President Trump’s 2018 budget includes merging the Office of Federal Contract Compliance Programs (OFCCP) into the Equal Employment Opportunity Commission (EEOC). The underlying theory is that both agencies deal with employment discrimination and the combination would save money. There is significant opposition, however, from both employer and employee groups.
(The OFCCP and EEOC are both among the Top 9+ Government Websites for New York Employers.)
What is the OFCCP?
The OFCCP is currently housed within the Department of Labor. It was created in 1978 under President Carter to centralize enforcement of federal affirmative action requirements. The requirements apply to certain entities with federal grants or contracts. In some cases, these companies must create and maintain written affirmative action plans. The goal is to promote hiring of women, minorities, persons with disabilities, and veterans. Affirmative action does not technically permit employers to discriminate in favor of these groups at the expense of other employees. Rather, it focuses on enhancing recruiting efforts to include these populations and eliminating discrimination against these protected groups.
What is the EEOC?
The EEOC is a federal agency separate from the Department of Labor. It was created in 1965. The EEOC administers and enforces federal workplace discrimination laws, including: Title VII, the Equal Pay Act, the Americans With Disabilities Act, the Age Discrimination in Employment Act, and the Genetic Information Nondiscrimination Act. These laws apply to all employers in the U.S. with enough employees. (Of these laws the ADEA has the highest threshold at 20 employees.)
Who Wants the OFCCP to Join the EEOC?
The Heritage Foundation, a conservative think tank, has been pitching this idea to every President since Reagan in the 1980s. This group argues, “The OFCCP has become redundant. Taxpayers should not fund two separate and duplicative anti-discrimination agencies, one for federal contractors and one for all employers.”
President Trump has shown a strong desire and willingness to deregulate the federal government. So to the extent that this proposal could streamline federal oversight of employment policy, it fits within his agenda. Not everyone agrees that this would be the reality, however.
Who Doesn’t Want the OFCCP to Join the EEOC?
A lot of powerful constituencies.
Major pro-business groups are lining up against this proposal. This includes The Institute for Workplace Equality and the U.S. Chamber of Commerce. They fear that this combination would cause uncertainty and unintended consequences. For example, the EEOC has broader enforcement authority and could use information obtained in affirmative compliance action to pursue anti-discrimination actions. (Read my post on Responding to Employment Discrimination Complaints.)
The National Employment Law Project, an employee rights group, and civil rights groups like the NAACP and Americans Civil Liberties Union have also expressed opposition.
What Will Happen to the OFCCP?
It’s too soon to tell, but there is a good chance it will stay where it is. At this point, the merger is only a White House proposal. Congress would have to approve it and amend existing laws to fully transfer all necessary authority to the EEOC.
With so many groups opposed from all sides, this seems like an area the Republicans facing re-election next year would want to avoid. But another aspect of the White House budget, reduced funding of the OFCCP, could perhaps garner sufficient support.
If your organization is subject to federal affirmative action requirements, check back here for updates on the status of this proposal. Or sign up for the Horton Law PLLC newsletter to receive email updates.