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FY 1999 Performance Report March 31, 2000Table of ContentsIntroduction GOVERNMENT PERFORMANCE AND RESULTS ACT FISCAL YEAR 1999 PERFORMANCE REPORT INTRODUCTIONThe Government Performance and Results Act (GPRA) requires Federal agencies to establish standards for measuring the performance and effectiveness of their programs and services. The law requires that agencies develop strategic plans that describe their long term goals and objectives; annual performance plans that provide goals to assess yearly progress toward meeting the strategic goals; and annual reports to Congress that summarize success in achieving the performance goals in the annual performance plan. Fiscal year 1999 is the first year that Federal agencies have been required to develop an annual performance report. The Department developed an extensive report that included detailed information on the selected ESA performance goals contained in the Departmental plan. This document reports on results for all of the ESA FY 1999 performance goals. THE AGENCYAs the largest Agency within the Department of Labor (DOL), over 4000 employees carry out the Employment Standards Administration’s (ESA) mission from locations in regional, district, area, and field offices throughout the country to ensure that the enforcement and benefit delivery programs are accessible to the American public. ESA administers programs to implement over 100 laws enacted by Congress to protect the basic rights of workers, including minimum wage, child labor, and overtime pay standards, equal employment opportunities for employees of Federal contractors, workers’ compensation benefits, as well as workers’ rights as union members. Nearly every worker in America is protected by laws and regulations administered by ESA programs. The work of ESA is carried out by four major program offices within the Agency: the Wage and Hour Division (WHD), the Office of Federal Contract Compliance Programs (OFCCP), the Office of Workers’ Compensation Programs (OWCP), and the Office of Labor-Management Standards (OLMS). MISSIONThe mission of ESA is to enhance the welfare and protect the rights of American workers. STRATEGIC PLANNING IN ESAThe Department of Labor began work on implementing the GPRA soon after it was passed. The experience has been beneficial for our programs and the customers we serve. In ESA, each revision of our GPRA plans, based on our performance experience, has incrementally helped us strengthen our planning and refine our goals. With the knowledge gained over several years of GPRA experience, the Agency began work on the new ESA FY 1999 - FY 2004 strategic plan in the spring of 1999. (This plan will replace the FY 1997 – FY 2001 strategic plan.) The new draft plan integrates ESA’s programs, includes revised and additional goals, and delineates the alignment of ESA’s goals with those of the Department. While all of the performance goals in the ESA strategic and performance plans support the Department’s long-term strategic goals, only selected ESA performance goals appear in the Department’s Strategic and Performance Plans. Additional significant program goals appear in the ESA strategic and performance plans. ESA is focused on its vision of achieving universally applied fair practices in the American workplace. To that end, each of ESA’s four major Program Offices, directed by legislative mandates, target available resources to achieve the most effective results. Through the collective efforts of each of ESA’s four major Program Offices, workers and employers are better informed of their rights and responsibilities. Better and more readily available information generally results in behavior changes which improve compliance with the Fair Labor Standards Act, Equal Opportunity laws, the safeguarding of union democracy and the minimization of the impact of work-related injuries. For employers who are not voluntarily complying, however, enforcement is the result. Either way, change occurs in workplaces as a result of these efforts. Whether this workplace change is driven by compliance assistance, partnership, education, recognition or enforcement activities, the ultimate result is to create better workplaces, ESA’s first strategic goal. ESA and its major Program Offices are responsible for the stewardship of resources, trust funds, and the management of programs and services. To support the Program Offices in achieving their goals, ESA’s strategic planning establishes a management framework which links the program, administrative and management operations of the agency. This helps ensure that the Program Offices in ESA work together to achieve the Agency’s overall goals and that they are supported by the administrative and management systems and operations necessary for their goal accomplishment. Through effective management and integrated delivery of its various programs and services, ESA will demonstrate a positive impact on the welfare and rights of American workers which will secure public confidence, ESA’s second strategic goal. To accomplish the multi-year strategic goals, ESA has developed annual performance goals as interim measures of accomplishment. SUMMARY OF FY 1999 PERFORMANCE RESULTSESA measured performance results on 22 performance goals in FY 1999 that represent key activities in all of the major program offices and administrative goals in the areas of financial management, information technology and human resources. Of the 22 performance goals, ESA exceeded or fully achieved 14 (64 percent) of these goals during this first year of managing under the provisions of the Government Performance and Results Act. See Appendix A for a summary listing and tally of these ESA FY 1999 performance goals. Appendix B contains detailed data matrices, including performance results, for each ESA FY 1999 performance goal. Based on FY 1999 performance, strategies and the planned annual performance targets were reevaluated, resulting in some revisions to strategies, annual targets and FY 2000 and FY 2001 performance goals. These revisions refine our efforts toward accomplishing our desired long-term outcomes. In Appendix B, we have intentionally included the FY 2000 performance goals in each data matrix, to illustrate the impact of our FY 1999 performance on our planning for FY 2000. Each matrix delineates the link to strategic and outcome goals to demonstrate how each performance goal supports overall achievement of the ESA and Departmental goals. LINKAGE TO THE DOL PLANAll of ESA’s goals support two of the Secretary’s strategic goals. They are the goals for A Secure Workforce, to promote the economic security of workers and families; and, Quality Workplaces, to foster quality workplaces that are safe, healthy, and fair. ESA supports two outcome goals for A Secure Workforce – increase compliance with worker protection laws and, protect worker benefits; and, one outcome goal for Quality Workplaces – foster equal opportunity workplaces. The direct alignment is displayed in each of the performance goal matrices that appear in Appendix B. These goals provide the framework for the chapter on cross-cutting activities in this report. KEY ACHIEVEMENTS AND HIGHLIGHTS FOR FY 1999Wage and Hour DivisionBackgroundThe Wage and Hour Division is responsible for administering and enforcing a number of laws that establish the minimally acceptable standards for wages and working conditions in this country. These labor standards statutes, including the Fair Labor Standards Act (FLSA), which establishes the minimum wage, overtime standards and child labor restrictions, protect the most vulnerable in the workplace – young workers, low-wage workers, and the working poor. Traditional complaint-based interventions had not been effective in securing widespread substantial labor law compliance with the minimum wage, overtime, recordkeeping and child labor provisions of the FLSA. Only those employers investigated by Wage and Hour changed their violative behavior, at least in most cases. The interventions may have changed the behavior of an individual employer, but they were not changing patterns of compliance in an industry. Wage and Hour needed to impact or change the behavior and practices of whole industries, particularly those in which violations are most likely to occur – the low-wage industries. These industries were also most likely to employ vulnerable workers who often won’t complain about violations or are less informed about their workplace rights. An area of special focus and one of the Secretary’s priorities is domestic child labor. While young workers can benefit greatly from positive work experiences that complement their education and that are safe, the number of working children who are seriously injured or killed on-the-job is unacceptable. Tough, fair enforcement, compliance education, effective partnership and elevated public awareness help to increase compliance with child labor standards, which reduce injuries and fatalities to young workers and help ensure that their early work experience enhances rather than competes with their education. Another focus for Wage and Hour is the labor standards protection, provided by the Davis-Bacon Act, for construction workers employed on Federally-financed construction projects. Because the construction sector is labor-intensive, one of the easiest ways to lower bid prices is to cut labor costs. The primary purpose of the Davis-Bacon Act is to assure, by requiring the payment of locally prevailing wages, that Federal contracting practices do not undercut workers’ wages in the community and do not place local contractors, and local workers, in an unfair competitive situation. Activities are underway to determine whether a reinvention or reengineering process should be undertaken to provide reliable, timely and accurate wage determinations. The Service Contract Act (SCA) provides labor standards protection for service employees working on Federal service contracts. On most service contracts, labor costs are the primary cost component. The competition for Federal service contracts is often fierce and without the labor standards protections afforded by SCA, bidders for Federal service contracts might be enticed to cut contract cost simply by cutting employee wages. Without SCA, many basic service contracts, e.g., janitorial, guard and food service, involving unskilled, low-paid workers, would be particularly susceptive to such wage cutting practices. In this environment, timely and accurate SCA wage determinations are important for ensuring that service employees are fairly compensated without disrupting the orderly functioning of the Federal procurement process. FY 1999 Highlights -- Wage and HourThe Wage and Hour Division completed 49,000 investigations and recovered $131.6 million in back wages for more than 260,000 workers. Wage and Hour assessed more than $2.1 million in civil money penalties for repeat and willful violations of the Fair Labor Standards Act. One of the Nation’s largest retailers implemented a corporate-wide program to ensure compliance with child labor laws in its more than 800 stores. In addition to conducting self-audits of its stores, the retailer agreed to enhance training for store managers and young workers to ensure compliance in the future. The company also implemented a program to provide informational material to the parents of all young employees under the age of 18. A Secretarial priority is to ensure that the Nation’s youth have opportunities for legal, constructive and safe work experiences that enhance, rather than compete, with their education. In 1999, the Secretary launched her Safe Work/Safe Kids initiative designed to increase compliance with the Nation’s child labor laws and maintain momentum in reducing on-the-job injuries to young Americans. In the FY 1999 onion harvest in the Texas Rio Grande Valley, Wage and Hour investigations found no instances of child labor violations – unlike FY 1998 when over 50 children, ages five to 11, were found illegally employed. The increased compliance is attributable to compliance agreements signed by several of the local growers requiring them to monitor their fields and farm labor contractors for compliance. In addition, the Texas Produce Association, local school districts, the United Farm Workers and a group of growers worked in partnership with Wage and Hour to establish the Child Care Management Services, a day care program for migrant family children as an alternative for accompanying their parents to the fields and working illegally. This program is now being replicated in other agricultural areas. The Wage and Hour Division and the Immigration and Naturalization Service signed a revised memorandum of understanding aimed at promoting job opportunities and better working conditions for legal U.S. workers through strengthened enforcement of fair labor standards and employer sanctions. A key goal of the agreement is to allay fears in the immigrant community that prevent complaints about labor abuses by unscrupulous employers from being filed with the Department. Many of these workers are employed in low-wage industries which Wage and Hour has targeted for increased compliance with U.S. labor laws. In low-wage industries such as garment, agriculture and healthcare, the Wage and Hour Division pursues a multi-prong strategy of enforcement (targeted investigations, invoking the “hot goods” provision of FLSA, assessment of penalties and development of cases for criminal prosecution), education/outreach (compliance seminars for employers, town hall meetings for workers and distribution of a variety of compliance assistance materials) and partnerships (compliance agreements involving multi-establishment employers, interventions by commercial suppliers/customers of products made in violation of FLSA, and development/maintenance of relationships with nonprofit organizations, States and other Federal agencies.) In FY 2000, Wage and Hour plans to measure compliance levels in different sectors of those industries and to allow for two to three years of intervening strategies in those sectors. In particular, specific activities are being carried out for new and small businesses because the compliance surveys showed lower rates of compliance for these firms. It is expected that the intervening year strategies to improve compliance will be reflected in subsequent compliance surveys. In the Davis-Bacon Act, another Wage and Hour responsibility, the underlying purpose can be accomplished only to the extent that timely and accurate determinations of prevailing wages are developed and issued. Over the past two years, ESA has been developing two possible alternatives for improving the wage survey/determination process. A recent report by the General Accounting Office concluded that these two alternatives have the potential for improving the accuracy and timeliness of Davis-Bacon wage determinations. Because both approaches, reengineering and reinvention, are still being tested for feasibility and potential comparative costs, ESA will not be in a position to fully evaluate these two approaches until the end of FY 2000. At that point, ESA will be in a position to assess the relative merits of the two alternatives based on established performance criteria of accuracy, timeliness, reliability, administrability, continuity and cost. Also, in this fiscal year, the Department expanded its interactive electronic information source, elaws, to provide easy public access to compliance assistance information on child labor and the Fair Labor Standards Act. Office of Labor-Management StandardsBackgroundThe Office of Labor-Management Standards (OLMS) administers the Labor-Management Reporting and Disclosure Act of 1959, as amended (LMRDA) and related laws, which primarily establish safeguards for union democracy and union financial integrity. The LMRDA applies to private sector labor organizations and, by virtue of the Postal Reorganization Act, to unions in the U. S. Postal Service. Similar standards apply to unions in the Federal sector. In carrying out its responsibilities under the LMRDA to ensure union democracy and fiscal integrity, OLMS administers a reporting and public disclosure program, conducts civil and criminal investigations, union compliance audits, and compliance assistance activities. Investigation of union officer elections (civil) and the embezzlement of union funds (criminal) are the program’s two major enforcement activities. Under Title IV of the LMRDA, OLMS investigates an officer election upon receipt of a timely filed complaint from a member and must, as required by the LMRDA, complete its investigation within 60 days. If warranted, OLMS may take legal action to set aside the challenged election and order a new election under OLMS supervision. OLMS conducts complaint-based and agency-initiated criminal investigations to protect and safeguard union funds and assets. Union officers and employees may be barred from holding union office or employment for up to 13 years if convicted of certain crimes, including embezzlement, and in many cases are ordered by a U.S. District Court to make restitution to the union. OLMS also investigates possible criminal and civil violations of other sections of the LMRDA involving bonding, illegal loans to union officers and employees, trusteeships, and other matters. Compliance assistance is an important element of the OLMS enforcement strategy. The ultimate objectives of compliance assistance are to reduce the need for investigations and remedial actions and encourage union members to exercise their rights under the law. Additionally, well-planned compliance assistance and liaison activities result in increased awareness of possible statutory violations. OLMS responds to frequent union requests for seminars providing guidance on union reporting and officer election requirements. OLMS compliance assistance activities include seminars/workshops, mailings, personal visits, distribution of explanatory publications, and liaison with international union officials. Compliance assistance is also provided directly to union officials during OLMS enforcement activities and compliance audit programs. The OLMS Division of Statutory Programs administers employee protections under various Federally-sponsored transportation programs by certifying fair, equitable protective arrangements for transit employees when Federal funds are used to acquire, improve, or operate a transit system. The Department’s certification assures that impacts on employees are minimized when transit funds are provided to States and municipalities. The issuance of these certifications within established timeframes is critical to protecting the rights of mass transit workers affected by these projects. FY 1999 Highlights -- Office of Labor-Management Standards Under the LMRDA statutory scheme, union democracy and financial integrity are promoted through union reporting and public disclosure of the information reported. Timely reporting is essential to attaining that objective, and an important agency goal is to increase the rate of timely reporting compliance of unions with annual receipts greater than $200,000, which command the greatest public disclosure interest. In FY 1999 the timely filing rate increased to 89.8 percent, a substantial improvement over timely filing rates of 83 percent in FY 1998 and 79 percent in FY 1997. The FY 1999 performance results exceeded the goal for FY 2000 as well as that for FY 1999. Performance results will be monitored in FY 2000 to determine whether performance targets should be adjusted. In further support of efforts to improve the LMRDA reporting and public disclosure program, OLMS is developing a new electronic reporting system that will include a computer-based report audit program and a new Internet-based public disclosure system. Extensive developmental work was accomplished in FY 1999. Pilot testing is planned for late FY 2000, and full implementation is expected early in CY 2001. In addition to administering reporting and disclosure program responsibilities, OLMS completed significant LMRDA enforcement work to promote union democracy and financial integrity. OLMS conducted 176 union officer election investigations based on complaints by union members and supervised 35 remedial election reruns. OLMS conducted 289 compliance audits in labor organizations and 385 criminal investigations. In FY 1999, 117 indictments and 130 convictions resulted from OLMS criminal investigations. In FY 1999 the OLMS Division of Statutory Programs substantially met the established goal to ensure 100 percent timely certification of employee protective arrangements for transit workers affected by Federal transit grant projects. The Division issued 98 percent of employee protection certifications within the 60-day time period in established guidelines. Office of Workers’ Compensation ProgramsBackgroundThe Office of Workers’ Compensation Programs (OWCP) administers three major disability compensation programs which mitigate, through the provision of wage replacement and cash benefits, medical treatment, vocational rehabilitation, and other benefits, the financial burden on certain workers, or their dependents or survivors, resulting from work-related injury, disease, or death. The Federal Employees’ Compensation Act (FECA) program provides income and medical cost protection to civilian employees of the Federal Government injured at work and to certain other designated groups. The Longshore and Harbor Workers’ Compensation Act program provides similar protection to private sector workers engaged in certain maritime and related employment. The Black Lung Benefits program provides protection to the nation’s coal miners suffering from pneumoconiosis. These benefits are financed through direct Federal appropriations, earmarked tax revenues, and legislatively mandated private sector liability insurance arrangements. The traditional focus of the workers’ compensation programs has been to ensure accurate and timely claims adjudication and payment of benefits. Major initiatives in recent years have extended that focus and committed the organization to a more dynamic service delivery program that better protects both the economic security of eligible workers and the interests of employers and the Federal government. When a worker covered by OWCP becomes disabled by work-related injury or illness, the program is pledged, when possible, to return that worker to gainful employment as quickly as is medically appropriate. At the same time, the program assists with income replacement benefits, medical treatment, and rehabilitation services. In carrying out its fiduciary responsibilities, OWCP has extended its ability to contain cost and enhance the security and integrity of its benefit funds. FY 1999 Highlights -- Office of Workers’ Compensation Programs OWCP continues to use new technology and enhanced ADP operations to improve work quality and increase efficiency and productivity. Automated communications systems and work processes, electronic information exchange, and document imaging are increasingly becoming the norm for OWCP operations. In FY 1999, the office developed the document imaging pilot system architecture to be installed in FECA district offices; implemented inpatient hospital and pharmacy services medical fee schedules; completed modifications for electronic acceptance of notice of injury reports from agencies; and completed Y2K compliance testing and remediation meeting OMB’s March deadline. In all three of the OWCP programs, internal regulations have been reduced and key claim workloads and administrative and management processes have been streamlined. Union/management teamwork and increasing delegation to front-line employees have enhanced efficiency and extended the degree of employee involvement in program operations. Customer surveys have assisted OWCP in identifying needed improvements in communications and service, new communication strategies, and strengthened technical assistance. Each Secretarial-level performance goal was exceeded in FY 1999. In FECA, new disability management strategies and strengthened vocational rehabilitation assistance characterize the program’s emphasis on return to work. The program’s major objective is to reduce the average number of workdays lost in new injury cases through early intervention and better medical care and reemployment assistance. Reducing lost production days promotes Federal workforce security. In FY 1999, average lost production days (LPD) was reduced by 9 percent, to 173 days, producing a savings of $9.6 million in the cases measured. The target was a 6 percent reduction. Speedy recovery and return to work become more likely if new injuries are reported promptly, enabling OWCP to intervene earlier. An OWCP goal, arising out of its partnership with Federal employers to improve service delivery, is to assist agency performance and improve the timeliness of filing of new injury reports. The result in 1999 was to increase the average time to 52.7 percent within 14 days, against a goal of 51 percent. Periodic Roll Management (PRM) provides quality management of the long-term disability roll by conducing specialized case review to determine continued entitlement to compensation benefits. Where disabilities have lessened or resolved, workers are provided with rehabilitation and reemployment assistance, and benefit amounts are adjusted accordingly. In FY 1999, PRM produced $20.8 million in compensation benefit savings, exceeding target by 9 percent. Fiscal control of medical costs is also a major focus in the FECA program. Beginning in January 1999 when they became effective, new medical fee schedules reduced inpatient hospital charges by 28 percent and pharmacy billings by 10 percent. Combined with other savings from the fee schedule on physician charges already in place, total FECA medical services charges were reduced by 22 percent, compared to the goal of 19 percent. Also in FY 1999, to strengthen medical cost oversight, the program established a quality assurance program to review physicians’ bills for duplication and other improper practices. Office of Federal Contract Compliance ProgramsBackgroundThe Office of Federal Contract Compliance Programs enforces regulations requiring Federal contractors to take affirmative action and eliminate discrimination from the work place. Based on findings of discrimination during compliance evaluations and complaint investigations, the program seeks to obtain remedies for victims. These requirements are an integral part of the Federal procurement process and are based on the principle that employment opportunities generated by Federal dollars should be available on an equitable basis for all Americans. The requirements are made a part of nearly all contracts with the Federal government. OFCCP’s basic enforcement tools are compliance evaluations and complaint investigations. When OFCCP identifies a substantive violation and if informal means of resolution fail, sanctions and other remedies are sought through appropriate administrative or judicial procedures. OFCCP provides technical assistance and compliance assistance to employers and constituency groups on non-discriminatory employment practices; provides technical assistance in the formulation of affirmative action plans and compliance with regulations; and publicizes and honors best practices in affirmative action and nondiscrimination in employment. FY 1999 Highlights -- Office of Federal Contract Compliance Programs OFCCP made substantial progress toward the transformation of the program from one focused on individual discrimination to a program whose mission is to address systemic barriers to equal employment opportunity. Regulatory reform and the implementation of the tiered review process reduced contractor burden and streamlined OFCCP requirements. In FY 1999, the program planned to conduct 5,820 compliance evaluations and reviews (including compliance checks) and conducted 5,875 -- or 100.9 percent of the total (2,588 supply and service reviews; 2,042 compliance checks and 1,245 construction reviews.) As projected, the OFCCP also completed 40 (100 percent of the goal) corporate management or “glass ceiling” reviews. These reviews focus on corporate policies and practices, particularly those related to mid and upper level management positions. The program also closed 313 complaints of discrimination. OFCCP also maintained its inventory of 30 construction mega-projects. Construction mega-projects are federally funded or federally assisted construction projects which last two years or more, have a significant economic impact on a community, and offer significant employment opportunities through the duration of the project. According to current information, the utilization of minorities overall on mega-projects met or exceeded the goals set forth in the regulations, and ranged from 2 percent to 68 percent. For women, the utilization was lower, ranging from 0.1 percent to 12.4 percent but in many instances exceeded the nationwide average of under 3 percent. OFCCP’s FY 1999 productivity is only one indicator of its success, however. In this year, the program obtained $41,627,834 in monetary benefits for victims of discrimination – up from $35,491,014 in FY 1998. This is the highest amount in the history of the program. Of that amount, $13,935,431 constituted backpay and benefited 8,493 employees. Thus, while OFCCP continued to maintain its number of compliance actions, its efforts to identify and remedy discrimination have continued to increase. In comparing the performance of the OFCCP in the 1980s, for example, 1985, the program conducted 5,217 compliance reviews, but obtained only $7,585,000 in financial agreements, of which only $1,884,000 consisted of back pay. Thus as a result of the increased emphasis on identifying and eliminating patterns and practices of discrimination versus individual instances of discrimination, the productivity of the program has increased – and victims of discrimination have benefited. In many respects, the most important aspect of OFCCP’s performance in FY 1999 was the effort to implement the Secretary’s Equal Pay Initiative and to continue to identify and remedy problems related to sex and race-based wage discrimination. The program settled several prominent cases that underscore the continuing success in the area of pay discrimination. OFCCP also obtained prominent settlements in cases involving women seeking nontraditional jobs. One quarter of the financial settlements obtained in 1999 (approximately $10 million) were derived from “equal pay” cases. Office of Management, Administration and PlanningBackgroundThe Office of Management, Administration and Planning (OMAP) directs the various units that support the Employment Standards Administration’s operating programs and helps assure effective management of these programs. Under the leadership and support provided by OMAP, ESA will continue to support the Secretary’s goals for a secure workforce and quality workplaces. OMAP exercises internal management control systems to assure effective resource management, and prevent waste, fraud, and abuse; manages the information technology infrastructure; targets in-house training and career development initiatives; maintains integrity and cost control efforts related to administrative areas; and continues to ensure prompt injury claim actions and the rehabilitation and reemployment of injured ESA workers. OMAP provides effective program direction and high quality support services (such as personnel, financial, information technology and facilities management) to the agency’s operating programs to promote their ability to provide credible, effective labor standards education, enforcement, and benefit delivery services. As part of the ESA strategic planning process, OMAP is responsible for performance goals in the areas of financial management, information technology, and human resources. FY 1999 Highlights – Office of Management, Administration, and Planning ESA focused on assisting the Department to obtain a clean audit opinion in the Department’s Annual Financial Statements Audit. The Department successfully achieved a clean audit opinion for the third consecutive year. OMAP’s participation in that effort ensured that ESA’s financial systems were free from material non-conformance with applicable laws, regulations or accounting policy and procedure standards. This was accomplished by working collaboratively with the Office of the Chief Financial Officer and the Office of the Inspector General (OIG) to implement new standards and requirements, as well as a preventive strategy to correct both internal control problems and compliance issues with financial laws and regulations identified in the audits. By correcting problems as they are identified in each annual audit, our financial management can be continually enhanced. The Federal Financial Management Improvement Act (FFMIA) requires federal agencies to identify and report to Congress on weaknesses in their financial systems. The OIG has identified some compliance issues relating to ESA financial systems during their annual audit. Two of ESA’s systems were determined not to be in substantial compliance with FFMIA in that the systems did not process financial information effectively and efficiently and did not provide complete, timely, reliable and consistent information. Specific corrective action plans have been developed to bring these systems into compliance by the end of FY 2000. A management control process has been established within ESA to address and manage corrective actions relating to material and non-material weaknesses identified. These steps will improve ESA’s compliance with financial laws and regulations and enhance financial stewardship within ESA. During FY 1999, the Department developed a new, enhanced Strategic Information Technology Plan covering FY 2000 – FY 2004 as required by the Information Technology Management Reform Act (ITMRA). The Plan supports DOL business and performance planning needs and establishes a framework to align information technology resources with the Department’s missions, goals, and objectives. In addition to defining IT strategic focus areas and implementation strategies, the Plan identifies the need for complete, accurate and timely management information at the Program level needed to support the Department’s implementation of GPRA and related program measurement and evaluation activities. ESA participated in a Department-wide effort to develop the Department’s IT Plan and used that participation to assure consistency with ESA’s GPRA and IT planning. Using elaws, an interactive Departmental Internet system that provides advice and information on specific laws or regulations based on a user’s particular situation, ESA added access to the Fair Labor Standards Act information to help employers and employees understand FLSA requirements. ESA also expanded the ESA Internet site to include a section on the Freedom of Information Act. In addition to several major program-related critical application upgrades, ESA finalized plans for implementation of the architecture necessary to support expanded web-based Agency applications and expansion of the ESA Wide Area Network. In FY 1997, the Employment Standards Administration developed its strategy for ensuring ESA IT and non-IT readiness for the Year 2000. Comprehensive assessments of ESA’s IT and non-IT infrastructures were made and action taken to ensure ESA’s readiness for the turn of the century. The Government Accounting Office’s (GAO) program and project management model (awareness, assessment, renovation, validation, and implementation) was adopted for repairing and replacing the agency’s mission critical systems. All ESA mission critical systems were Year 2000 compliant within the timeframe specified by OMB. The Department’s independent verification and validation vendor rated ESA systems low for experiencing potential Year 2000 related system failure based on their review of these systems. ESA successfully achieved Year 2000 compliance. A key focus of ESA’s human resource strategy is to support the major Program Offices as they work to achieve their Strategic, Outcome and Performance Goals. Technology and new systems enhance the capability of the Program Offices to more effectively serve American employers and workers. The Division of Human Resources Management (DHRM) has mounted a two-pronged effort to continually upgrade the skills of its Training and Development staff in the face of the movement of ESA’s employees into a fast evolving, performance-centered, and often computer-based work world. DHRM has selected an authoring application on which it has begun to build computer-based training that can be delivered via the Intranet and Internet. The Division is also equipping training staff with substantial skills in building computer-based learning sequences and has produced several computer-based training modules for use by ESA operating units. DHRM created an intra-net site, “Getting Training in ESA,” and is continually posting a variety of training-related information to the site. In addition, DHRM completed building and pilot tested the computer-based training module introducing Federal Employee Compensation Act (FECA) claims examiners to the use of imaging applications. CROSS-CUTTING ACTIVITIESThe accomplishment of ESA’s performance goals require coordination and integration of programs and activities not only within ESA but also among other DOL, Federal government, and State and local government agencies. ESA’s coordinated efforts are centered on the Departmental Strategic Goal 2: A Secure Workforce, and Strategic Goal 3: Quality Workplaces. In accomplishing these Departmental goals ESA will also accomplish its crosscutting strategic goals to: Create better workplaces by increasing employer and employee awareness of, commitment to, and involvement in assuring fair wages and equal employment opportunity, minimizing the impact of work-related injuries, and safeguarding union democracy; and Secure public confidence through excellence in the management and delivery of ESA’s programs and services. ESA places a high priority on ensuring that the agency operates its programs in a coordinated, efficient, and effective way. Our efforts in this sphere are key to accomplishing our goals and to supporting the complementary goals and strategies of our many partners. An important ESA objective is to ensure that cross-cutting efforts lead to program goals that are complementary, not redundant. This is accomplished through collaboration with other DOL agencies and helps to identify issues and problems that must be addressed. The collaboration leads to the development of mutual strategies for attaining goals and other appropriate measures that can be used to gauge program success. Because it is the Departmental Strategic and Outcome goals that all DOL Agencies have in common, this section is presented by the two DOL Strategic and three DOL Outcome goals supported by ESA’s four major Program Offices. DOL Strategic Goal 2 – A Secure Workforce Outcome goal: Increase compliance with worker protection laws To carry out its several enforcement responsibilities, ESA cooperates with the Department of Justice (DOJ) - Immigration and Naturalization Service (INS), Department of Defense (DOD), General Services Administration (GSA), Health and Human Services (HHS), United States Department of Agriculture (USDA), and others, as well as coordinates with other internal DOL agencies such as the Employment and Training Administration (ETA) and the Solicitor of Labor. Cooperative efforts include coordination between the Wage and Hour Division and ETA relating to migrant and seasonal labor issues, and programs designed to increase compliance in the “Salad Bowl” and poultry processing industries. ESA works with DOD and the GSA with respect to applicable wage determinations for government contracts. WHD works closely with ETA, USDA, and the states to explore the interaction of workplace laws and welfare reform. Wage and Hour is a key player on DOJ’s Worker Exploitation Task Force. To leverage its impact – both with respect to enforcement and the dissemination of information ultimately leading to increased compliance – Wage and Hour seeks to enter into partnerships with industry leaders, employers, employee associations and commercial consumers. For example, the Department has supported the work of the Fair Labor Association, the organization established by the Apparel Industry Partnership to oversee implementation of its Workplace Code of Conduct and monitoring principles. Subsequent to the discovery in 1998 of very young children working illegally in the onion harvest, four producers in the Texas Rio Grande Valley signed a compliance monitoring agreement with Wage and Hour committing to check for child labor compliance at least twice a day when crews are planting or harvesting; prescreen farm labor contractors before entering into contractual agreements; notify Wage and Hour immediately upon finding a child labor violation, and cooperate or take appropriate steps to remedy the violation; train employees and farm labor contractors about the child labor requirements before each planting or harvesting season; and, report semiannually to Wage and Hour the results of their monitoring activities. Investigations during the area’s 1999 harvest found no children illegally employed. Now compliance agreements with producers, processors and packers are routinely encouraged. In 1999, Sears, Roebuck and Company entered into a corporate-wide program to help ensure compliance by conducting self-audits, enhance training for store managers and young workers and provide informational material to the parents of all young workers under 18 years of age. At the end of the year, Toys R’ Us entered into a similar agreement. These agreements are being used as models for other corporations, especially in industries such as retail where youth are frequently employed. In addition to partnering with K-Mart, the American Academy of Pediatrics, the National Consumers League and the National Institute for Occupational Safety and Health to promote its annual “Work Safe This Summer” educational campaign, in 1999 the Department added new partners – The National Association of Theater Owners, National Recreation and Parks Association, and the International Association of Amusement Parks and Recreation. The Wage and Hour Division is the lead agency in the Department, coordinating among virtually all agencies in the Department, the Secretary’s domestic child labor initiative, “Safe Work/Safe Kids.” This is a multi-prong strategy of enforcement, education, and partnerships to ensure that young people have opportunities for legal, constructive early work experience which is safe and enhances, rather than competes with, their education. Two performance goals were added to the ESA FY 2000 Annual Performance Plan to reflect this Secretarial priority. In accordance with the Small Business Regulatory Enforcement Fairness Act (SBREFA), the Office of Small Business Programs (OSBP) provides one-stop service as a clearinghouse for ESA WHD/OFCCP compliance assistance information, inquiries and comments on enforcement activity. OSBP serves a cross-cutting function by coordinating with ESA and other DOL enforcement agencies on customer/stakeholder feedback to resolve problems and improve agency operations. ESA’s enforcement programs maintain close ties and share information with other law enforcement agencies. In Labor-Management Reporting and Disclosure Act (LMRDA) criminal enforcement matters, cooperation may extend, as appropriate, to participation in joint investigations with other federal agencies, including the Federal Bureau of Investigation (FBI) and Internal Revenue Service (IRS) as well as other DOL agencies. Each initiative to coordinate with other agencies is designed to increase compliance with worker protection laws leveraging resources, reducing overlapping activity, and utilizing the strengths of each entity. Outcome goal: Protect worker benefitsESA’s Federal Employees' Compensation Act (FECA) program involves every federal agency in the filing and management of injury compensation claims. The FECA program coordinates with the Office of Personnel Management on matters of benefit elections, and in some specialized claims, with state and local police agencies on matters of entitlement and benefits. Federal agencies which undertake special initiatives work closely with FECA program offices at the national and regional levels to evaluate best practices. Other efforts also improve communication and cooperation. Through the Agency Query System (AQS), the Department provides secure, on-line information to enable agencies to provide better service to their injured employees and assist in FECA claims processing and case management. In new injury cases, the Department assigns nurses to coordinate among injured workers, agencies, and medical providers to resolve issues and facilitate recovery and return to work. ESA’s OWCP is working in partnership with all federal agencies in two key performance areas: the improvement in the timeliness of injury claims submissions – in part through expansion of electronic links for claims submission – and an increase in re-employment opportunities. ESA has been using, and plans to expand, its Internet site to post agency performance results related to these activities. On July 2, 1999, the President signed the Federal Worker 2000 Initiative, which requires Federal agencies to reduce new workplace accident/illness rates, speed the timeliness of reporting new injuries to the Department of Labor, and reduce lost production days rates. In FY 2000, ESA/OWCP will work with federal agencies to meet these goals by intervening in lost time cases, providing case management, and tracking disability time lost during the Continuation of Pay period immediately following an injury. ESA/OWCP will work in tandem with the Department’s Occupational Safety and Health Administration (OSHA) to help agencies reduce accidents/illnesses as well as speed return to work. The Part B and Part C Black Lung programs underwent partial consolidation within ESA. Under a Memorandum of Agreement with the Social Security Administration (SSA), ESA administers a major part of the “Part B” program for the SSA as a means of reducing duplication and confusion for the clientele they serve. DOL Strategic Goal 3 – Quality Workplaces Outcome goal: Foster equal opportunity workplaces The Office of Federal Contract Compliance Programs (OFCCP) supports the Departmental commitment to internal and external cooperative efforts. In FY 1999, OFCCP hosted a conference with the Solicitor of Labor to share information about issues affecting the program’s enforcement posture. In addition, OFCCP is a key player on a team assembled by the Secretary to develop innovative, cooperative programs and policies to foster and implement the Administration and Secretary’s Equal Pay initiative. The interagency team unites OFCCP with the Women’s Bureau, the Employment and Training Administration, the Mine Safety and Health Administration, the Office of Small Business Programs, the Pension and Welfare Benefits Administration, and other agencies in this effort. OFCCP’s ongoing use of the Memorandum of Understanding (MOU) is another reflection of the Departmental commitment to formalize complementary efforts between Federal agencies. For example, an internal MOU with the ESA Wage and Hour Division provides for information exchange and effective enforcement of the Family and Medical Leave Act. An MOU with the DOL Veterans’ Employment and Training Service allows for coordinated public outreach efforts and information sharing regarding covered veterans. Outside the Department, OFCCP’s MOU with the Department of Justice’s (DOJ) Office of Special Counsel provides for referral of complaints involving national origin discrimination, information sharing, and coordinated public outreach efforts. An MOU with DOJ’s Immigration and Naturalization Service (INS) allows for prompt referral to INS of all suspected violations against employment of unauthorized workers. OFCCP’s MOU with the Equal Employment Opportunity Commission (EEOC) provides procedures for the coordinated collection, sharing, and analysis of data regarding individual or class complaints of discrimination on the basis of race, gender, national origin, or disability status. OFCCP coordinated and finalized another MOU with EEOC and initiated other MOUs with the Department of Transportation and the General Services Administration. Also, OFCCP participates in meetings convened by the White House and the Civil Rights Working Group to discuss implementation of OMB guidance on how race and ethnicity data are to be submitted for the 2000 Census. OFCCP has been tracking this issue and examining the impact on its enforcement efforts. In addition, OFCCP is an active member of the executive board of the President’s Committee on the Employment of People with Disabilities. The Department and ESA are proud to honor organizations for their exemplary affirmative action efforts to ensure that all individuals have an equal opportunity for employment. During the month of September each year, the Secretary presents awards at ceremonies specifically designed to honor the recipients of the Exemplary Voluntary Effort (EVE) awards, the Exemplary Public Interest Contribution (EPIC) awards, and the OPPORTUNITY 2000 Awards. The ceremonies also provide the honorees an opportunity to showcase the activities for which these employers and interest groups are being honored. Since 1982, local Industry Liaison Groups (ILGs) have emerged as an effective way of strengthening relationships between federal contractors and the OFCCP. Local ILGs offer a forum that encourages open communication between the two groups as they work together towards equality in the workplace. CONCLUSIONESA is helping to protect worker’s rights to lawful wages and benefits, and helping employers comply with required workplace standards. Through fair enforcement of labor laws and prompt adjudication of claims, with compliance assistance that includes, education, outreach, partnership and recognition, employees of the Employment Standards Administration, more than 80 percent of whom work in field offices around the country, strive to eliminate unfair and unsatisfactory workplace practices and conditions. In this first year of performance under the Government Performance and Results Act (GPRA), ESA met nearly two-thirds of its FY 1999 Performance Goals. As the strategic planning process in ESA continues to evolve, we continue to improve our ability to develop and refine outcome-based goals and measures which require us to stretch in our efforts to meet them. Our performance results in FY 1999 informed our planning and resulted in several revised strategies and goals for FY 2000. While challenges remain, we have come a long way. We will continue to work with the Department to be good stewards of the American taxpayers’ dollar and to refine and improve our performance each year. And, we will continue to focus on achieving our vision: to achieve universally applied fair practices in the American workplace. |
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