DOL Sends OFCCP Disability, Vets Rules to OMB for Clearance

Employment Law, Inclusion and Diversity

Despite early signals from newly confirmed DOL Secretary Perez that he planned to work with stakeholders in a "collaborative" manner, the Department this week sent to the Office of Management and Budget the OFCCP's proposed Section 503 disability affirmative action rule, ignoring pleas from HR Policy and other business groups to try to seek a consensus on how to achieve the same goals in a workable manner.  DOL also sent controversial rules governing affirmative action regarding veterans.  The rule will not be available publicly until it is published in the Federal Register after approval by OMB, which could occur at any time within the next 60 days.  In a letter from HR Policy to OMB's Office of Information and Regulatory Affairs Administrator Howard Shelanski, we asked for a meeting to express our concerns regarding the proposed rules, noting the substantial costs and administrative burdens they would create for federal contractors, and pointing out:

Our members are committed to increasing the employment of Americans with disabilities regardless of what is required by the federal government and most have programs going well beyond the requirements of Section 503 that are not motivated merely by compliance with governmental requirements.  However, we believe that the approach set forth in the [proposed rule] imposes unachievable standards and burdensome requirements on federal contractors while undermining the aforementioned goal.

The quick action on these rules following Perez's confirmation reinforces concerns within the business community that the Obama administration's aggressive, anti-business employment policy agenda has new life.  Targeting gender pay discrimination, OFCCP is also expected to propose another rule later this year significantly increasing the compensation reporting burden for federal contractors.  In a speech this week, OFCCP Director Patricia Shiu said: “We are committed to doing what it takes to close that pay gap once and for all.”  Meanwhile, the five Members of the NLRB were confirmed by the Senate this week as expected, clearing the way for a strong revival of that agency's pro-union agenda.  In addition, President Obama nominated Richard Griffin to serve as NLRB General Counsel, a position which is currently filled by Lafe Solomon in an acting capacity.  Griffin is one of the two challenged "recess" appointees who is stepping down from his position as a Board Member as a result of the confirmations.