Federal Contractors and Executive Order 11246

On the other hand, the data could indicate to the government that a significant shortfall exists in the hiring of a particular race or gender, and that the shortfall cannot be explained merely by chance. Such a case could result in significant financial and equitable remedies that go beyond simply paying a fine. Thus, the manner in which the underlying employment data are gathered and reported is critical and directly related to what conclusions the government reaches about a company's hiring, promotion, and discharge practices.

In the wake of these new changes, this article offers suggestions of best practices relating to one of the most noteworthy developments for EO 11246 compliance: the 'Internet Applicant' rule, which became effective on Feb. 6, 2006. This rule impacts, among other things, how a covered employer calculates applicants for purposes of creating the data that are submitted to the government. Although the new rule has been effective since last year, the Office of Federal Contract Compliance Programs ('OFCCP'), which enforces the rule, has emphasized that applicant tracking and record retention issues will be a focus of OFCCP compliance efforts in 2007 audits. The significance of this new rule is widespread, but in general may dramatically affect how covered employers who use the Internet (or 'related data technologies') to obtain resumes or applications have to account for the process, and may significantly alter an employer's statistical employment-related data. To ensure compliance, covered employers should understand the nuances of the rule and undertake compliance efforts, if they have not already.