White House Budget Released: EEOC Will Absorb OFCCP

Blog Post created by 1002028 on May 30, 2017

Many prognosticators have been speculating whether the OFCCP will survive the Trump Administration's efforts to reduce regulatory burdens on employers.  More recently speculation had been growing that the OFCCP would merge into the EEOC.  Two recent developments support these speculations.  First, a recent report from the Heritage Foundation recommends that OFCCP be merged into the Equal Employment Opportunity Commission (EEOC).  According to the Heritage Foundation report the EEOC and OFCCP are redundant:  "Taxpayers should not fund two separate and duplicative anti-discrimination agencies, one for federal contractors and one for all employers."


Second on Tuesday May 23rd, the Administration’s released it's fiscal year 2018 budget.  In the proposed budget, the OFCCP would see its budget reduced from $105 million to approximately $88 million and have its operations merged with those of the EEOC.  Funding for the EEOC is proposed to essentially stay the same at roughly $364 million.  


When asked if such a merger could work, Ogletree Deakins Attorney Gretchen Ewalt commented, "it will be pure chaos."  There would certainly be layoffs, turf battles, etc.  For a good read on the effects of a merger, read this article.  Business and employee advocacy groups both have decried the merger so it will be interesting to see if it actually takes place.


CAI will keep you informed as more news emerges.  Don't hesitate to contact CAI's Advice & Resolution team if you have any questions.