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Fred Satterwhite

Fred Satterwhite, M.S., M.T.S

Director of Software
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Fred Satterwhite is the Director of Software at DCI Consulting Group in Washington, DC, where he leads DCI’s software development and support team of professionals who create innovative solutions to meet customers’ EEO/AA compliance needs. Fred develops and manages the long-term vision for DCI’s software portfolio, including application development, training, implementation, maintenance, and internal and external customer support.

Fred has worked more than 19 years in the fields of industrial/organizational psychology, employment discrimination analysis, and software development and support. He has provided guidance to hundreds of clients regarding employment discrimination statutes and regulations, equal employment reporting guidelines, selection procedures, affirmative action planning, pay equity, and related statistical analyses. Fred has served as the lead consultant on projects for several Fortune 500 companies, and has advised clients during hundreds of OFCCP compliance reviews. He also has developed and implemented selection and performance appraisal systems for multiple IT departments. Previously, Fred has managed teams and projects in the areas of software implementation and support, sales, and AAP/analytics.

Fred holds a Master of Science degree in Industrial/Organizational Psychology from Radford University, a Master of Theological Studies degree from Midwestern Baptist Theological Seminary, and a Bachelor of Arts degree in Psychology from Auburn University. He holds CompTIA® A+, CompTIA Cloud EssentialsTM, and CompTIA IT FundamentalsTM certifications.

Fred Satterwhite ’s Recent Posts

Since the release of OFCCP’s FY 2017 budget justification on February 8, 2016, the federal contractor community has been buzzing, as OFCCP’s requests shed light on the agency’s enforcement priorities for the near future. Given the current political landscape, it is very unlikely that the budget increase desired by OFCCP will be granted by Congress. However, insights into OFCCP’s strategy and the potential implications still can be gleaned from the report.

First, the unusual exchange between the House and Senate Appropriations Committee and OFCCP is fascinating. Essentially, Congress alleged that OFCCP has been eschewing anecdotal evidence and using debarment threats to induce contractors’ compliance. OFCCP refutes those allegations, stating that statistical evidence alone will not result in enforcement procedures against a contractor, and that violation notices will be issued “only where there is an ample evidentiary record” of discrimination.

Hiring and pay discrimination will remain OFCCP’s main focus for FY2017. OFCCP has eliminated numerical targets for completing reviews during the year, instead setting a goal to ensure that 95% of their cases will not have any major investigatory deficiencies. Although enforcement on construction projects is highlighted as a priority in FY2017, updating the construction AAP regulations is notably absent. This confirms that OFCCP will not publish a new rulemaking notice for those regulations before the end of the current administration’s term.

The most interesting revelation is OFCCP’s plan to open Skilled Regional Centers in San Francisco and New York to provide the Pacific and Northeast regions, respectively, with highly trained compliance officers who are able to tackle more complex compliance reviews in specific industries. One of OFCCP’s stated reasons for this move is saving costs by closing some “brick-and-mortar field offices.” Along with the overall reduction in staff during the last few years, this plan could create morale challenges within the agency. The timing of the plan is curious: instituting a fundamental organizational transformation amid the final months of a presidential election year only gives the current administration 3-4 months to enact change. Whether intentional or not, this plan could leave numerous organizational challenges for the next administration to inherit in 2017.

By Fred Satterwhite, Principal Consultant and Jeff Henderson, Associate Consultant at DCI Consulting Group

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The new OFCCP scheduling letter and itemized listing have officially been released at reginfo.gov, and are effective immediately (starting October 1, 2014).  As previously mentioned by DCI, there were substantial changes to the scheduling letter related to the new 503/VEVRAA requirements, although these proposed changes to the scheduling letter were NOT included in the 2011 NPRM, and there was no public comment period on specific changes to incorporate new 503/VEVRAA requirements.  The OFCCP labeled these changes as “non-substantial” when corresponding with the OMB.

Specific changes related to additional information being requested under 503 include:

  • Results of the evaluation of the effectiveness of outreach and recruitment efforts for qualified individuals with disabilities;
  • Documentation of all actions taken to comply with audit and reporting systems;
  • Documentation of the computations or comparisons described in 741.44(k) analytics (e.g., jobs openings, jobs filled, number of disabled applicants, etc.) for the AAP year, including updated data if the contractor receives the scheduling letter 6 or more months into their AAP year;
  • The utilization analysis evaluating the representation of individuals with disabilities in the contractor’s workforce; including an updated analysis if the contractor is at least 6 months into their plan year during the scheduling letter date.

Specific changes related to additional information being requested under VEVRAA include:

  • Results of the evaluation of the effectiveness of outreach and recruitment efforts for qualified protected veterans;
  • Documentation of all actions taken to comply with audit and reporting systems;
  • Documentation of the computations or comparisons described in 300.44(k) analytics (e.g., jobs openings, jobs filled, number of protected veteran applicants, etc.) for the AAP year, including updated data if the contractor receives the scheduling letter 6 or more months into their AAP year;
  • Documentation of the hiring benchmark adopted, including an updated benchmark if the contractor is at least 6 months into their plan year during the scheduling letter date.

Specific changes related to both 503/VEVRAA include:

  • Copies of reasonable accommodations policies and requests (Item 20);
  • Assessment of personnel processes, including the date the assessment was performed, actions taken, and the date of the next assessment (Item 21);
  • Assessment of mental and physical qualifications, including the date of the assessment, actions taken as a result, and the date of the next assessment (Item 22).

Specific changes related to the submission of personnel activity include:

  • Submitting applicant flow, hires, promotions, and terminations data by racial subgroup, but the letter groups Pacific Islanders with Asians (not consistent with EEO-1 filings, but consistent with the OFCCP regulations in the Workforce Analysis).  There is also no “two or more races” option.  It will be interesting to see if the OFCCP accepts the additional two race categories to align with the data collected by contractors for EEO-1 filing purposes;
  • Including the contractor’s definition of “promotion”;
  • No pools being defined for promotions and terminations, as outlined in the 2011 NPRM;
  • The inclusion of “unknown” race and gender information for applicants in the submission;
  • The clear option to submit data by job group OR job title.

Specific changes related to the submission of compensation data include:

  • The requested data is for all employees including per diems, temporary employees, full-time, part-time, etc. (please note, this definition of employee is different than the EEO-1 report definition);
  • Compensation data provided in the disaggregate form (employee level), including job title, job group, EEO-1 category information, race, gender, and hire date of each employee;
  • Compensation to include base salary, bonus, adjustments, overtime, commission pay, etc. identified in separate columns of data for each employee.

 

Please note: Although the scheduling letter is effective as of October 1, 2014, the OFCCP has indicated they will NOT send scheduling letters to supply and service contractors between October 1-October 15, 2014.  The OFCCP has stated that contractors should use the 15 day period to review and understand the requirements outlined in the scheduling letter.

Stay tuned for more in-depth analysis on the new scheduling letter!

By: Joanna Colosimo, Senior Consultant and Fred Satterwhite, Principal Consultant, DCI Consulting Group 

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OFCCP recently posted (http://www.dol.gov/ofccp/regs/compliance/faqs/503_faq.htm and http://www.dol.gov/ofccp/regs/compliance/faqs/VEVRAA_faq.htm) additional guidance for contractors regarding the implementation of new final rules describing obligations for affirmative action programs covering individuals with a disability and protected veterans. While this guidance sought to clarify new requirements under the “Data Collection Analysis” sections (41 CFR 60-300.44k and 60-741.44k) of the final rules, it has also introduced new questions about how contractors must compile information to comply.

The “Data Collection Analysis” sections require contractors to document the “total number of job openings and total number of jobs filled,” as well as the numbers of applicants and hires. The new regulations do not differentiate between job openings and requisitions, which has created some confusion among contractors. The updated FAQs state that the total number of job openings refers to the actual number of individual positions that are open. As an example, if a contractor has five positions to fill and only hires four applicants, they would report a total of “5 job openings” and “4 jobs filled.” In the updated FAQs, OFCCP defines jobs filled as “all jobs the company filled by any means, be it through a competitive process or non-competitively, (e.g., through reassignment or merit promotion.)” The contractor will be required to count both new hires and those that were placed in new positions via promotions, transfers and reassignments. There’s one problem: contractors do not currently report transfers and reassignments under their E.O. 11246 AAPs. Small contractors may be able to track this information easily, but large contractors will face a tremendous challenge as they may incur extensive costs in time, money, and resources updating their HRIS systems to track these personnel movements before the regulatory effective date. Finally, contractors will need to allocate additional HR resources to double-check data from HRIS systems to ensure reporting is accurate.

The framework that OFCCP has used in the FAQs also creates some inconsistency in definitions of “openings.” For example, VEVRAA FAQ #1 states: “The total number of job openings refers to the number of individual positions advertised as open in a job vacancy announcement or requisition” (emphasis added). The concept of an advertised job vacancy announcement seemingly comports with the VEVRAA requirement in 41 CFR 60-300.5 to list all employment openings with the appropriate employment service delivery system. However, 60-300.5 also further defines “all employment openings” with the following statements:

i. All employment openings includes all positions except executive and senior management, those positions that will be filled from within the contractor’s organization, and positions lasting three days or less…

iii. Positions that will be filled from within the contractor’s organization means employment openings for which no consideration will be given to persons outside the contractor’s organization (including any affiliates, subsidiaries, and parent companies) and includes any openings which the contractor proposes to fill from regularly established “recall” lists.

In a scenario where a contractor has a position that is filled from within the organization through a non-competitive reassignment, the combination of the regulatory definition and the FAQ guidance would produce the following totals for the “Data Collection Analysis” document:

Number of job openings = 0

Number of jobs filled = 1

Number of applicants hired = 0

Extending the logic and timeframe to a period of up to three years (the record maintenance period required by 60-300.44k), a contractor could conceivably end up with a “Data Collection Analysis” document where the totals appear as follows:

Number of job openings < Number of applicants hired < Number of jobs filled

Given the purpose for the data collection analysis that is stated in the final rule— to evaluate the effectiveness of outreach and recruitment efforts in identifying and recruiting qualified protected veterans (cf. 60-300.44[f][3])—the unanswered question (for both contractors and OFCCP) is whether the numbers from such an evaluation would be interpretable and useful.

OFCCP also provided guidance regarding the EEO tagline contractors will use when announcing a vacancy. The agency stated that contractors may refer to those protected by Section 503 or VEVRAA by abbreviation, but using abbreviations such as “D” or “V” is not adequate. The FAQ instructs contractors that at a minimum they can use “disability” and “vet” so the tagline can be clearly understood by jobseekers. However, these abbreviations may create further confusion. Under section 503 , an “individual with a disability” is defined as a person who (1) has a physical or mental impairment that substantially limits one or more major life activities, (2) has a record of such impairment, or (3) is regarded as having such impairment. Under VEVRAA, protected veterans are defined as (1) disabled veterans, (2) recently separated veterans, (3) active duty wartime or campaign badge veterans and (4) Armed Forces service medal veterans. Obviously these definitions are complex. If contractors use the suggested abbreviations, they may have applicants incorrectly identify as veterans and individuals with disabilities.

by Yesenia Avila, M.P.S., Analyst, and Fred Satterwhite, M.S., Principal Consultant, DCI Consulting Group

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In our last update on the proposed Protected Veterans and Individuals with Disabilities regulations, we discussed the delayed publication of the final rules as compared to OFCCP’s planned release date of April 2013. The recently published Spring 2013 Unified Agenda of Federal Regulatory and Deregulatory Actions suggests that the target date for publication of the Protected Veterans and Individuals with Disabilities final rules in July of 2013. If that was true, the promulgation of the regulations would be imminent. However, it isn’t.

A realistic assessment of the federal rulemaking process suggests that this target date—much like previous target dates of April 2013 and July 2012—is hardly set in stone. Final rules such as these require final review and approval by the Office of Management and Budget’s Office of Information and Regulatory Affairs prior to publication in the Federal Register. Executive Order 12866 requires this review to be completed within 90 days, but the review period may be extended by either the OMB Director or the head of the rulemaking agency (in this case, OFCCP). While no minimum review period is required, the practical requirements for reviewing extensive regulatory items (such as these two final rules) mean the review period typically takes weeks, if not months. As of July 9, OMB has not received the final rules from OFCCP, so it may be assumed that publication of these regulations is highly unlikely to occur in July.

Ultimately, when the rules are approved in their final form, they will be published in the Federal Register and may be implemented on whatever timeframe the agency determines. At that time, DCI will be offering guidance for the contractor community on how to implement the required compliance changes.

Relatedly, the EEOC is also planning to revise their rules on disability discrimination, as noted in the agenda. Due to the Memorandum of Understanding (MOU) formalizing information-sharing between the EEOC and OFCCP, it is reasonable to assume that there will be some impact on federal contractors. This impact will become clearer after the target NPRM publication date in October 2013.

The agenda also included an update on an NPRM from the Department of Labor’s Assistant Secretary for Veterans’ Employment and Training that would propose: a) rescinding the part 61-250 regulations which establish the VETS-100 reporting obligation; and b) revising the part 61-300 regulations, which establish the VETS-100A reporting obligation, to require contractors to report the number of employees and new hires that are covered veterans. The target date for publication of the NPRM is now August 2013. This means that the revised reporting obligations will not impact the 2013 VETS-100/VETS-100A filing cycle, but might be implemented prior to the 2014 filing cycle.

In the meantime, check here for the latest on relevant regulatory updates and proposed changes.

by Jana Garman, M.A., Associate Consultant and Fred Satterwhite, M.S., Principal Consultant, DCI Consulting Group

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In an announcement released on March 14th, the U.S. Census Bureau discussed the unemployment rate of workers with disabilities based on the new Disability Employment Tabulation. The statistics show that individuals with disabilities only account for 6% of the labor force, with more than 50% of disabled workers limited to jobs in four general occupation groups: service workers (18.2%); administrative support (15.1%); sales workers (10.4%); and management, business and finance (8.9%).

Within these job groups, the most common occupations are: janitors and building cleaners; drivers/sales workers and truck drivers; cashiers; retail salespeople; dishwashers; refuse and recyclable collectors; and personal care aides. More than half of the workers with disabilities were found to earn about 75% of what equally situated workers without disabilities would earn.

The Census Bureau will release the data in its entirety by the end of April. DCI will provide further information about the Disability Employment Tabulation in future posts.

by Margaret Lentz and Fred Satterwhite, DCI Consulting Group

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OFCCP recently mailed its latest round of “courtesy” notices- the Corporate Scheduling Announcement Letter- to federal contractor establishments around the country. The form letters, dated March 27, 2013 and generically addressed to the “Human Resources Director” at the contractor’s address, notify the contractor that the establishment has been chosen for possible scheduling of a supply and service compliance evaluation during the current OFCCP scheduling cycle.

Unlike previous years, OFCCP is not sending CSAL notices to a corporation’s headquarters, but rather directly to the establishment on the scheduling list. Contractors may confirm whether an establishment was mailed a CSAL by faxing a written request on company letterhead to OFCCP’s Division of Program Operations at 202-693-1305.

DCI will provide more information about the CSALs soon.

by Fred Satterwhite, Principal Consultant, DCI Consulting Group

 

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by Fred Satterwhite, Principal Consultant, DCI Consulting Group

OFCCP’s new Functional Affirmative Action Program (FAAP) approval process- introduced with much fanfare by the agency in June, 2011- was approved by the Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA) on December 11, 2012. The information collection request was submitted to OIRA on October 11, 2012.

OFCCP had to put the official implementation of the new FAAP program  on hold earlier this year because the required submission of information by a contractor during the early stages of the application for a FAAP agreement under the new program constituted an information collection request (ICR) under the Paperwork Reduction Act. Any ICR intended to apply to 10 or more recipients (in this case, federal contractors) must be approved by OIRA prior to use.

The approved ICR may now be used by the agency, and does not need to be approved again by OIRA until the end of 2015.

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by Fred Satterwhite, Principal Consultant, DCI Consulting Group

The U.S. House of Representatives’ Committee on Education and the Workforce has scheduled a hearing entitled “Reviewing the Impact of the Office of Federal Contract Compliance Programs’ Regulatory and Enforcement Actions” for its Subcommittee on Health, Employment, Labor, and Pensions on April 18, 2012.

The hearing was scheduled to address the committee’s concerns regarding the potential effects of OFCCP’s proposed regulatory revisions on the federal contractor community. Congress has not held an oversight hearing regarding OFCCP since 1996.

The hearing is scheduled at 10:00 AM in room 2175 Rayburn H.O.B. A live webcast of the hearing will be available on the committee’s web site.

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by Fred Satterwhite, Principal Consultant, DCI Consulting Group

*** UPDATE: The ANPRM was published in the Federal Register on August 10, 2011. Public comments are due by October 11, 2011.

On August 3, 2011, the Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs (OIRA) completed its review of OFCCP’s advanced notice regarding a new compensation data collection tool that purports to identify contractors that are likely to violate Executive Order 11246.

The Advanced Notice of Proposed Rulemaking (ANPRM), titled “Non Discrimination in Compensation: Compensation Data Collection Tool,” was received by the OIRA on February 18, 2011. The ANPRM will be published in the Federal Register sometime in the next few weeks, with a public comment period to follow.

According to the Spring 2011 Unified Agenda and Regulatory Plan, this ANPRM “will seek input from stakeholders on issues relating to the scope, content, and format of the tool to ensure that it is an effective and efficient data collection instrument.” In addition to helping the agency identify contractors who may be violating the Executive Order with regard to compensation practices, OFCCP states that “the data collection tool may be used to conduct establishment-specific, contractor-wide, and industry-wide analyses” of compensation data.

The Spring 2011 agenda showed a target publication date of June, 2011 for the ANPRM, with publication of the subsequent Notice of Proposed Rulemaking (NPRM) expected in June, 2012.

Details about the compensation data collection tool have been eagerly awaited by the contractor community since last year. OFCCP gave a possible preview of the content of the ANPRM in the agency’s FY 2012 Congressional Budget Justification:

OFCCP plans to develop and implement a web-based compensation data collection tool that would enable the agency to identify indicators of pay disparity among federal contractors. As stated above, the agency is issuing an ANPRM to solicit information on how to collect and use such data. The tool would collect compensation data from 70,000 to 110,000 contractors (depending on threshold set for completing the survey). These data would be likely arrayed by job group. The scope of the data has yet to be fully determined. Current possibilities include salary, gender, race and ethnicity data for each employee or average compensation and variances for each group by gender, race and ethnic category. Also not yet determined is the type of personnel activity data that will be required (terminations, promotions, etc. by group and demographic category) and whether data on veteran status and disability will be included in the application.

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By Fred Satterwhite, Principal Consultant, DCI Consulting Group

The U.S. Department of Labor (DOL) has announced that the online filing system for VETS-100 and VETS-100A Federal contract reporting will be unavailable until October 1, 2011, due to technical problems. While the electronic filing system is offline, Federal contractors will not be able to register or file VETS-100 or VETS-100A submissions for the 2011 cycle, which typically ends on September 30 each year. DOL had previously planned to begin accepting 2011 submissions on August 1, 2011.

According to the announcement, DOL will not initiate enforcement actions against contractors who submit the VETS-100/VETS-100A from October 1, 2011 through November 30, 2011. Unless further updates are provided in the meantime, DOL may initiate enforcement actions against contractors who do not submit reports by November 30, 2011.

The announcement states that:

Because the VETS 100 system is not currently available, it is not possible to register or file at all for the 2011 cycle. You will only be able to complete your registration and file once the application is available in October.

If you have been directed to file immediately by a Federal Contracting Officer so that funds to a contract may be obligated to a contract, you may file for the 2010 cycle via the instructions below. Please note, this does not constitute a registration or filing for the 2011 cycle. Registering and Filing for the 2011 cycle is unavailable at this time…

Soft or hard copies of previously submitted reports are not available at this time. The ability to make edits or amendments to submitted reports is not available.

Ironically, this announcement comes just after a bill called the Veterans Employment Promotion Act (H.R. 2243), which would require the Secretary of Labor to establish a web site making information about the number of veterans employed by Federal contractors easily available to the public, passed the Oversight and Investigations Subcommittee of the House Committee on Veterans’ Affairs July 28. The bill is now before the full House Committee on Veterans’ Affairs for consideration.

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Really, I Come Here for the Food: Sex as a BFOQ for Restaurant Servers

Michael Aamodt, Principal Consultant at DCI Consulting Group, wrote an article featured in SIOP’s TIP publication, January 2017.

Recent Blog Posts

OFCCP Begins Mailing Scheduling Letters

DCI has just learned that OFCCP began to send out audit scheduling letters on March 17th.  At this time we are not certain how many were sent out, but we do know that 800 CSALs (Corporate Scheduling Announcement Letters) were sent to contractor establishments last month.  It is critical that corporate compliance representatives notify individual establishments in their organization to be on the look-out for any official OFCCP correspondence.  If you did receive a scheduling notice, please notify DCI immediately so that we can assist you with the audit process.

To read the audit distribution notice, please click here.

By Rosemary Cox, Senior Consultant at DCI Consulting Group

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