Last month, the federal Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) announced that it will begin issuing Predetermination Notices (PDNs) to federal contractors undergoing audits of their affirmative action plans, or those involved in other OFCCP investigations. OFCCP announced the change as part of its effort to increase transparency in its dealings with the federal contracting community.

A PDN informs a contractor of the agency’s preliminary findings of discrimination, and it gives the employer the ability to respond before a final determination is issued. Previously, PDNs have only been issued in certain cases involving claims of systemic discrimination. Under the new initiative, PDNs will be provided in all individual and systemic discrimination investigations.

This change should be good news for federal contractors. It gives contractors the ability to discuss the findings with OFCCP prior to finalization and to resolve mistakes or misunderstandings before the results of the investigation become final. OFCCP also announced its intent to take additional steps to increase transparency, possibly including greater oversight of investigations by regional and national officials before issuing final determinations.