8H Conciliation Agreements
The CO uses CAs to resolve material or substantive violations of any of the three laws OFCCP enforces. Figure F-6, Standard Text for CA, provides sample CA language.413 Figure F-7414 provides sample language for notice documents that would be attached to a CA remedying compensation discrimination and Figure F-8415 provides sample language for notice documents that would be attached to a CA for hiring or other discrimination based on a contractor’s selection procedures.
413. See Figure F-6, Standard Text for Conciliation Agreement.
414. See Figure F-7, Model Attachments for Compensation Conciliation Agreement.
415. See Figure F-8, Model Conciliation Agreement Attachments for Hiring and Other Issues.
The CO must use a CA whenever he or she properly issues an SCN or ASCN, or in the following circumstances:
1. If the CO finds in a compliance evaluation or complaint investigation that the contractor discriminated, either on an individual or systemic basis.
2. If a supply and service contractor did not submit an AAP as required by one or more of the three laws OFCCP enforces.
3. If a supply and service contractor’s Itemized Listing data, provided based on a desk audit request, or the AAP is not acceptable.
4. If any contractor failed to demonstrate good faith effort, including situations where a supply and service contractor deviates substantially from its Executive Order 11246 AAP,416 or materially violates its Section 503 and/or VEVRAA obligations.417 It also includes situations where a federal construction contractor materially violates its Section 503 or VEVRAA obligations, or where a construction contractor fails to adequately document its implementation of its Executive Order 11246 affirmative action obligations and refuses to remedy those violations. 418
416. See 41 CFR 60-2.2(c).
417. See 41 CFR 60-741.62 and 60-300.62.
418. See FCCM Chapter 3– Construction Industry Compliance Program.
All CAs use the format described in this section. It consists of a section captioned “Heading” followed by nine parts:
- Part I contains the Preliminary Statement
- Part II contains the General Terms and Conditions
- Part III contains the Violations
- Part IV contains the Financial Remedy
- Part V contains the Additional Individual Relief
- Part VI contains the Modifications of Employment Practices and Other Nonmonetary Relief
- Part VII contains the Notice Process
- Part VIII contains the OFCCP Monitoring Period
- Part IX contains the Signatures
CAs may be modified under certain circumstances and with certain prior approvals. OFCCP uses a standard template for CAs that is available to all COs on the agency’s intranet.
CAs shall have termination dates based on the minimum time necessary for contractors to correct all violations and for OFCCP to verify such correction.
The period provided in a CA should be sufficient to ensure that the contractor can accomplish all of the corrective actions. While full correction of all violations should be possible within one or two years under most CAs, some remedies may require more time. For example, if the CA requires make-whole relief for discrimination and that relief includes extending job offers as openings occur, the CA termination date could be extended until the contractor has made all the job offers and has paid all the back pay or front pay, or both.
The following people must sign and date a CA:
- The contractor’s top establishment official, however, if the establishment is a corporate or intermediate headquarters, the contractor’s top official’s designee may sign; and any additional contractor officials that the contractor wishes;
- The union local’s top official and any additional union officials the union wishes, if the union is a party to the CA;
- The CO who conducted or led the compliance evaluation or complaint investigation;
- The Assistant District Director, if applicable;
- The District Director; and
- The Regional Director, unless the authority is otherwise delegated.
a. Delegation of Regional Director’s Authority. Regional Directors have the authority to sign all CAs. However, a Regional Director may delegate signature authority to a District Director or other designee for CAs involving only affirmative action issues, individual discrimination issues, systemic discrimination claims in which the class does not exceed ten people and back pay does not exceed $25,000, or a combination of these issues.
b. Notice of Review Completion. After the required signatures are obtained on the CA, the CO will issue the contractor a “Notice of Review Completion – Major Violations Resolved in a Conciliation Agreement.” If the CO issued an SCN, the CO should use sample form Letter L-40. If the CO did not issue an SCN, the CO should use Letter L-41.