Last November, OFCCP proposed a 7% workforce utilization goal for individuals with disabilities, The proposed goal would impact the way employers conduct their outreach and recruiting efforts, the processes and procedures they use for handling requests for accommodation, and the kinds of records and data they keep. Based on OFCCP estimates, the new rule would cost $81.1 million - roughly $473 per contractor per establishment per year.
According to a new study, OFCCP's estimate omitted several important requirements in the NPRM, and under-estimated the cost of other requirements. This study estimates the true cost of the new rule at $5.9 billion in the first year and $2.6 billion in annual recurring costs.
Aside from the financial costs, the study argues "it is conceivable that the costs and inefficiencies of the NPRM will actually harm the interests of disabled workers and all other workers by slowing the hiring process."
In this episode, we talk about the costs to employers of OFCCP's NPRM on disability with our guests Leigh Nason and Mark Wilson. We'll discuss what modifications to IT and HRIS systems would be required to collect and maintain the additional data mandated under the NPRM, the processes needed for providing written explanations of why individuals with disabilities were not hired, the changes needed to implement the annual self-identification survey, and the implications of annually reviewing all physical and mental job qualifications, training employees and developing written accommodation policies.