Federal contractors face growing scrutiny as the U.S. Department of Labor (DOL) ramps up penalties for hiring discrimination. Recent cases have seen employers like Boeing Distribution Services and National Office Furniture slapped with hefty fines for allegedly overlooking minority and female job applicants. The number of conciliation agreements with financial penalties jumped 42% in the 2023 fiscal year, signaling heightened enforcement.
While some private employers are shying away from diversity initiatives, government contractors face increased obligations to ensure equal opportunities. They must track job applicant flow, hiring decisions, and more, to demonstrate fair hiring practices, building defensible cases while striving for diversity. This intensifying focus underscores the need for everyone involved in hiring to be well-versed in compliance.
Nancy Van der Veer Holt, a partner at FordHarrison shared that regulators conducting OFCCP audits are “reviewing contractors’ data and looking for statistical disparities in selection rates by race and gender.” You can’t wing it when it comes to tracking applicant data.
Layoffs: Leidos
Leidos Holdings Inc., a prominent government contractor, is making the tough decision to lay off 130 employees in Baltimore County as a significant contract with the U.S. Department of Health and Human Services winds down at the end of this year. This move reflects a larger trend in the region, with other government contractors taking similar steps. While these changes are undoubtedly challenging, Leidos remains committed to helping its affected employees find new opportunities and navigate this transition with care. a Leidos spokesperson also noted that the company will try to hire back some laid-off employees too.
Hiring: Amazon
Amazon’s groundbreaking delivery station project on a sprawling 14-acre site at Sand Island is racing toward its April 2024 opening, with construction now 65% complete. Packages will soon zip in, and Amazon’s fleet of trucks will whisk them to this cutting-edge facility, which will then dispatch them across Oahu. The project marks another milestone in Amazon’s strategic expansion across Hawaii. The good news for Hawaii’s workforce is that Amazon is poised to hire up to 500 employees for its Sand Island facility, along with 250 delivery truck drivers through partnerships with entrepreneurs. This transformation promises faster service for Hawaii consumers and a boost for local retailers looking to expand their presence through Amazon’s platform, which already sees 60% of its items sold coming from small businesses. It’s a dynamic shift that combines convenience and growth potential while nurturing local enterprises.
Cleared Employer at Work: CISA
Thank you for your service. We appreciate your commitment to country, value your integrity and innovation, and are proud to offer veterans preference in our hiring process. 40% of CISA employees have spent time serving in the Coast Guard, U.S. Navy, Air Force, Marines, Army, or Space Force. Those who have served our nation have the character, expertise, and leadership skills we seek. CISA is committed to providing employment opportunities for qualified, eligible veterans. Join us and continue to serve and protect our great nation.
Opportunity to Watch
The battle for top talent in the federal sector is about to get even fiercer in FY24 as the White House maintains its drive to bring employees back to the office. Kevin Plexico, Senior Vice President of Information Solutions for Deltek, highlights the competitive squeeze on government agency contractors as they strive to retain their workforce against the lure of commercial sector jobs offering telework flexibility.
Plexico shared thoughts on federal return-to-office plans, “If the government employee goes back, you can bet that the contractors that support them are also going to be required to go back into the office.”
The heightened competition occurs because of low unemployment rates and the changing work environment, as employees seek to keep the telework benefits they’ve come to expect from the pandemic. With the pressure to return to office settings, government contractors face challenges in retaining talent when competing against companies with more flexible work arrangements. This situation further complicates matters as a new budget battle looms in Congress, potentially resulting in a stopgap bill that stretches into January or April.
