal Procurement Data System. Given OFCCP’s increased focus on accurate EEO-1 reporting, companies should determine (1) whether they are a covered federal contractor and (2) whether they have accurately reported their federal contractor status on the EEO-1 report.

There are significant consequences for inaccurate reporting. The consequences may include penalties for intentional false statements and increased audit focus and investigation by OFCCP. Given the upcoming deadline of September 30, 2005, for filing EEO-1 submissions to the Equal Employment Opportunity Commission, this is an appropriate time for companies to address carefully the accuracy of their EEO-1 reports.