February 2001

This is an important note to all employers who are considered government contractors and subcontractors by the Office of Federal Contract Compliance Programs ("OFCCP") (which includes all banks with Federal deposits or that sell U.S. Savings Bonds). The OFCCP has recently issued new regulations (12/12/00) that require all contractors/subcontractors to complete, at least once every two years, an "EEO Survey."

Be alert to the fact that an EEO Survey may be a liability time bomb. If your business receives a survey, it does not necessarily mean that your business will be audited by the OFCCP. However, the numbers and answers your business supplies to the OFCCP of the survey can be used to determine if the OFCCP will initiate an expensive and costly audit of your business.

If your business receives an EEO Survey, there are steps that can and should be taken in order to both minimize the risk of a potential audit and to put your business into a position to survive an audit if it should occur. If you receive a survey and have any questions concerning the form, how to complete the form, or about the OFCCP itself, please contact the Rhoads & Sinon LLP Employment and Labor Law Group.