A few years back, while conducting an audit, a company had a Big Issue: a Standard Deviation in Hiring.
One piece of advice that I give the clients that I work with is make sure that your back is covered. When I was with OFCCP I was auditing a national company in North GA, I discovered a Standard Deviation of 2.7 in hiring for minorities. The Supreme Court has determined that a SD over 2% does not happen randomly and requires an in-depth investigation. Preliminary calculations, resulted in a $ 600,000 financial remedy for this company! The company contracted a respected law firm. After 5 months of going over the Applicant Flow Log with the attorney and the HR representative for the company the SD could not be notably lowered. As an Investigator I was trained to look for every contributing factor. I noticed that in the Job Group in question, the Availability was 22% for minorities and the representation for minorities in that JG was 38% for minorities. To make it perfectly clear the Census Data said the company ‘ought’ to have 22% minorities in the Job Group with the Standard Deviation AND the company had a 38% representation of minorities. The company had more representation than required.
I realized early on that this was not looking like a litigation worthy case. I asked the an attorney in the Solicitor’s Office for US DOL. She agreed with a SD under 3% and the JG with more minorities than expected by the Census Data, would not do well before an administrative law judge. I was surprised that the outside law firm’s attorney did not notice. Attorneys are very well educated, trained with great expertise BUT an OFCCP auditor has seen so much, and has the wisdom of accumulated experience from peers. Personally, our team is excellent in trouble shooting. We have over 100 years’ experience.
The case was closed with a few record keeping violations but no financial remedy. As former compliance officers, we are always looking out for my client. We have our client’s back. ALWAYS.
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