1. Welcome to Compliance Day Nita Beecher Mercer Networks April 18, 2012

2. MERCER 1 October 3, 2015 Today’s Schedule 8:30 am Introduction and overview of SWARM meeting 9:00 am David Fortney, Fortney & Scott, to discuss the latest from the federal agencies 10:00 am Update on Sections 503 and 4212 proposals 10:30 am Break 10:45 am Louise Sheppard and Nora Vele on best practices on outreach to veterans and the disabled 12:00 am Lunch 1:15 pm Member Roundtable 2:30 pm Meeting ends Next meeting July 17-18 @ The Boeing Company Chicago

3. MERCER 2 October 3, 2015 Overview of SWARM Pat Shiu –Important to see business problems –Believes in partnership with ILG so agency can communicate with business –Lines of communication need to be open –Believes major function to be of use to contractors –Trying to leave agency in better shape than when she came in ­Focus to have better and more organized audits and to be more consistent –Agency is worker’s protection agency

4. MERCER 3 October 3, 2015 Overview of SWARM Shiu on regulatory reform –Long overdue –Will consider thoughtful comments from contractors –Good faith efforts not enough but have value –Upset when sees negative comments in blogs or press –Not productive to “waste time” quelling rumors or dispelling myths –Final rules to be issue “shortly” –Believes negative response to regulations coming from the lawyers as HR likes what she is doing

5. MERCER 4 October 3, 2015 Overview of SWARM David Cohen –OFCCP under Bush systemic discrimination vs. affirmative action under Clinton –ACE under Obama both systemic and AAP –Moving from focus on minority vs. nonminority to “sub racial” analysis –Hiring still biggest $$ ­FedEx Ground $30M for hiring discrimination against men, women, blacks, whites, Native Americans, Hispanics, Asians ­23 facilities

6. MERCER 5 October 3, 2015 Overview of SWARM David Cohen continued –Access cases and impact of U. S. Space decision –Conciliation agreement vs. closure letter ­Varies widely by region ­Most CAs now based on outreach issues (58 vs. 26 for recordkeeping) –Compensation ­2006 Comp Guidance still law ­Only 1 pay case in 2011 (AstraZeneca) ­Pam Cuokos is building protocols ­Most 2011 cases are more like EPA than Title VII

7. MERCER 6 October 3, 2015 Overview of SWARM John Fox –Audits changing ­Fewer audits and less concern over number of audits –Believes Obama is using OFCCP to win women’s votes ­Compensation discrimination ­Sex discrimination guidance ­Pregnancy discrimination focus –United Space “fiasco” for contractors ­OFCCP now using as carte blanc in desk audits ­Judge supported agency argument that anything they want is relevant

8. MERCER 7 October 3, 2015 Overview of SWARM John Fox –Sees changes in tone of audits, contractors feeling bullied and lack of transparency by agency –Argues that OFCCP no longer discussing with contractors results just saying show me the money ­Differences between regions greater –Agency now “flyspecking AAPs” ­Cross checking payroll data against hires ­Doing during desk audit what used to do during onsite –Compensation ­“Drilling a dry hole” ­Spent $1B investigating for $10M in pay discrimination

9. MERCER 8 October 3, 2015 Overview of SWARM John Fox –FedEx Ground case ­Poor documentation ­Failure to control applicant flow ­300% turnover ­One of cheapest cases ever because only asked for 4 weeks of mitigation ­Tyson got 26-50 weeks

10. MERCER 9 October 3, 2015 OFCCP Bradley Anderson, new Midwest Regional Director, said following would keep OFCCP @ bay –CEO/C Suite have priority for EEO –EO/AA accountability @ top –Monitoring and self audit reviews –Consistent personnel policies and guidelines –Proactive efforts in diversity, recruitment, wide net for job listing, anti-harassment program –Implement appropriate selection policy –Create/implement/monitor/assess affirmative action plan numbers –Understand reasonable accommodation concept

11. MERCER 10 October 3, 2015 Section 503 and Section 4212 John Fox and David Cohen believe VEVRAA will be finalized but Section 503 will not until a second Obama term If Obama loses Fox believes Section 503 final rules could be finalized if published prior to December 19 Fox not sure why Section 4212 regulations not finalized already Pat Shiu told ILG representatives that she wants to change culture around disabilities so applicants and individuals no longer feel stigmatized Final Section 4212 will also overturn Frito-Lay –Contractors will be required to provide updated data to OFCCP