The Office of Federal Contract Compliance Programs (OFCCP) has announced the reinstatement of the Monthly Employment Utilization Report (Form CC-257). With the CC-257 report, covered construction contractors and subcontractors with contracts exceeding $10,000 must provide monthly information to OFCCP on their employee work hours and employee count by race/ethnicity, gender, and trade. This reinstated requirement will take effect starting March 2025, with the first report due on April 15, 2025.
About Form CC-257
OFCCP’s goal is to strengthen its enforcement, outreach, and compliance assistance activities, particularly to address employment discrimination in the construction industry. Construction contractors already have an obligation to take proactive measures to promote equal employment opportunity, and the report can assist OFCCP with evaluating how contractors are carrying out these obligations. Contractors can also use the monthly report to proactively monitor their equal employment opportunity efforts and take corrective measures if they find obstacles to equal employment opportunity.
OFCCP discontinued the use of Form CC-257 in December 1995 because the information provided did not appear to be utilized by the agency. Per an article from JD Supra, “In seeking permission from the Office of Management and Budget to resume the collection of this information, OFCCP argued that it would be able to leverage electronic systems to review Form CC-257 reports so as to “strengthen OFCCP’s enforcement, outreach, and compliance assistance activities, and [. . . ] help the agency better meet its mission of protecting workers in the construction trades, as employment discrimination continues to be a problem in the construction industry.”
The Form CC-257 seeks the following Company Profile information:
- federal contractor or subcontractorname, registered address, Employer Identification Number (EIN), and Unique Entity ID (UEI) or Data Universal Numbering System (DUNS) number.
- name(s) of all U.S. government agencies funding the project, in whole or in part.
- whether the contractor is a prime contractor, subcontractor, or both.
- employee counts and total construction work hours performed monthly for each calendar month as of the last day of the month to include total number of trade employees in each trade, by race, gender, and classification (e.g., foreperson, journey workers, apprentices, trainees, and non-apprenticed laborers or helpers).
- number of standard metropolitan statistical areas (SMSA) or economic areas (EA) in which the (sub)contractor has projects during the reporting period. The geographic areas identified are required under 41 CFR 60-4.2.
- whether the company performed work on a project designated by OFCCP as a Megaproject through its Mega Construction Project Program.
Certification of the information’s accuracy must be provided by the company official submitting the report.
Report Submission Methods
In OFCCP’s notice proposing to reinstate the form, OFCCP estimated on average it would take 1.5 hours each month for a contractor or subcontractor to prepare and submit Form CC-257.
Per the OFCCP, covered contractors may submit an Excel version of the report via email to [email protected] (the preferred method of submission) or may send a PDF version of the report via email to [email protected] or via mail to:
United States Department of Labor,
Office of Federal Contract Compliance Programs
Division of Program Operations
200 Constitution Ave NW, Room C-3325
Washington, DC 20210
OFCCP has a help desk with dedicated staff to assist contractors if they have questions or need technical assistance ([email protected]) along with a frequently asked questions (FAQ) page which can be found here.
Reporting Periods
Each report must cover a full calendar month and is due by the 15th of the following month. If this date falls on a weekend or federal holiday, the report is due on the following business day. The first report will cover the full calendar month of March 2025 and will be due by April 15, 2025.
OFCCP Enforced Equal Employment Opportunity Laws
The OFCCP is a United States Department of Labor agency that enforces equal employment opportunity laws and protects workers working on federal contracts. The OFCCP’s enforcement actions apply to nearly one-in-four American workers employed by 200,000 federal contractors:
- Enforces laws: The OFCCP enforces three laws (Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans Readjustment Assistance Act of 1974) that prohibit discrimination in employment based on race, color, religion, sex, sexual orientation, gender identity, national origin, disability, and status as a protected veteran.
- Promotes diversity: The OFCCP promotes diversity through equal employment opportunity.
- Supports voluntary compliance: The OFCCP supports voluntary compliance by federal contractors and subcontractors.
- Conducts compliance evaluations: The OFCCP conducts compliance evaluations of federal contractors.
- Investigates complaints: The OFCCP investigates complaints.
Importance of OFCCP Compliance
OFCCP compliance goes beyond just following rules; it reflects an organization’s values of fairness, equity, and respect for diversity. By prioritizing compliance, companies contribute to creating a more equitable society where everyone has the chance to succeed based on merit rather than bias or discrimination.
OFCCP conducts compliance evaluations to assess whether federal contractors meet their obligations. Evaluations may include desk audits, off-site reviews, or on-site visits to examine personnel processes and data for potential disparities or violations. By adhering to the regulations set forth by OFCCP, organizations demonstrate their commitment to promoting equal employment opportunities, avoid costly penalties, and enhances their reputation as socially responsible employers. OFCCP fosters a diverse and inclusive work environment where all employees have equal opportunities for advancement and fair treatment. Failure to maintain OFCCP compliance can lead to significant consequences for federal contractors. These may include:
- Contractual penalties: Businesses may face contract termination, suspension, or debarment, resulting in substantial financial losses.
- Monetary fines: Contractors and subcontractors can be subject to hefty fines, ranging from thousands to millions of dollars.
- Legal liabilities: Serious violations could lead to civil or criminal charges, potentially resulting in fines and imprisonment.
- Audits and disruptions: The OFCCP conducts regular audits to assess compliance. Non-compliance can lead to time-consuming and disruptive audits, affecting productivity.
- Reputation damage: Public scrutiny of non-compliance can harm a company’s reputation, making it difficult to attract and retain talent, as well as secure new business opportunities.
EEOC Enforced Equal Employment Opportunity Laws
While the OFCCP promotes diversity in hiring practices, the Equal Employment Opportunity Commission (EEOC) focuses on anti-discrimination in the employee base enforcing federal laws that prohibit discrimination in the workplace, investigating complaints of discrimination based on race, color, religion, sex, national origin, age, disability, or genetic information and acting if the EEOC finds that discrimination has occurred. According to the EEOC report Combating Employment Discrimination in Construction, “Historic federal investments in recent years have increased job opportunities in the construction industry. The EEOC is focusing on construction to ensure doors of opportunity are open to all qualified workers…and is committed to eliminating recruitment and hiring barriers in industries like construction where women and some workers of color are underrepresented.”
HigherGov.com reports Federal construction awards in 2023 reached $54.3 billion.