`[Federal Register Volume 65, Number 198 (Thursday, October 12, 2000)]
[Proposed Rules]
[Pages 60816-60820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-25774]



[[Page 60815]]

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Part V





Department of Labor





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Office of Federal Contract Compliance Programs



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41 CFR Parts 60-1, 60-250, and 60-741



Affirmative Action and Nondiscrimination Obligations of Contractors and 
Subcontractors; Compliance Evaluations in All OFCCP Programs; Proposed 
Rule

  Federal Register / Vol. 65, No. 198 / Thursday, October 12, 2000 / 
Proposed Rules  

[[Page 60816]]


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DEPARTMENT OF LABOR

Office of Federal Contract Compliance Programs

41 CFR Parts 60-1, 60-250, and 60-741

RIN 1215-AB28, 1215-AB27, 1215-AB23


Affirmative Action and Nondiscrimination Obligations of 
Contractors and Subcontractors; Compliance Evaluations in All OFCCP 
Programs

AGENCY: Office of Federal Contract Compliance Programs, Employment 
Standards Administration, Labor.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This proposal would revise certain regulations implementing 
Section 503 of the Rehabilitation Act of l973, as amended (Section 503 
or the Act). Section 503 requires Government contractors and 
subcontractors to take affirmative action to employ and advance in 
employment qualified individuals with disabilities. The current 
regulations implementing Section 503 authorize OFCCP to conduct 
compliance reviews to determine whether a contractor is complying with 
its affirmative action and nondiscrimination obligations. Today's 
proposal would revise the Section 503 regulations to expressly 
authorize OFCCP to use additional investigative procedures to determine 
a contractor's compliance with Section 503. In this regard, today's 
proposal would conform the regulations implementing Section 503 to the 
compliance evaluation procedures contained in the regulations 
implementing Executive Order 11246, as amended, and the affirmative 
action provisions of the Vietnam Era Veterans' Readjustment Assistance 
Act of 1974, as amended (VEVRAA), respectively.
    In addition, today's proposal would revise the compliance check 
procedure found in the current regulations implementing Executive Order 
11246 and the affirmative action provisions of VEVRAA by eliminating 
the on-site visit requirement. The compliance check is one of the four 
compliance evaluation methods currently used by OFCCP to determine a 
contractor's compliance with Executive Order 11246 and the affirmative 
action provisions of VEVRAA.

DATES: To be assured of consideration, comments must be in writing and 
must be received on or before December 11, 2000.

ADDRESSES: Comments should be sent to James I. Melvin, Director, 
Division of Policy, Planning and Program Development, OFCCP, Room C-
3325, 200 Constitution Avenue, N.W., Washington, D.C. 20210.
    As a convenience to commenters, public comments transmitted by 
facsimile (FAX) machine will be accepted. The telephone number of the 
FAX receiver is (202) 693-1304. To assure access to the FAX equipment, 
only public comments of six or fewer pages will be accepted via FAX 
transmittal. Receipts of FAX transmittals will not be acknowledged; 
however the sender may request confirmation that a submission has been 
received by calling (202) 693-0102 (voice), (202) 693-1308 (TTY).

FOR FURTHER INFORMATION CONTACT: James I. Melvin, Director, Division of 
Policy, Planning and Program Development, OFCCP, Room C-3325, 200 
Constitution Avenue, N.W., Washington, D.C. 20210. Telephone (202) 693-
0102 (voice), (202) 693-1308 (TTY). Copies of this proposed rule, 
including copies in alternative formats, may be obtained by calling 
(202) 693-0102 (voice), or (202) 693-1308 (TTY). The alternate formats 
available are large print, electronic file on computer disk, and 
audiotape. The proposed rule also is available on the Internet at 
http://www.dol.gov/dol/esa.

SUPPLEMENTARY INFORMATION:

Background

    Section 503 of the Rehabilitation Act of 1973, as amended, 29 
U.S.C. 793 (Section 503 or the Act), requires parties holding a 
nonexempt Government contract or subcontract in excess of $10,000 to 
take affirmative action to employ and advance in employment qualified 
individuals with disabilities. The Department of Labor's Office of 
Federal Contract Compliance Programs (OFCCP) enforces Section 503 
through implementing regulations codified at 41 CFR Part 60-741. OFCCP 
published a substantial revision of its Section 503 regulations on May 
1, 1996 (61 FR 19336). Since that time, OFCCP has revised its 
regulations implementing Executive Order 11246, as amended, and the 
affirmative action provisions of the Vietnam Era Veterans' Readjustment 
Assistance Act, as amended (VEVRAA). Among the revisions made to both 
sets of regulations was the introduction of a variety of alternative 
means of assessing contractors' compliance with their nondiscrimination 
and affirmative action obligations.
    Before amendment, the primary method for evaluating compliance in 
the Executive Order and VEVRAA enforcement programs was the 
``compliance review.'' Both the scope and content of a compliance 
review under Executive Order 11246 were prescribed by regulation. 
Compliance reviews were to be a comprehensive evaluation of a 
contractor's employment practices and were to consist of a desk audit, 
an on-site review and, if necessary, an off-site analysis. The recent 
amendments to the Executive Order and VEVRAA implementing regulations 
were designed to provide the agency greater flexibility in the manner 
in which it evaluates compliance by authorizing the agency to utilize a 
wider range of methods for evaluating compliance. Specifically, in 
addition to the full compliance review, three abbreviated methods for 
evaluating a contractor's compliance are included in the Executive 
Order 11246 and VEVRAA regulations: off-site review of records, 
compliance check, and focused review.
    This proposal to revise certain provisions of the Section 503 
regulations is precipitated by the new methods for evaluating 
contractor compliance introduced in the Executive Order 11246 and 
VEVRAA regulations. Under the current regulations implementing Section 
503 the compliance review remains the primary method for evaluating 
compliance. The current regulations at 41 CFR 60-741.60 prescribe the 
scope of compliance reviews, but unlike the prior Executive Order 
regulations, do not prescribe the content of a review. For example, 
under the current regulations, OFCCP may complete the Section 503 
compliance review without making an on-site visit to the contractor's 
establishment, if the agency can make a determination about compliance 
based upon a review and analysis of the documentation submitted by the 
contractor in response to the scheduling letter. Likewise, if an on-
site visit is required in order to evaluate a particular contractor's 
compliance with the requirements of Section 503, OFCCP has the 
authority, under the current regulations, to limit its on-site 
investigation to one or two issues.
    Today's proposal would supplement the comprehensive compliance 
review with a variety of different means for assessing a contractor's 
compliance with Section 503 and its implementing regulations. The rule 
we propose today would formally adopt the compliance evaluation 
approach and expressly authorize off-site reviews of records, 
compliance checks, and focused reviews under Section 503. Today's 
proposal also would replace the term ``compliance review'' with 
``compliance

[[Page 60817]]

evaluation,'' as appropriate, in certain sections of the regulations.
    The proposed revisions to 41 CFR Part 60-741 are necessary to 
harmonize the procedures used when enforcing Section 503, the Executive 
Order, and VEVRAA. OFCCP believes that adopting the compliance 
evaluation approach for determining compliance with Section 503 and its 
implementing regulations would further improve efficiency and permit 
the agency to better target its resources. Today's proposal would 
ensure that the agency could use parallel procedures to simultaneously 
evaluate contractor compliance under all three laws. At the same time, 
today's proposal would give OFCCP leeway to develop and pursue 
enforcement initiatives that focus on contractor compliance with the 
requirements of Section 503 and its implementing regulations. For 
example, the rule we propose today would allow OFCCP to conduct 
compliance checks solely for the purpose of examining whether 
contractors have developed and implemented the affirmative action 
programs required under the regulations in 41 CFR Part 60-741.
    Today's proposal also would revise the definition of ``compliance 
check'' used in the Executive Order and VEVRAA regulations by removing 
the requirement that OFCCP visit a contractor's establishment during a 
compliance check. This change would allow OFCCP greater flexibility 
when using the compliance check method to assess a contractor's 
compliance status. With this change, OFCCP could permit a contractor to 
satisfy the requirements of the compliance check by supplying the 
required records and supporting information to an OFCCP office or other 
designated site. Although the proposal would change how the agency 
intends to implement the compliance check, it would not expand the 
scope of the examination contemplated under the compliance check 
procedure. Lastly, today's proposal corrects a drafting oversight by 
adding the term and definition of ``compliance evaluation'' to the 
definition section of the VEVRAA regulations at 41 CFR 60-250.2. The 
definition proposed is consistent with the definition in OFCCP's 
Executive Order 11246 regulations and with the definition we today 
propose to add to the Section 503 regulations.

Section-by-Section Analysis

Section 60-741.2  Definitions

    A definition of the term ``compliance evaluation'' is being added 
to the definition section of the regulations implementing Section 503 
of the Rehabilitation Act of 1973. The proposed definition is 
consistent with the definition included in the regulations implementing 
Executive Order 11246 at 41 CFR 60-1.3. Under the new definition a 
compliance evaluation means any one or combination of actions OFCCP may 
take to examine a Federal contractor's or subcontractor's compliance 
with one or more of the requirements of Section 503 of the 
Rehabilitation Act of 1973.

Section 60-741.44  Required Contents of Affirmative Action Programs

    These paragraphs are unchanged from the existing Sec. 60-741.44, 
except that the term ``compliance review'' has been replaced with the 
new term ``compliance evaluation'' in Sec. 60-741.44(a)(2).

Section 60-741.60  Compliance Evaluations

    We propose to revise existing paragraph (a) of Sec. 60-741.60, 
which now addresses compliance reviews.
    In the current regulations, paragraph (a) describes the purpose of 
a compliance review, provides that the review will consist of a 
comprehensive analysis of all relevant nondiscrimination and 
affirmative action practices, and provides that, where necessary, 
recommendations for appropriate sanctions will be made. The proposal 
expressly authorizes OFCCP's use of additional methods to evaluate a 
contractor's compliance with its Section 503 obligations. Consistent 
with the regulations implementing Executive Order 11246 and the 
affirmative action provisions of VEVRAA, the proposal specifies that 
the compliance evaluation methods available to OFCCP, other than the 
full compliance review, include an off-site review of records, a 
compliance check and a focused review. The activities that are 
contemplated under each of the four evaluation methods are described in 
proposed paragraph (a).
    Proposed paragraph (a)(1), as does existing paragraph (a), states 
that a compliance review is a comprehensive analysis and evaluation of 
the hiring and employment practices of the contractor, the written 
affirmative action program, and the results of affirmative actions 
efforts undertaken by the contractor. Proposed paragraph (a)(2) 
describes the off-site review of records. An off-site review of records 
is composed of an analysis and evaluation of the affirmative action 
program (or any part thereof) and supporting documentation, and other 
documents related to the contractor's personnel policies and employment 
actions that may be relevant to a determination of whether the 
contractor has complied with the requirements of Section 503 of the 
Rehabilitation Act of 1973 and its implementing regulations. A 
compliance check is described in proposed paragraph (a)(3) as a 
determination of whether data and other information previously 
submitted by the contractor are complete and accurate; whether the 
contractor has maintained records consistent with Sec. 60-741.80 and/or 
whether the contractor has developed an affirmative action program 
consistent with Sec. 60-741.40. Proposed paragraph (a)(4) states that a 
focused review is an on-site review restricted to one or more 
components of the contractor's organization or one or more aspects of 
the contractor's employment practices.

Section 60-741.62  Conciliation Agreements and Letters of Commitment

    These paragraphs are unchanged from the existing Sec. 60-741.62, 
except that at Sec. 60-741.62 the term ``compliance review'' is 
replaced with the new term ``compliance evaluation.''

Section 60-741.65  Enforcement Proceedings

    These paragraphs are unchanged from the existing Sec. 60-741.65, 
except that the term ``compliance review'' is replaced with the new 
term ``compliance evaluation'' at Sec. 60-741.65(a)(1).

Section 60-741.68  Reinstatement of Eligible Contractors

    These paragraphs are unchanged from the existing Sec. 60-741.68, 
except that the term ``compliance review'' is replaced with the new 
term ``compliance evaluation'' at Sec. 60-741.68(a).

Section 60-741.69  Intimidation and Interference

    These paragraphs are unchanged from the existing Sec. 60-741.69, 
except that the term ``compliance review'' is replaced with the new 
term ``compliance evaluation'' at Sec. 60-741.69(a)(2).

Section 60-741.80  Recordkeeping

    These paragraphs are unchanged from the existing Sec. 60-741.80, 
except that the term ``compliance review'' is replaced with the new 
term ``compliance evaluation.''

Section 60-741.81  Access to Records

    The paragraph is unchanged from the existing Sec. 60-741.81, except 
that the term ``compliance review'' is replaced with the new term 
``compliance evaluation.''

[[Page 60818]]

Sections 60-1.20 and 60-250.60 Compliance Evaluations

    As discussed in the above preamble, the regulations currently 
authorize OFCCP to conduct compliance evaluations to determine 
contractor compliance with the requirements under Executive Order 11246 
and the affirmative action provisions of VEVRAA. The current 
regulations at 41 CFR 60-1.20(a)(3) and 60-250.60(a)(3) describe a 
compliance check as ``a visit to the [contractor's] establishment'' to 
ascertain whether data and other information previously submitted is 
accurate and complete; whether the contractor has maintained records 
consistent with the record retention requirements in Secs. 60-1.12 and 
60-250.80; and whether the contractor has developed affirmative action 
programs consistent with the regulations. The agency has found that, in 
many instances, the assessments made with a compliance check procedure 
can be made without making an on-site visit. Accordingly, the proposal 
would revise the regulations at 41 CFR 60-1.20(a)(3) and 60-
250.60(a)(3) by removing the requirement that OFCCP visit a 
contractor's establishments when the ``compliance check'' procedure is 
used to assess compliance. The proposed revision to the compliance 
check procedure is designed to improve agency efficiency, but OFCCP 
believes that contractors also would find it more efficient and less 
burdensome if the regulations did not require that a compliance check 
involve an on-site visit. Under this revision the contractor will be 
required to provide OFCCP access to the requested documents, but at the 
contractor's option the documents may be provided either on-site or 
off-site. While the proposal would change how the agency intends to 
implement the compliance check, it would not expand the scope of the 
examination contemplated under the compliance check procedure.

Section 60-250.2  Definitions

    A definition of the term ``compliance evaluation'' is being added 
to the definition section of the regulations implementing VEVRAA. The 
definition being added is consistent with the definition in OFCCP's 
Executive Order 11246 regulations. Under the new definition, a 
compliance evaluation means any one or combination of actions OFCCP may 
take to examine a Federal contractor or subcontractor's compliance with 
one or more of the requirements of VEVRAA.

Regulatory Procedures

Executive Order 12866

    The Department is issuing this proposed rule in conformance with 
Executive Order 12866. The rule has been determined not to be 
significant for purposes of Executive Order 12866 and therefore need 
not be reviewed by OMB. This rule does not meet the criteria of Section 
3(f)(1) of Executive Order 12866 and therefore the information 
enumerated in Section 6(a)(3)(C) of that Order is not required.
    This conclusion is based on the fact that this proposed rule does 
not substantially change the existing obligations of Federal 
contractors to apply a policy of nondiscrimination and affirmative 
action. Furthermore, this proposed rule does not substantially change 
the enforcement techniques currently employed by OFCCP to ensure 
federal contractor compliance with their nondiscrimination and 
affirmative action obligations.

Regulatory Flexibility Act

    This proposed rule does not substantively change existing 
obligations for Federal contractors; it would only specify the 
procedures the agency may use to evaluate a Federal contractor's 
compliance with existing requirements. Accordingly, we certify that the 
rule will not have a significant economic impact on a substantial 
number of small business entities. Therefore, a regulatory flexibility 
analysis under the Regulatory Flexibility Act is not required.

Unfunded Mandates Reform

    For purposes of the Unfunded Mandates Reform Act of 1995, as well 
as Executive Order 12875, the proposed rule, if promulgated, will not 
include any federal mandates that may result in increased expenditures 
by state, local, and tribal governments, or increased expenditures by 
the private sector, of $100,000,000 or more in any one year.

Paperwork Reduction Act

    Today's proposal would have a negligible impact, if any, on the 
information collection requirements currently approved by the Office of 
Management and Budget (OMB) under the Paperwork Reduction Act (44 
U.S.C. 3501, et seq.). Information collection requirements for 
compliance evaluations are currently approved under OMB control number 
1215-0072. The currently approved inventory includes a burden estimate 
for compliance checks, which is based on the assumption that it takes 
the average contractor approximately four-tenths of an hour to find and 
make available the documents requested during a compliance check. The 
proposal to revise the compliance check procedure by removing the on-
site visit requirement would mean that, during some compliance checks, 
contractors would be asked to provide documents to OFCCP rather than 
make them available for an OFCCP compliance officer to review on-site. 
OFCCP believes that, for some contractors, this may take more time than 
it would to make them available on-site, but, for others, it may take 
less time. Accordingly, OFCCP estimates that the proposed revision to 
the compliance check procedure will not result in a net change in the 
burden hours associated with compliance checks. OFCCP will submit for 
approval to OMB the information collection provisions of this rule as 
necessary. OFCCP invites comments on the information collection 
provisions of this rule.

Executive Order 13132 (Federalism)

    OFCCP has reviewed this proposed rule in accordance with Executive 
Order 13132 regarding federalism, and has determined that it does not 
have ``federalism implications.'' The rule does not ``have substantial 
direct effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''

List of Subjects

41 CFR Part 60-1

    Administrative practice and procedure, Equal employment 
opportunity, Government contracts, Reporting and recordkeeping 
requirements.

41 CFR Part 60-250

    Administrative practice and procedure, Equal employment 
opportunity, Government contracts, Individuals with disabilities, 
Reporting and recordkeeping requirements, Veterans.

41 CFR Part 60-741

    Administrative practice and procedure, Equal employment 
opportunity, Government contracts, Individuals with disabilities, 
Reporting and recordkeeping requirements.


[[Page 60819]]


    Signed at Washington, D.C., this 2d day of October, 2000.
Alexis M. Herman,
Secretary of Labor.

Bernard E. Anderson,
Assistant Secretary for Employment Standards.
Shirley J. Wilcher,
Deputy Assistant Secretary for Federal Contract Compliance.
    Accordingly, for the reasons set forth in the Preamble, we propose 
to amend Title 41 of the Code of Federal Regulations, chapter 60, Parts 
60-1, 60-250 and 60-741, under authorities cited as set forth below:

PART 60-1--OBLIGATIONS OF CONTRACTORS AND SUBCONTRACTORS

    1. The authority citation for part 60-1 continues to read as 
follows:

    Authority: Sec. 201, E.O. 11246 (30 FR 12319), as amended by 
E.O. 11375 (32 FR 14303) and E.O. 12086 (43 FR 46501).

    2. In Sec. 60-1.20 paragraph (a)(3) is revised to read as follows:


Sec. 60-1.20  Compliance evaluations.

    (a) * * *
    (3) Compliance check. A determination of whether data and other 
information previously submitted by the contractor is complete and 
accurate; whether the contractor has maintained records consistent with 
Sec. 60-1.12; and/or whether the contractor has developed an AAP 
consistent with Sec. 60-1.40; or
* * * * *

PART 60-250--AFFIRMATIVE ACTION AND NONDISCRIMINATION OBLIGATIONS 
OF CONTRACTORS AND SUBCONTRACTORS REGARDING SPECIAL DISABLED 
VETERANS AND VETERANS OF THE VIETNAM ERA

    3. The authority citation for part 60-250 continues to read as 
follows:

    Authority: 29 U.S.C. 793: 38 U.S.C. 4211 and 4212; E.O. 11758 (3 
CFR, 1971-1975 Comp., p. 841.)

    4. In Sec. 60-250.2 paragraph (v) is added to read as follows:


Sec. 60-250.2  Definitions.

* * * * *
    (v) Compliance evaluation means any one or combination of actions 
OFCCP may take to examine a Federal contractor or subcontractor's 
compliance with one or more of the requirements of the Vietnam Era 
Veterans' Readjustment Assistance Act.
    5. In Sec. 60-250.60 paragraph (a)(3) is revised to read as 
follows:


Sec. 60-250.60  Compliance evaluations.

    (a) * * *
    (3) Compliance check. A determination of whether data and other 
information previously submitted by the contractor is complete and 
accurate; whether the contractor has maintained records consistent with 
Sec. 60-250.80; and/or whether the contractor has developed an AAP 
consistent with Sec. 60-250.40; or
* * * * *

PART 60-741--AFFIRMATIVE ACTION AND NONDISCRIMINATION OBLIGATIONS 
OF CONTRACTORS AND SUBCONTRACTORS REGARDING INDIVIDUALS WITH 
DISABILITIES

    6. The authority citation for part 60-741 continues to read as 
follows:

    Authority: 29 U.S.C. 706 and 793; and E.O. 11758 (3 CFR, l971-
1975 Comp., p. 841.)

    7. Sec. 60-741.2 is amended by adding a new paragraph (z) to read 
as follows:


Sec. 60-741.2  Definitions.

* * * * *
    (z) Compliance evaluation means any one or combination of actions 
OFCCP may take to examine a Federal contractor's or subcontractor's 
compliance with one or more of the requirements of Section 503 of the 
Rehabilitation Act of 1973.
    8. In Sec. 60-741.44 paragraph (a)(2) is revised to read as 
follows:


Sec. 60-741.44  Required contents of affirmative action programs.

* * * * *
    (a) * * *
    (2) Assisting or participating in an investigation, compliance 
evaluation, hearing, or any other activity related to the 
administration of Section 503 of the Rehabilitation Act of l973, as 
amended (Section 503) or any other Federal, State or local law 
requiring equal opportunity for disabled persons;
* * * * *
    9. In Sec. 60-741.60 the section heading and paragraph (a) are 
revised to read as follows:


Sec. 60-741.60  Compliance evaluations.

    (a) OFCCP may conduct compliance evaluations to determine if the 
contractor maintains nondiscriminatory hiring and employment practices 
and is taking affirmative action to ensure that applicants are employed 
and that employees are placed, trained, upgraded, promoted, and 
otherwise treated in accordance with this part during employment. A 
compliance evaluation may consist of any one or any combination of the 
following investigative procedures:
    (1) Compliance review. A comprehensive analysis and evaluation of 
the hiring and employment practices of the contractor, the written 
affirmative action program, and the results of the affirmative action 
efforts undertaken by the contractor. A compliance review may proceed 
in three stages:
    (i) A desk audit of the written affirmative action program and 
supporting documentation to determine whether all elements required by 
the regulations in this part are included, whether the affirmative 
action program meets agency standards of reasonableness, and whether 
the affirmative action program and supporting documentation satisfy 
agency standards of acceptability. The desk audit is conducted at OFCCP 
offices;
    (ii) An on-site review, conducted at the contractor's establishment 
to investigate unresolved problem areas identified in the affirmative 
action program and supporting documentation during the desk audit, to 
verify that the contractor has implemented the affirmative action 
program and has complied with those regulatory obligations not required 
to be included in the affirmative action program, and to examine 
potential instances or issues of discrimination. An on-site review 
normally will involve an examination of the contractor's personnel and 
employment policies, inspection and copying of documents related to 
employment actions, and interviews with employees, supervisors, 
managers, hiring officials; and
    (iii) Where necessary, an off-site analysis of information supplied 
by the contractor or otherwise gathered during or pursuant to the on-
site review;
    (2) Off-site review of records. An analysis and evaluation of the 
affirmative action program (or any part thereof) and supporting 
documentation, and other documents related to the contractor's 
personnel policies and employment actions that may be relevant to a 
determination of whether the contractor has complied with the 
requirements of Section 503 of the Rehabilitation Act of 1973 and 
regulations;
    (3) Compliance check. A determination of whether data and other 
information previously submitted by the contractor is complete and 
accurate; whether the contractor has maintained records consistent with 
Sec. 60-741.80; and/or whether the contractor has developed an 
affirmative action program consistent with Sec. 60-741.40; or

[[Page 60820]]

    (4) Focused review. An on-site review restricted to one or more 
components of the contractor's organization or one or more aspects of 
the contractor's employment practices.
* * * * *
    10. In Sec. 60-741.62, the first sentence of paragraph (a) is 
revised to read as follows:


Sec. 60-741.62  Conciliation agreements and letters of commitment.

    (a) If a compliance evaluation, complaint investigation or other 
review by OFCCP finds a material violation of the Act or this part, and 
if the contractor is willing to correct the violations and/or 
deficiencies, and if OFCCP determines that settlement on that basis 
(rather than referral for consideration of formal enforcement) is 
appropriate, a written conciliation agreement shall be required. * * *
* * * * *
    11. In Sec. 60-741.65, the first sentence of paragraph (a)(1) is 
revised to read as follows:


Sec. 60-741.65  Enforcement proceedings.

    (a) General. (1) If a compliance evaluation, complaint 
investigation or other review by OFCCP finds a violation of the act or 
this part, and the violation has not been corrected in accordance with 
the conciliation procedures in this part, or OFCCP determines that 
referral for consideration of formal enforcement (rather than 
settlement) is appropriate, OFCCP may refer the matter to the Solicitor 
of Labor with a recommendation for the institution of enforcement 
proceedings to enjoin the violations, to seek appropriate relief, to 
impose appropriate sanctions, or any combination of these outcomes. * * 
*
* * * * *
    12. In Sec. 60-741.68, the fourth sentence of paragraph (a) is 
revised to read as follows:


Sec. 60-741.68  Reinstatement of ineligible contractors.

    (a) * * * Before reaching a decision, the Deputy Assistant 
Secretary may conduct a compliance evaluation of the contractor and may 
require the contractor to supply additional information regarding the 
request for reinstatement. * * *
* * * * *
    13. In Sec. 60-741.69, paragraph (a)(2) is revised to read as 
follows:


Sec. 60-741.69  Intimidation and interference.

    (a) * * *
    (2) Assisting or participating in any manner in an investigation, 
compliance evaluation, hearing, or any other activity related to the 
administration of the act or any other Federal, State or local law 
requiring equal opportunity for disabled persons;
* * * * *
    14. In Sec. 60-741.80, the last two sentences of paragraph (a) are 
revised to read as follows:


Sec. 60-741.80  Recordkeeping.

    (a) * * * Where the contractor has received notice that a complaint 
of discrimination has been filed, that a compliance evaluation has been 
initiated, or that an enforcement action has been commenced, the 
contractor shall preserve all personnel records relevant to the 
complaint, compliance evaluation or action until final disposition of 
the complaint, compliance evaluation or action. The term ``personnel 
records relevant to the complaint, compliance evaluation or action'' 
would include, for example, personnel or employment records relating to 
the aggrieved person and to all other employees holding positions 
similar to that held or sought by the aggrieved person and application 
forms or test papers completed by an unsuccessful applicant and by all 
other candidates for the same position as that for which the aggrieved 
person applied and was rejected.
* * * * *
    15. In Sec. 60-741.81, the first sentence is revised to read as 
follows:


Sec. 60-741.81  Access to records.

    Each contractor shall permit access during normal business hours to 
its places of business for the purpose of conducting on-site compliance 
evaluations and complaint investigations and inspecting and copying 
such books and accounts and records, including computerized records, 
and other material as may be relevant to the matter under investigation 
and pertinent to compliance with the act or this part. * * *
[FR Doc. 00-25774 Filed 10-11-00; 8:45 am]
BILLING CODE 4510-45-P`