Over the past few years, the Office of Federal Contract Compliance Programs (OFCCP) began requiring existing federal supply and service contractors and subcontractors to annually certify that they have developed and maintained affirmative action programs for each establishment or functional unit. New contractors have 120 days to develop and implement their affirmative action programs. At least for the time being federal construction contractors that are not also supply and service contractors remain exempt from the certification requirement.
Many companies wonder what an AAP is. To answer that question, an AAP is a plan or program that outlines a federal contractor or subcontractor’s efforts to provide equal employment opportunities and generally support the advancement of employees regardless of gender, race, disability or veteran status. The written document of the plan and policies will guide the company forward over the next year.
Formal affirmative action plans are only required for federal contractors and subcontractors. There are additional conditions set forth by OFCCP, which oversees federal contractor compliance. Their conditions include all non-construction federal contractors or subcontractors who:
- Have 50 or more employees;
- Are within 120 days from the start of the federal contract;
- Have a federal contract or subcontract of at least $50,000;
- Have government bills of lading totaling at least $50,000 in any 12 months;
- Serve as a depository of federal funds in any amount;
- Or are a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes.
According to the OFCCP, contractors should employ internal audits and reporting systems to keep track of relevant employee demographic information, monitor anti-discrimination initiatives, and analyze the effectiveness of any affirmative action plan.
If you need assistance preparing your written affirmative action plan, contact the MBA’s HR Services Division today at 814/833-3200, 800/815-2660 or hrservices@mbausa.org.
Tammy Toman, JD, PHR,
is vice president and employment counsel at the Manufacturer & Business Association. Contact her at 814/833-3200, 800/815-2660 or ttoman@mbausa.org.
