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U.S. Department of Labor

Office of Federal Contract Compliance Programs 

Technical Assistance Guide for Federal Supply and Service Contractors   

August 2009

 

Technical Assistance Guide

for

Federal Supply and Service Contractors

 

 

This Technical Assistance Guide is designed to assist Federal contractors and subcontractors in complying with the Federal laws and regulations that prohibit Federal contractors from discriminating in employment, and require that they undertake affirmative action to ensure equal employment opportunity in their workforces. It is intended for Federal contractors who have non-construction contracts -- also known as Supply and Service contractors. This Technical Assistance Guide is also for subcontractors who furnish supplies or services that are necessary to perform a Federal contract. The obligations of Federal contractors and subcontractors who hold construction contracts differ in significant ways and are covered in a separate guide.

 

The contents of this guide have been designed to assist supply and service contractors and subcontractors in:

 

 

 

 

  

This Technical Assistance Guide does not create new legal requirements or change current legal requirements. Instead, it reflects the views of OFCCP and is intended to serve as a basic resource document on OFCCP-administered laws. The legal requirements related to equal employment opportunity that apply to Federal supply and service contractors are contained in the statutes, executive orders, and regulations cited in the Guide. Every effort has been made to insure that the information contained in the Guide is accurate and up to date.  

 

 

 


Table of Contents

 

Overview of OFCCP Mission and Program…………………………………………………. 1

 

 

Overview of Laws Administered by OFCCP………………………………………………... 2

 

 

Frequently Asked Questions………………………………………………………………….. 4

 

Overview of Supply and Service Contractor Responsibilities………………………….. 11

  

Executive Order 11246 Affirmative Action Program Elements…………………………. 13  

Section 503 and VEVRAA Affirmative Action Program Elements……………………… 30

Additional Requirements………………………………………………………………………. 43

Preparing for a Compliance Evaluation……………………………………………………... 58

Recognizing Best Practices…………………………………………………………………… 65 

 

Appendices

Appendix A: Sample Executive Order 11246 Affirmative Action Program Documents

Appendix B: Sample Section 503 & VEVRAA Affirmative Action Program Documents

 

Appendix C: Glossary of Terms

 

Appendix D: Adverse Impact Determinations 

Appendix E: National Office Help Desk

 

Appendix F: OFCCP National and Regional Offices

 

Appendix G: Small Business Administration’s Ombudsman Program 

Overview of OFCCP Mission and Program

 

The Office of Federal Contract Compliance Programs (OFCCP) administers and enforces three equal employment opportunity laws that apply to Federal contractors and subcontractors that supply goods and services to the Federal Government:

 

 

The OFCCP monitors compliance with these laws primarily through compliance evaluations, during which a compliance officer examines the contractor's affirmative action efforts and employment practices. The OFCCP also investigates complaints filed by individuals alleging employment discrimination on the basis of race, color, sex, religion, national origin, disability or status as a protected veteran.

 

The OFCCP encourages voluntary compliance and provides various kinds of technical assistance to aid contractors in their compliance efforts. The OFCCP maintains a National Office in Washington, DC, and six regional offices, each with several district offices, throughout the United States.

 

See Appendix F for the addresses and phone numbers of key OFCCP offices. For additional information about OFCCP you can access the agency’s website at: http://www.dol.gov/ofccp.

OFCCP Responsibilities 

The OFCCP carries out its enforcement responsibilities by:

 


Overview of Laws Administered by OFCCP

 

The OFCCP is responsible for enforcing Federal laws and regulations that prohibit discrimination and require Federal contractors and subcontractors to take affirmative action to ensure that all individuals have an equal opportunity for employment without regard to race, color, religion, sex, national origin, disability or status as a protected veteran. The OFCCP is responsible for administering:

 

 

 

 

 

 

Each of the three laws, the Executive Order, Section 503 and VEVRAA, prohibit retaliation because an individual has engaged in or may engage in any of the following: 1) filing a complaint; 2) assisting or participating in an investigation, compliance evaluation, hearing or any other activity related to EEO laws; opposing any act or practice of a contractor that is unlawful under the EEO laws; or exercising any other right protected by the EEO laws. See 41 CFR 60-1.32, 60-300.69, and 60-741.69.  

OFCCP shares enforcement responsibilities with other Federal agencies in the administration of the following laws:

 

 

 

    


Frequently Asked Questions

 
Who is a Federal contractor? 
A Federal contractor is any person who holds a “Government contract.” The implementing regulations at 41 CFR 60-1.3 define "Government contract" as:
any agreement or modification thereof between any contracting agency and any person for the purchase, sale or use of personal property or nonpersonal services..  
"Personal property" includes supplies and goods, as well as contracts for the use of real property such as lease agreements. "Nonpersonal services" includes utilities, construction, transportation, research, insurance, and fund depository. Typically, Government contracts are for the sale of supplies or services to the Government, but contracts to lease or buy from the Federal Government are covered as well.
 
Excluded from the definition of Government contract are employment agreements and federally assisted construction agreements. 41 CFR 60-1.3, 60-250.2(i), 60-300.2(i) and 60-741.2(i).
 
 
 
Who is a Federal subcontractor? 
A Federal subcontractor is any person who holds a "subcontract," which the regulations define as any agreement or arrangement between a contractor and any person (in which the parties do not stand in the relationship of an employer and employee):
 
(1) For the purchase, sale or use of personal property or nonpersonal services which, in whole or in part, is necessary to the performance of any one or more [Government]contracts; or
 
(2) Under which any portion of the contractor's obligation under any one or more contracts is performed, undertaken or assumed.
41 CFR 60-1.3, 60-250.2(l), 60-300.2(l) and 60-741.2(l).

 


Who is a “supply and service” contractor and/or subcontractor? 
The terms “supply and service contractor” and “supply and service subcontractor” are used by OFCCP to identify those contractors and subcontractors who hold Federal non-construction contracts or subcontracts as defined above. This Technical Assistance Guide applies only to supply and service contractors and subcontractors. Different rules and regulations apply to Federal construction contractors and subcontractors. For further information about their requirements, please consult OFCCP’s Technical Assistance Guide for Federal Construction Contractors, or visit OFCCP’s web site at: http://www.dol.gov/ofccp/TAguides/ctaguide.htm.  
 
Which supply and service contractors and subcontractors are subject to OFCCP administered laws? 
Executive Order 11246: A supply and service contractor or subcontractor is covered under Executive Order 11246 if it:
  • Holds a Government supply and service contract or subcontract of over $10,000; or
 
  • Holds multiple Government supply and service contracts or subcontracts of less than $10,000 that, when added together total more than $10,000 within any 12 month period or can reasonably be expected to total more than $10,000 during that time; or
 
  • Holds a Government contract or subcontract for an indefinite quantity unless the amount to be ordered in any year under such contract will not exceed $10,000; or
 
  • Holds a Government bill of lading in any amount; or
  • Serves as a depository of Federal funds in any amount; or
 
  • Is an issuing and paying agent for U.S. savings bonds in any amount.
 

 


 

 
Section 503: A supply and service contractor or subcontractor is covered under Section 503 if it:
 
  • Holds a Government supply and service contract or subcontract in excess of $10,000; or
 
  • Holds a Government contract or subcontract for an indefinite quantity unless the amount to be ordered in any year under such contract will not exceed $10,000.
VEVRAA: A supply and service contractor or subcontractor is covered under VEVRAA if it: 
  • Holds a Government supply and service contract or subcontract of $100,000 or more (or a current contract of $25,000 or more entered into prior to December 1, 2003);or
  • Holds a Government contract or subcontract for an indefinite quantity unless the amount to be ordered in any year under such contract will not exceed $100,000 (or $25,000 or more if the contract was entered into prior to December 1, 2003).
 

 

 

Are all supply and service contractors and subcontractors covered if their contracts meet the above specified dollar thresholds?
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
For the most part contracts meeting the specified dollar thresholds are covered, but there are a few exceptions. The regulations implementing Executive Order 11246, Section 503, and VEVRAA specify the following limitations on coverage:
 
Contracts involving work performed outside the United States -- Under Executive Order 11246, such contracts are exempt from coverage if the employees performing the work were not recruited within this country. Section 503 and VEVRAA apply only to “employment activities within the United States,” which includes actual employment within the United States and contractor decisions regarding applicants and employees recruited within the United States for transfer or employment abroad.
 
Contracts with State or local governments -- An agency, instrumentality or subdivision of a State or local government is not subject to the requirements of the EEO clauses unless the specific agency, instrumentality or subdivision participates in work on or under the contract. State or local agencies participating in work on or under the contract may have limited AAP requirements as well. See: 41 CFR 60-1.5(b), 60-250.4(a)(4), 60-300.4(a)(4), and 60-741.4(a)(5).
 
Contracts with religious entities or religiously affiliated educational institutions – Religious corporations, associations, or affiliated colleges, universities or other educational institutions may hire employees of a particular religion without violating Executive Order 11246. See: 41 CFR 60-1.5(a)(5).
 
Contracts involving work on a near an Indian reservation - Contractors are permitted to extend a preference in employment to Indians for work performed on a near an Indian reservation without violating Executive Order 11246. See: 41 CFR 60-1.5(a)(7). 
In addition, the Deputy Assistant Secretary (DAS) for OFCCP may grant exemptions for specific contracts or categories of contracts when the DAS determines that “special circumstances” in the national interest so require. In appropriate circumstances, exemptions also may be granted by the DAS for facilities not connected with the Government contract. 41 CFR 60-1.5, 60-250.4, 60-300.4 and 60-741.4. For additional information regarding contracts and coverage, contact the local OFCCP office.
 
 
Are the EEO and affirmative action obligations of the supply and service contractor specified in the contract documents?
Yes. Equal employment opportunity and affirmative action are integral elements of the contractor's agreement with the Government. Executive Order 11246, Section 503, and VEVRAA require that every non-exempt Government contract and subcontract include Equal Employment Opportunity (EEO) clauses that specify the nondiscrimination and affirmative action obligations each contractor or subcontractor assumes as a condition of its Government contract or subcontract.
 
The EEO clause published at 41 CFR 60-1.4(a) specifies the obligations and duties imposed under Executive Order 11246. The EEO clauses found at 41 CFR 60-250.5, 60-300.5 and 60-741.5, contain the obligations imposed under VEVRAA and Section 503, respectively.
 
 
The EEO clauses may be included in the Government contract expressly, or incorporated by reference. Further, by operation of law, the clauses are deemed to be a part of every non-exempt Government contract and subcontract, even if they are not directly written into or incorporated by reference in the contract documents.
 
Additionally, covered contractors and subcontractors must comply with these laws and regulations at all work sites. For example, a company with a supply and service contract in California must not only comply with OFCCP requirements at the California facility where the service or product is being performed or manufactured, but must also comply with the OFCCP requirements at all of the company’s facilities throughout the United States. In other words, one contract covers all of a contractor’s facilities.
 
What is an affirmative action program?
An affirmative action program (AAP) is a management plan for ensuring equal employment opportunity. An AAP sets forth the policies, practices, and procedures that the contractor will implement to ensure that all qualified applicants and employees are receiving equal opportunity in recruitment, selection, advancement, and other benefits and privileges of employment. An AAP is developed by the contractor (with technical assistance from OFCCP if requested) and assists the contractor in self-auditing of its workforce and employment activities. It is kept on file and implemented by the contractor; and it is submitted to OFCCP, if OFCCP requests it for the purpose of conducting a compliance evaluation. Written AAPs are required under each of the three OFCCP-administered laws.
 
 
Which contractors/
subcontractors must develop AAPs?
If you are a contractor/subcontractor with 50 or more employees and
  • Hold a non-exempt Government contract or subcontract of $50,000 or more; or
  • Hold Government bills of lading of $50,000 or more, or that could reasonably be expected to total $50,000 or more in a year; or
  • Serve as a depository of Federal funds in any amount; or
  • Is an issuing and paying agent for U.S. savings bonds in any amount;
You are required to develop and maintain an Executive Order AAP.
 
If you are a contractor/subcontractor has 50 or more employees and
 
  • Hold a non-exempt Government contract or subcontract of $50,000 or more;
 
You are required to develop and maintain a Section 503 AAP.
 
If you are a contractor/subcontractor has 50 or more employees and
 
  • Hold a non-exempt Government contract or subcontract of $100,000 or more; or
 
  • Hold a non-exempt Government contract that was entered into before December 2003, and not since modified, of $50,000 or more;
 
You are required to develop and maintain a VEVRAA AAP. 
You are required to develop and maintain the appropriate AAPs for each of your establishments, and to update them annually. If you are a new Government contractor subject to the AAP requirement, you must develop the prescribed AAPs within 120 days from the start of the contract or subcontract.
Must I prepare a separate AAP for each law?
No. You have several options for preparing the AAPs prescribed by the regulations. You may:
  1. Develop a separate document for each law, (i.e., an Executive Order AAP; a Section 503 AAP and a VEVRAA AAP); or
  2. Develop a single document that addresses the requirements of all the laws you are subject to; or
  3. Develop two documents -- an Executive Order 11246 AAP and a second AAP that addresses Section 503 and, if applicable, VEVRAA.
Many contractors find option #3 the most convenient, as the AAP elements of Section 503 and VEVRAA are similar to each other.
 
 
 
What is an "establishment"?
 
The regulations require that a contractor develop an AAP for each establishment (41 CFR 60-1.40(a), 60-2.1 (b),
60-250.40 (b), 60-300.40 (b), and 60-741.40 (b)). OFCCP defines an establishment as a facility or unit that produces goods or services, such as a factory, office, store or mine. In most instances, the unit is a physically separate facility at a single location.
 
 
Do I have to prepare separate AAPs for each establishment?
 
Usually separate AAPs are required for each establishment. In appropriate circumstances, an establishment may include several facilities located at two are more sites, so long as the facilities are in the same labor market or recruiting area. The determination as to whether it is appropriate to group facilities in one AAP is made on a case-by-case basis. If you have questions regarding whether or not multiple establishments may be covered in a single AAP, you should contact your local OFCCP office.
 
If a contractor wishes to establish an AAP other than by establishment, the contractor may reach an agreement with OFCCP to develop and use AAPs that are based on functional or business units. For additional information on agreements to use functional AAPs see OFCCP’s March 21, 2002, directive regarding Functional Affirmative Action Programs available online at http://www.dol.gov/ofccp/regs/compliance/directives/dirindex.htm.
 

 

Note: In the following sections of the Technical Assistance Guide, the term “contract” generally refers to both a contract and subcontract; the term “subcontract” is not used unless it is necessary to the context. Similarly, the term “contractor” refers to both contractors and subcontractors, unless specified otherwise.
Overview of Supply and Service Contractor Responsibilities

 

Covered Federal supply and service contractors are prohibited from engaging in employment discrimination and are required to take affirmative action to ensure that applicants (including Internet applicants) and employees are treated without regard to race, color, religion, sex, national origin, disability, or status as a protected veteran. All personnel activities are covered by these requirements, including but not limited to:

 

Hiring;

Rates of pay or other compensation;

Fringe benefits;

Promotions;

Upgrades;

Recruitment;

Training;

Transfers;

Layoffs;

Terminations;

Returns from layoff; and

Demotions

 

Other requirements include:

 

 

Depending on the size of the supply and service contractor and the type of relationship it has with the Federal Government, certain covered supply and service contractors may have additional responsibilities, such as the following:

 

 

Executive Order 11246

Affirmative Action Program Elements

 

The objectives of the Executive Order 11246 Affirmative Action Program (Executive Order AAP) are to:

 

 

 

The regulations implementing Executive Order 11246 prescribe the required elements of an AAP, and specify what must be included in a written AAP. Provided in the following pages are descriptions of the required elements and references to the corresponding section in the Sample AAP at Appendix A. The descriptions of compliance actions are intended to illustrate possible compliance activities but should not be viewed as contractor performance mandates. You are encouraged to "personalize" your AAP to depict actions you have taken to comply with the letter and spirit of the regulatory EEO requirements, and to describe innovative strategies you have employed to enhance the success of your Program.

 

Contractors and subcontractors are required to: 

1. Construct an organizational profile of the company’s workforce using an “organizational display” or “workforce analysis” that provides detailed data reflecting staffing patterns within the establishment.  

2. Perform a job group analysis that combines jobs at the establishment with similar content, wage rates, and opportunities to form job groups and facilitates the comparison of the representation of minorities and women in the company’s workforce with the estimated availability of minorities and women qualified for employment.

 

3. Perform a utilization analysis that includes the placement of the contractor’s employees into the job groups, the determination of the availability for employment of minorities and women for the job groups, and a comparison of their incumbency in the job groups to their availability.

 

4. Establish placement goals to serve as reasonably attainable objectives and to measure progress toward achieving equal employment opportunity.

 

5. Designate responsibility to direct, manage, and ensure the implementation of their affirmative action program.

 

6. Identify problem areas by organizational unit and job group.

 

7. Develop and execute action-oriented programs designed to eliminate problems and to accomplish stated goals and objectives.

 

8. Design and implement an internal audit and reporting system to measure the effectiveness of the total affirmative action program.

 

9. Maintain the analyses and support data used to evaluate and identify problem areas.

 

 

Note: The following guidance is intended to explain, but not add to or modify, the requirements contained in 41 CFR Part 60.  

 
 
Executive Order 11246
Affirmative Action Program
Element #1
 
 
 
 
Contractors and subcontractors must construct an organizational profile of their workforce using either an “organizational display” or “workforce analysis” that provides detailed data reflecting staffing patterns within the establishment. [41 CFR 60-2.11]
 

 

An organizational profile is a depiction of the staffing pattern within an establishment. The profile displays data that will assist the company in identifying where in the company’s workforce women or minorities are underrepresented or concentrated. The contractor must use either an “organizational display” or “workforce analysis” as its organizational profile. Each is described below, and the Sample AAP reference is provided:

 

Organizational Display – An illustration is provided in Appendix A at page 3.   

An organizational display is a detailed chart of the contractor’s organizational structure. For each company organizational unit, the organizational display must indicate the following: 

 

Workforce Analysis – An example is provided in Appendix A at pages 4-8.   

A workforce analysis is a listing of each job title ranked from the lowest paid to the highest paid within each department or similar organizational unit, including departmental or unit supervision. The information in the workforce analysis is derived from payroll records, organizational charts and collective bargaining agreements. Contractors are required to record four categories of data: information by job title, wage rate or salary range, department or organizational unit and lines of progression. An acceptable workforce analysis is one that contains the following:

 

 

 

 

 

 

Constructing an organizational profile provides a picture of employment patterns at your establishment. It is useful for identifying areas where women and/or minorities are concentrated and where they are underrepresented or absent. It may indicate where there are potential problem areas and possible discrimination or inadequate affirmative action. The term "concentration" means that minority groups and/or women are found in a particular unit (job area) of a contractor's workforce in numbers substantially greater than would be expected in terms of their overall representation in the contractor's workforce, or in a relevant unit of that workforce. The term "underrepresentation" means the opposite, i.e., minority groups and/or women are found in a particular unit of a contractor's workforce in numbers substantially fewer than would be expected in terms of their overall representation in the contractor's workforce or relevant unit of that workforce.

 

For example, when a manufacturing contractor with three entry-level positions in its Fabrication and Packaging Department constructs an organizational profile, it reveals that the General Laborer position has 8 male and no female incumbents; the Fabrication Machine Operator position has 15 male and 85 female incumbents; and the Packaging Machine Operator position has 8 male and 4 female incumbents. All three entry level positions require no previous work experience, but the General Laborer and Packaging Machine Operator positions start at $7.50 per hour, while the Fabrication Machine Operator position starts at only $7.00 per hour. In a Department that is 74% female, one would expect to find substantial numbers of women employed in all three jobs. However, the data show that women hold 85% of "lower-paying" Fabricator Machine Operator positions, but only 20% of the "higher-paying" General Labor and Packaging Operator jobs. There are no women employed as General Laborers, and only one third of the Packaging Machine Operators are women. Therefore, the organizational profile has revealed a potential problem in that women are concentrated in the lower paying entry-level position, and underrepresented in the General Laborer and Packaging Machine Operator positions.

 

In the above example, it is possible that the employment pattern is the result of nondiscriminatory factors. The existence of a concentration or underrepresentation does not always mean that discrimination has occurred; it is only an indicator that further investigation is warranted.

 

Consequently, the contractor should conduct an analysis of its personnel practices and procedures to see why this concentration or potential discrimination has occurred, by asking questions such as:

 

 

Depending on the results of its analysis, the contractor may need to take corrective action to remedy the effects of discrimination against women; and to take actions to ensure that in the future all qualified applicants have an equal opportunity to compete for the higher paying entry-level positions.

 

  

 
 
Executive Order 11246
Affirmative Action Program
Element #2
 
 
 
 
Contractors and subcontractors are required to perform a job group analysis by combining jobs at the establishment with similar content, wage rates, and opportunities to form job groups. [41 CFR 60-2.12] 
 

 

The job group analysis is the first step in the contractor’s comparison of the representation of minorities and women in its workforce with the estimated availability of minorities and women qualified to be employed. You must sort the various jobs at your establishment into job groups. A job group is a collection of jobs in an organization with similar job content (field of work and/or skill level), similar promotional opportunities and similar compensation. The job groups must be developed to fit the unique characteristics of each organizational unit, taking into account the size, type and complexity of the work performed. An example is provided in Appendix A at pages 9-10.

 

Jobs within a job group usually reflect similar duties, skill levels and compensation. In determining which jobs to gather together for job groups, consider the following:

 

 
Executive Order 11246
Affirmative Action Program
Element #3
 
 
Contractors and subcontractors are required to perform a utilization analysis that includes the placement of the contractor’s employees into the job groups, the determination of the availability for employment of minorities and women, and a comparison of their incumbency in the job groups to their availability. [41 CFR 60-2.13 – 60-2.15]
 
 

The utilization analysis is a series of separate but interrelated analyses used to identify whether minorities or women are being employed at a rate that would be expected based upon their availability for employment. The utilization analysis includes the placement of incumbents into job groups, the determination of the availability for employment of minorities and women, and a comparison of their incumbency in the job groups to their availability. You must undertake the utilization analysis in order to identify whether there is underutilization of minorities or women in any of the job groups; and, if there is, to establish placement goals designed to cure the underutilization. Your AAP will be used to record progress toward meeting these goals. An example is provided in Appendix A at pages 11-13.  

Placement of incumbents in job groups (41 CFR 60-2.13)

 

Having combined the job titles for the job group analysis, you must separately state the percentage of minorities and the percentage of women you employ in each job group.

 

Determining availability (41 CFR 60-2.14) 

After individual jobs have been aggregated into job groups, the next step is to determine the availability of women and minorities for those job groups. Availability is a percentage estimate of the women and minorities who have the skills required to perform the jobs within the job groups. To determine the availability percentages, contractors are required to consider two factors. These factors reflect availability outside the contractor’s workforce (such as people in the immediate labor area or reasonable recruitment areas), and availability inside the contractor’s own workforce (such as people who are qualified and available via transfer, promotion, or training). Contractors typically rely on Census data, state employment service data, and college graduation data in developing their external availability factors, and on their own workforce numbers for developing internal availability factors.

 

Both factors must be considered, but contractors may weight each of the two factors according to each factor’s relevance to the job group in question. A “zero” weight is possible depending on the factor and the job group in question. For example, with job groups involving professionals such as engineers or accountants, contractors generally give little or no weight to factors such as population data or overall workforce data. Contractors must calculate percentages for both factors as described below.

 

1) Percentage of minorities or women with requisite skills in the reasonable recruitment area. (refer to 41 CFR 60-2.14(c)(1)) This factor generally carries significant weight for complex or high level positions. The “reasonable recruitment area” represents the area from which the contractor usually seeks or reasonably could seek workers for a particular job group, and will vary depending on the types of jobs in the job group. For example, it may coincide with the immediate labor area for unskilled entry-level positions, or it may cover a larger area (state, region or nation) for managerial or professional positions. Generally speaking, the more complex a job or the higher the position in the organizational structure it occupies, the broader the recruitment area becomes. Contractors must use the most current and discrete statistical data available. Data sources for this factor may include Census data, state employment service data, and graduation data from applicable training institutions.

 

2) Percentage of minorities or women among those promotable, transferable, and trainable within the contractor's organization. (refer to 41 CFR 60-2.14(c)(2)) This is the percentage of minorities and women who are in feeder job groups and who are (at the start of the AAP year) or who will become (during the AAP year) promotable or transferable from those job groups into the job group under consideration. Data sources for this factor will reflect the contractor’s own workforce numbers.

 

Comparing incumbency to availability (41 CFR 60-2.15) 

After a contractor has formulated job groups and has determined the minority and female availability percentages for each job group, you must compare the actual utilization of minorities and women in each job group with their estimated availability, and identify those job groups where women and/or minorities the percentage of minorities or women employed is less than would reasonably be expected given their availability.

 

The term “underutilization” is used to refer to the presence of fewer minorities or women in a particular job group than would reasonably be expected given their availability. Contractors use a number of methods to determine whether their actual representation rates are lower than would reasonably be expected. Some contractors declare underutilization when there is any difference between the availability percentage and the utilization percentage, while some conclude that underutilization exists when the number of minority or female incumbents is at least one whole person lower than the number predicted by the availability percentages. Other contractors use an “80 percent” rule of thumb and declare underutilization only when the actual representation is less than 80 percent of availability (which is the expected representation). Still others use a “two standard deviation” rule and test whether the difference between the actual and expected representation is statistically significant. Any reasonable method, uniformly applied, is acceptable to OFCCP.

  

 
Executive Order 11246
Affirmative Action Program
Element #4
 
 
When the percentage of minorities or women in a job group is less than would be reasonably expected given their availability, contractors are required to establish placement goals, which also serve as reasonably attainable objectives and to measure progress toward achieving equal employment opportunity. [41 CFR 60-2.16] 

 

In performing the utilization analysis just described contractors may have some job groups where there is underutilization. Regardless of the method employed to make this determination, in those job groups where underutilization is identified the contractor must establish a placement goal for minorities and/or females into that job group. Placement goals are generally established as a percentage of the annual placement rate, (e.g., a goal of hiring women for 25 percent of the vacancies in the job group), and are used to measure progress toward achieving equal employment opportunity. The placement goal established must be at least equal to the availability percentage for women and/or minorities, as applicable, for the underutilized job group. Contractors may establish higher goals if they desire. Although a contractor is required to make good faith efforts to meet its goals, the goals are not quotas and no sanctions are imposed solely for failure to meet them. An example is provided in Appendix A at page 13.

 

The following factors explain the difference between permissible goals, on the one hand, and unlawful preferences, on the other:

 

 
 
Executive Order 11246
Affirmative Action Program
Element #5
 
 
Contractors and subcontractors must designate a specific person(s) to direct, manage and ensure the implementation of their affirmative action program. [41 CFR 60-2.17(a)]

 

As part of the affirmative action program, a contractor/subcontractor must designate someone to direct or manage its affirmative action program, and include in the written AAP a statement that identifies that person or persons, along with a description of their duties. Ultimately, the head of the company is responsible for the implementation of the company’s AAP. However, he or she will probably designate a management official at each facility or establishment to serve as the “affirmative action officer,” with the responsibility for carrying out the contractor's AAP implementation and EEO commitments. A sample statement is provided in Appendix A at pages 14-15.

 

 
Executive Order 11246
Affirmative Action Program
Element #6
 
 
Contractors and subcontractors must identify problem areas by organizational unit and job group. [41 CFR 60-2.17(b)]

 

As part of the affirmative action program, a contractor/subcontractor must perform an in-depth analysis of its total employment process to identify any problem areas. An example is provided in Appendix A at page 16.

 

Specifically, you must evaluate:

 

 

To aid in identifying any problem areas by organizational unit and job group, contractors may find it useful to: 1) perform an analysis, such as the Impact Ratio Analysis (IRA), that measures how the contractor’s own employment processes affect minorities and women; and 2) use the Job Area Acceptance Range (JAAR) analysis to identify any areas of minority or female concentration and underrepresentation.

 

The AAP must list the problem areas identified and the actions or programs that will be implemented to correct them.  

 
Executive Order 11246
Affirmative Action Program
Element #7
 
 
Contractors and subcontractors must develop and execute action-oriented programs designed to eliminate identified problems and to accomplish stated goals and objectives. [41 CFR 60-2.17(c)]

 

The content of this section of the AAP depends upon the nature of the problems identified through the contractor's in-depth analyses of personnel practices, policies, and procedures. Once problem areas have been identified, a contractor must develop and implement a program to eliminate those problems. Action-oriented programs should be specific and result-oriented to accomplish the aims for which they are created. “Specific” means describing what action(s) is to be taken, who is responsible for performing the action(s), and when the action(s) will be accomplished. “Result-oriented” means that proper execution of the program will likely lead to an increase in minority and/or female participation in the department, job group, training program, or other identified problem area. The action-oriented programs must be sufficient enough that if successfully implemented, their objective will be achieved. These programs must be described in the AAP. Examples of the types of programs and initiatives that contractors have found effective in addressing specific problems include mentoring partnerships, adopting schools, providing trainers and equipment to teach specific skills at vocational or technical schools, and internship programs with minority colleges and universities. An example is provided in Appendix A at pages 17-18. 

 
Executive Order 11246
Affirmative Action Program
Element #8
 
 
Contractors and subcontractors must design and implement an internal audit and reporting system to measure the effectiveness of their total affirmative action program. [41 CFR 60-2.17(d)]
 

 

An acceptable internal audit and reporting system is one that allows the contractor to measure the effectiveness of its total program. An example is provided in Appendix A at pages 19-20. 

An internal audit and reporting system should include:

 

 

An AAP should contain a narrative description of every aspect of the internal audit and reporting system. The description should specify the frequency of reports and audits and state that corrective actions, if necessary, will be taken as problems are revealed. The description should also designate the contractor officials responsible for taking corrective actions. Lastly, contractors and subcontractors should indicate how and when program results and effectiveness will be reviewed with all levels of management in the company.

  

 
Executive Order 11246
Affirmative Action Program
Element #9
 
 
Contractors and subcontractors are required to maintain the analyses and support data used to evaluate and identify problem areas. [41 CFR 60-2.17(b)(2) and Part 60-3]
 

 

Support Data includes data and information reflecting personnel activity including, but not limited to, applicant flow, hires, terminations, promotions, and other personnel actions that have been used by the contractor to determine whether there are selection disparities. Support data also includes information that indicates the impact of tests and other selection procedures on employment opportunities. Examples are provided in Appendix A at pages 21-29.  

As previously noted, OFCCP will accept AAPs and supporting records that reflect the race, ethnicity, and job categories outlined in either 41 CFR Part 60-2 or the EEO-1 Report. Contractors electing to use the EEO-1 Report categories will not be expected to produce analyses of the impact of employee selection procedures on groups comprised of individuals identified as belonging to more than one race; but contractors may be asked for other employment records they may have relating to such individuals. Such records may include any information regarding the reallocation of individuals identified as belonging to more than one race into single race categories. Additional guidance regarding the use of race/ethnicity data is located at http://www.dol.gov/ofccp/regs/compliance/EEO1_Interim_Guidance.htm.

  

Section 503 and VEVRAA

Affirmative Action Program Elements

 

 

Section 503 and its implementing regulations require that contractors with 50 or more employees and a non-exempt Government contract of $50,000 or more must prepare a written AAP for individuals with disabilities. VEVRAA and its implementing regulations require that a written affirmative action program for covered veterans must be prepared by contractors with 50 or more employees and a non-exempt Government contract of $100,000 ($50,000 for a contract entered into before December 1, 2003, and subject to the Part 250 regulations). Provided in the following pages are descriptions of the required AAP program elements and references to the corresponding sections in the Sample AAP at Appendix B.

 

Affirmative action programs that are required under Section 503 and VEVRAA do not require numerical placement goals. However, like the Executive Order AAP, the focus of the Section 503 and VEVRAA AAPs is on taking affirmative action to establish a work environment free from barriers to equal employment opportunities, and to recruit, train, and promote qualified individuals protected under these laws.

 

The prescribed AAPs for individuals with disabilities and protected veterans may be developed separately or combined. Many contractors prepare a combined VEVRAA and Section 503 written AAP because the elements that must be included in each are similar. The required elements of the VEVRAA and Section 503 written AAP are described below, with a brief explanation of actions a contractor might take to comply with the element. Any descriptions of compliance actions are intended to illustrate possible compliance activities but should not be viewed as contractor performance mandates. Contractors are encouraged to "personalize" their affirmative action program to depict actions they have taken (or plan to take) to comply with the letter and spirit of the regulatory EEO requirements, and to describe innovative strategies they have employed to enhance the success of their respective programs. 

Contractors and subcontractors are required to: 

  1. Develop an equal employment opportunity policy statement.

 

  1. Review their personnel processes.

 

  1. Conduct a review of physical and mental job qualifications.

 

  1. Make reasonable accommodations to the known physical and mental limitations of otherwise qualified individuals or veterans with disabilities.

 

  1. Develop and implement procedures to prevent harassment.

 

  1. Disseminate their EEO policy externally and perform outreach and positive recruitment.

 

  1. Disseminate their EEO policy internally.

 

  1. Design and implement an audit and reporting system.

 

  1. Designate a management official to direct and assume the responsibility for ensuring the implementation of their affirmative action program.

 

  1. Train their personnel to ensure that EEO and affirmative action program commitments are implemented.

 

 

 

Note: The following guidance is intended to explain, but not add to or modify, the requirements contained in 41 CFR Parts 60-250, 60-300 and 60-741.

   

 
Section 503 and VEVRAA
Affirmative Action Program
Element #1
 
 
Contractors and subcontractors must develop an equal employment opportunity policy statement. [41 CFR 60-250.44(a), 60-300.44(a) and 41 CFR 60-741.44(a)]
 
 

Covered contractors and subcontractors are required to:

 

  1. Adopt a policy of equal employment opportunity; and

  2. Include a statement of that policy in their written affirmative action program(s).

 

The contractor’s equal employment opportunity policy (EEO) statement should be signed by the top establishment official, dated, and updated annually. The policy statement should also identify the EEO coordinator by name, job title, location, and telephone number. Contractors must reaffirm their equal employment opportunity policies annually. The policy statement should include at least the following:

 

 

In addition to having the EEO statement in the VEVRAA and Section 503 AAP, this policy statement should be posted on company bulletin boards and communicated to all employees and applicants. A sample policy statement is provided in Appendix B page 1.  

 
Section 503 and VEVRAA
Affirmative Action Program
Element #2
 
 
Contractors and subcontractors must review their personnel processes. [41 CFR 60-250.44(b), 41 CFR 60-300.44(b), and 41 CFR 60-741.44(b)]
 
 

Contractors must review personnel practices to ensure that the qualifications of known protected veterans or individuals with disabilities are given proper consideration for job vacancies filled either by hiring or promotion, and for all training opportunities offered or available.

 

 

Suggested procedures for reviewing personnel practices are listed in Appendix C of 41 CFR Part 60-250 and Appendix C of 41 CFR Part 60-741. A sample statement is provided in Appendix B of this Guide at page 2. 

  

 
Section 503 and VEVRAA
Affirmative Action Program
Element #3
 
 
Contractors and subcontractors must conduct a review of physical and mental job qualifications. [41 CFR 60-250.44(c), [41 CFR 60-300.44(c) and 41 CFR 60-741.44(c)]
 
 

Contractors must provide and adhere to a schedule for the periodic review of all physical and mental job qualification standards to ensure that any qualification standard that would tend to screen out qualified individuals with disabilities or disabled veterans is job-related and consistent with business necessity. A sample review is provided in Appendix B at page 3. 

 

 
Section 503 and VEVRAA
Affirmative Action Program
Element #4
 
 
Contractors and subcontractors must make reasonable accommodation to the known physical and mental limitations of otherwise qualified individuals. [41 CFR 60-250.44(d), 41 CFR 60-300.44(d) and 41 CFR 60-741.44(d)]
 
 

Contractors must provide reasonable accommodation to the known physical or mental limitations of qualified applicants, employees with disabilities and disabled veterans unless the contractor can show that the accommodation would impose an undue hardship on the operation of its business. A sample statement is provided in Appendix B at page 4.

 

The term reasonable accommodation means:

 

Modifications or adjustments to the work environment, or to the manner or circumstances under which the position held or desired is customarily performed, that enable a qualified individual with a disability or a disabled veteran to perform the essential functions of that position; or 

Modifications or adjustments that enable the contractor's employee who is an individual with a disability or a disabled veteran to enjoy equal benefits and privileges of employment as are enjoyed by the contractor's other similarly situated employees who are not individuals with disabilities or disabled veterans; or

 

Modifications or adjustments to a job application process that enable a qualified applicant who is an individual with a disability or a disabled veteran to be considered for the position such applicant desires. This includes any accommodations that are needed to enable an applicant with a disability to use a contractor’s online or electronic application or testing system. It also includes providing an alternative means of applying or testing if there is not an accommodation that will enable the applicant with a disability to use the online or electronic system.

Reasonable accommodation may include, but is not limited to:

 

Making existing facilities used by employees readily accessible to and usable by individuals with disabilities and disabled veterans;

 

Job restructuring; part-time or modified work schedules; reassignment to a vacant position; acquisition or modification of equipment or devices; appropriate adjustment or modification of examinations, training materials, or policies; the provision of qualified readers or interpreters; and

 

Reassignment to a vacant position (for employees only).

 

For more information on reasonable accommodation, see Appendix A to 41 CFR 60-250, 60-300 and 60-741.  

 
Section 503 and VEVRAA
Affirmative Action Program
Element #5
 
 
Contractors and subcontractors must develop and implement procedures to prevent harassment. [41 CFR 60-250.44(e), 41 CFR 60-300.44(e) and 41 CFR 60-741.44(e)]
 
 

The contractor must develop a policy statement prohibiting harassment and include it its AAP. This statement should enumerate the specific procedures that have been or will be taken by the contractor to ensure that employees who have disabilities or who are protected veterans are not harassed because of their disability or status as a protected veteran. A sample statement is provided in Appendix B at page 5.

 

 
Section 503 and VEVRAA
Affirmative Action Program
Element #6
 
 
Contractors and subcontractors must disseminate their EEO policy externally and perform outreach and positive recruitment. [41 CFR 60-250.44(f), [41 CFR 60-300.44(f) and 41 CFR 60-741.44(f)]
 

 

The contractor/subcontractor is required to undertake appropriate outreach and positive recruitment that are reasonably designed to effectively recruit individuals with disabilities and protected veterans. A sample statement is provided in Appendix B at page 6.

 

Some suggested activities include:

 

 

 

 

 

 

The above list is not exhaustive; for more examples see 41 CFR 60-250.44(f), 41 CFR 60-300.44(f) and 741.44(f).  

 
Section 503 and VEVRAA
Affirmative Action Program
Element #7
 
 
Contractors and subcontractors must disseminate their EEO policy internally. [41 CFR 60-250.44(g), 41 CFR 60-300.44(g) and 41 CFR 60-741.44(g)]
 

 

A strong outreach program is ineffective without adequate internal support from supervisory and non-supervisory personnel. The contractor must design internal procedures to foster understanding, acceptance, and support of the contractor’s obligation to promote equal employment opportunity for individuals with disabilities and protected veterans. Some suggested activities to implement this element of the AAP include:

 

 

The above list is not exhaustive; for more examples see 41 CFR 60-250.44(g), 41 CFR 60-300.44(g) and 60-741.44(g). A sample statement is provided in Appendix B at page 7.  

 
Section 503 and VEVRAA
Affirmative Action Program
Element #8
 
 
Contractors and subcontractors must design and implement an audit and reporting system. [41 CFR 60-250.44(h), 41 CFR 60-300.44(h) and 41 CFR 60-741.44(h)]
 

 

An acceptable internal audit and reporting system is one that allows the contractor to measure the effectiveness of its total AAP program, including determining the extent to which the contractor’s objectives have been attained and specifying needed remedial action if they have not been attained. This includes analyses to ensure individuals with disabilities and protected veterans have not been discriminated against in the following employment activities:

 

 

An acceptable internal audit system should also include a review of the company’s online or electronic application systems to determine if they are accessible and to ensure that needed reasonable accommodations may be readily obtained.

An AAP should contain a narrative description of every aspect of the internal audit and reporting system. The description should specify the frequency of reports and audits and state that corrective actions, if necessary, will be taken as problems are revealed. The description should also designate the contractor officials responsible for taking corrective actions. Lastly, contractors and subcontractors should indicate how and when program results and effectiveness will be reviewed with the various levels of management in the company. A sample statement is provided in Appendix B at page 8. 

 
Section 503 and VEVRAA
Affirmative Action Program
Element #9
 
 
Contractors and subcontractors must designate a management official to direct and assume the responsibility for ensuring the implementation of their affirmative action program. [41 CFR 60-250.44(i), 41 CFR 60-300.44(i) and 41 CFR 60-741.44(i)]
 
 

A contractor or subcontractor must designate someone to direct or manage its affirmative action program, and include in the written VEVRAA and Section 503 AAP a statement identifying that person(s). A description of their duties should also be included in the AAP. Ultimately, the head of the company is responsible for the implementation of the company’s AAP. However, he or she will probably designate a management official at each facility or establishment to serve as the affirmative action officer with the responsibility for carrying out the contractor's AAP implementation and EEO commitments. The affirmative action officer’s identity should appear on all internal and external communications regarding the affirmative action program. This official is to be given top management support and sufficient staff to manage implementation of the program. A sample statement is provided in Appendix B at pages 9-11.


 
Section 503 and VEVRAA
Affirmative Action Program
Element #10
 
 
Contractors and subcontractors must train their personnel to ensure that EEO and affirmative action program commitments are implemented. [41 CFR 60-250.44(j), 41 CFR 60-300.44(j), 41 CFR 60-741.44(j)]
 
 

All personnel involved in the recruitment, screening, selection, promotion, disciplinary, and related processes must be knowledgeable about the contractor’s EEO obligations and, if appropriate, about the contractor’s affirmative action commitments under Section 503 and VEVRAA. A sample statement is provided in Appendix B at page 12. 

Additional Requirements

 

There are also several additional compliance requirements with which supply and service contractors and subcontractors must comply. These requirements include:

 

  

 
Additional Requirements:
Recordkeeping
 
 
General Record Retention  
Any personnel or employment record made or kept by a contractor or subcontractor must be maintained by the contractor/subcontractor for a period of not less than two years from the date of the making of the record or the personnel action involved. If the contractor/subcontractor has fewer than 150 employees or has a contract for less than $150,000 the minimum record retention period is one year. [41 CFR 60-1.12, 41 CFR 60-250.80, 41 CFR 60-300.80 and 41 CFR 60-741.80] 
Records Concerning Employee Selection  
Contractors with 100 or more employees must maintain and have available for each job records and other information showing the impact of the total selection process (i.e., the combined effect of all selection procedures leading to the final employment decision) by identifiable race, sex, and ethnic group. [41 CFR 60-3.4B and 3.15A(2)(a)] Contractors with fewer than 100 employees must maintain and have available records showing, for each year: the number of persons hired, promoted, and terminated for each job and the number of applicants for hire and promotion, by sex, race and national origin. [41 CFR 60-3.15A(1)]
 

Personnel and employment records subject to the general record retention regulations include, but are not limited to, records pertaining to hiring, assignment, promotion, demotion, transfer, layoff, recall, termination, rates of pay or other terms of compensation, selection for training or apprenticeship, requests for reasonable accommodation, results of physical examinations, job advertisements and postings, applications and resumes, tests, test results and interview notes. Failure to preserve complete and accurate records constitutes noncompliance under Executive Order 11246, Section 503, and VEVRAA, as appropriate, and may result in a presumption that the information destroyed or not preserved would have been unfavorable to the contractor.

 

Recordkeeping requirements specific to Internet applicants are discussed in guidance materials located at http://www.dol.gov/ofccp/regs/compliance/faqs/iappfaqs.htm#Q1RKa

At least annually, contractors with 100 or more employees are required to analyze their records and other information maintained for each job to determine whether the total selection process is having adverse impact. 41 CFR 60-3.15A(2). The adverse impact determinations must be conducted by gender and for each race or ethnic group (e.g. Black, Hispanic, Asian/Pacific Islander, and American Indian/Alaskan Native) that constitutes at least two percent of the labor force in the relevant area or two percent of the contractor’s applicable workforce. Appendix D of this Guide contains guidance about conducting adverse impact determinations. Where a total selection process has an adverse impact on any of the above referenced groups, the contractor should maintain and have available records showing which components of the selection process have an adverse impact. The contractor also should have available for each component that has an adverse impact, evidence that the procedure has been validated in accordance with the Uniform Guidelines (UGESP).

 

  

 
Additional Requirements:
Discrimination based on
Religion or National Origin
 
 
Contractors and subcontractors must implement the Guidelines on Discrimination because of Religion or National Origin [41 CFR 60-50]

 

 

Contractors and subcontractors must review their employment practices to ensure that members of various religious and/or ethnic groups are not harassed or discriminated against and receive fair consideration for job opportunities. Contractors and subcontractors must also ensure that the religious practices of applicants and employees are accommodated, unless to do so would impose an undue hardship. Although not required, self-monitoring of this obligation will aid contractors in ensuring compliance. A sample document addressing compliance with these guidelines is provided in Appendix A at pages 30-31. 

 
Additional Requirements:
Contract Clauses
 
 
Contractors and subcontractors must include or reference the following clauses in certain (depending on dollar amount) subcontracts and purchase orders resulting from the contract:
  • Executive Order 11246 equal opportunity clause;
 
  • VEVRAA equal opportunity clause; and
 
  • Section 503 equal opportunity clause.
 
[41 CFR 60-1.4(a); 60-250.5; 60-300.5 and 60-741.5] 

 

 

 

 

  

 
Additional Requirements:
Invitation to Self-Identify: Individuals with Disabilities
 
 
Contractors and subcontractors must invite applicants to self-identify as an individual with a disability so that they may benefit under the affirmative action program for individuals with disabilities. [41 CFR 60-741.42]
 

The invitation to self-identify is designed to give persons whose disabilities may not be known to the contractor an opportunity to identify their disability in order to benefit from the contractor’s affirmative action program. In general, the invitation is to be extended after an employment offer has been made and before the applicant begins work. A contractor may invite an applicant to self-identify as an individual with a disability before an offer of employment has been made: 

 

 

The invitation to self-identify must inform the applicant that the request to benefit under the contractor’s affirmative action program may be made immediately or at any time in the future.

 

For further explanation of self-identification requirements, see 41 CFR Part 60-741.42. There is a sample invitation to self-identify in Appendix B to 41 CFR Part 60-741, and at the end of Appendix B of this Guide. 

 

 
Additional Requirements:
Invitation to Self-Identify: Protected Veterans
 
 
Contractors and subcontractors must invite applicants to self-identify as a disabled veteran so that they may benefit under the affirmative action program for protected veterans. Contractors must also invite applicants to self-identify as a recently separated or other protected veteran. [41 CFR 60-300.42(a) and (b)]. See also: 60.250.42.
 

The invitation to self-identify requirement for disabled veterans mirrors the requirement for individuals with disabilities. In general, the invitation is to be extended after an employment offer has been made and before the applicant begins work. The contractor may invite disabled veterans to self-identify prior to making a job offer when:

 

   

The contractor must also invite applicants to self identify as a recently separated or other protected veteran, i.e., a veteran who served during a war or in a campaign or expedition for which a campaign badge has been authorized or an Armed Forces service medal veteran, so that they may benefit under the contractors affirmative action program. The invitation to these veterans may be extended at any time before the applicant begins his or her employment duties. The invitation to self-identify must inform the applicant that the request to benefit under the contractor’s affirmative action program may be made immediately or at any time in the future.

 

For further explanation of self-identification requirements, see 41 CFR 60-300.42. There is a sample invitation to self-identify in Appendix B to 41 CFR Part 60-300, and at the end of Appendix B of this Guide. See also 41 CFR 250.42, Appendix B.

   

 
Additional Requirements:
Mandatory Job Listing
 
 
Contractors and subcontractors covered under VEVRAA must list employment openings with the appropriate employment service delivery system where the opening occurs. [41 CFR 60-250.5 and 41 CFR 60-300.5]
 

Contractors are required under VEVRAA to list with the appropriate employment service delivery system all employment openings except: 

 

Employment openings that must be listed include full-time jobs, temporary jobs lasting more than three days, and part-time jobs.

 

Contractors covered by Part 60-300, (i.e., those with a contract over $100,000 entered into or modified after December 1, 2003), and contractors covered by Part 60-250, (i.e., those with contracts over $25,000 entered into prior to December 1, 2003) are required to list employment openings with the appropriate employment service delivery system concurrently with the contractor's use of any other recruitment source or effort. The term “employment service delivery system” means the public employment offices established under the Wagner-Peyser Act and known as the “Employment Service.” The Employment Service provides these services as part of the One-Stop service delivery system established by the Workforce Investment Act. The names of the agencies providing these services vary and may include the words "Employment Services," "State Workforce Agency," "Employment Security Commission," "Job Service," "Career Center," "Workforce Center," "One-Stop," "Job Center," or "Workforce Development Center." Listing with an appropriate local employment service office where the job opening occurs, or with the state workforce agency job bank in the state where the job opening occurs will satisfy the job listing requirement.

  

 
Additional Requirements:
EEO-1 Report
 
 
Contractors and subcontractors with 50 or more employees and a covered contract or subcontract of $50,000 or more must submit an annual EEO-1 Report. [41 CFR 60-1.7a]
 

 

Contractors and subcontractors with 50 or more employees and a contract or subcontract of $50,000 or more must complete and submit the Employer Information Report EEO-1 (or EEO-1 Report) that identifies employees in job categories by race and sex. The EEO-1 Report is used by the Joint Reporting Committee (JRC), which is comprised of representatives from the Department of Labor and the Equal Employment Opportunity Commission (EEOC). Reports must be filed with the JRC annually, no later than September 30.

 

 

 

 

The following two pages contain a copy of the EEO-1 Report form. The EEO-1 Report form (Standard Form 100) and Instruction Booklet can be found online at http://www.eeoc.gov/eeo1survey/.

 

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Additional Requirements
VETS-100 and VETS-100A Reports
 
 
Once a year, Federal Government contractors and subcontractors covered under VEVRAA must compile a report of the numbers of disabled and other covered veterans in their workforce by job category and hiring location. Contractors and subcontractors must also collect data indicating the total number of employees and the number of covered veterans hired during the reporting period. Contractors and subcontractors must use the VETS-100 or VETS-100A form, as appropriate, for this report. [41 CFR Part 61-250 and Part 61-300.]
 

 

Explanation of Requirements:

 

 

 

 

For more information or to request VETS-100 or VETS-100A Report forms, visit the VETS-100/100A website at http://www.dol.gov/vets/programs/fcp/main.htm, email the VETS-100 staff at VETS100-customersupport@dol.gov or call 1-866-237-0275. 

A sample form currently in use as of the publication date of this Guide is on the following page. Downloadable forms are available at: http://www.dol.gov/vets/vets-100.html.

 

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Additional Requirements
I-9 Forms
 
 
Under the Immigration Reform and Control Act of 1986, contractors and subcontractors must maintain I-9 forms to verify that their employees are legally authorized to work in the United States.
 
 

Explanation of Requirements:

 

 

 

 

 

 

U.S. Department of Justice
Civil Rights Division
Office of Special Counsel for Immigration-Related
Unfair Employment Practices
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530

Main Number: (202) 616-5594

Online: http://www.usdoj.gov/crt/osc.

 

Preparing for a Compliance Evaluation

 

 

The OFCCP conducts compliance evaluations to determine:

 

 

A compliance evaluation may consist of any one or more of the following investigative procedures:

 

  1. An off-site review of records, consisting of an analysis and evaluation of part or all of the affirmative action programs, supporting documentation, and other documents relevant to a determination of whether the contractor has complied with the requirements of the regulations implementing Executive Order 11246, VEVRAA and Section 503.

 

  1. A compliance check, conducted to ascertain whether data and other information submitted previously by the contractor is complete and accurate; to ascertain whether the contractor has maintained required records; and/or to ascertain whether the contractor has properly developed its AAPs;

 

  1. A focused review, consisting of 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; or

 

  1. A “full-scale” compliance review, consisting of a comprehensive analysis and evaluation of the hiring and employment practices of the contractor, the written AAPs, and the results of the affirmative action efforts undertaken by the contractor.

 

Full-scale compliance reviews generally consist of four phases:

 

Phase 1: Desk audit;

Phase 2: On-site investigation;

Phase 3: Off-site analysis; and

Phase 4: Notice of findings. 

Phase 1: Desk Audit - . During the desk audit, an OFCCP compliance officer (CO) reviews the written affirmative action programs and personnel activity records to determine whether the contractor is complying with relevant provisions of 41 CFR Chapter 60.

 

The desk audit gives the compliance officer an opportunity to:

 

(a) Review of the contractor's basic organizational structure;

(b) Examine the contractor’s Executive Order, VEVRAA and Section 503 AAPs for completeness and the inclusion of supporting data;

 

(c) Examine the contractor's personnel policies and procedures;

 

(d) Identify areas where there has been a lack of progress in meeting goals and the information that will be needed to evaluate the contractor's good faith efforts, including the development and implementation of programs designed to improve opportunities for minorities and women; and

 

(e) Identify areas for an in-depth investigation of potential discrimination where minorities and women are underrepresented or concentrated in the workforce; where employment activity has been disadvantageous to minorities and women; and where there may be problems in the compensation of minorities and women.

 

The CO conducts this review at his or her field office, away from the contractor's facility in preparation for the on-site review. At any time during the desk audit process, a CO may identify the need to contact the contractor and will do so to make an inquiry and/or to offer technical assistance.

 

Phase 2: On-Site Investigation – An on-site investigation will be conducted as a part of all “full reviews” and may be scheduled in other instances, as determined by OFCCP. An on-site investigation offers the CO an opportunity to confirm and verify information provided by the contractor and to follow up on potential discrimination identified during the desk audit. An on-site investigation is performed at the contractor's facility. Prior to the on-site, the compliance officer will discuss with the contractor mutually agreed upon dates. The compliance officer will then issue an on-site confirmation letter that may also itemize information to be provided to OFCCP prior to the on-site and/or when OFCCP is on-site.


The on-site begins with an entrance conference with the CEO, in which OFCCP’s mission and the compliance evaluation process is discussed. In conducting the on-site, a compliance officer compares the information and data reviewed during the desk audit with the actual employment practices at the company. The compliance officer also reviews personnel, pay and other employment records; interviews employees and company officials; and investigates other aspects of employment. Other documents are likely to be inspected, as well, including I-9 forms; VETS 100 forms; reasonable accommodation records; and the placement of required postings, such as the EEO poster. Additional requests for data and documentation, not previously provided by the contractor, may be made during the on-site investigation.

 

Contractors should make sure that an officer of the company, who is empowered to make and discuss policy and to make commitments regarding corrective action, where necessary, is present during the on-site. An exit conference with the CEO is generally held on the last day of the on-site, or the compliance officer may schedule a time to return for the exit conference.

 

Phase 3: Off-Site Analysis - During an off-site analysis, the compliance officer evaluates all data gathered during the course of the review including statistical information, interviews, notes, and results of record checks. The compliance officer then makes an initial determination as to whether the contractor's policies and practices comply with OFCCP regulations.

 

Phase 4: Notice of Findings - During the final phase, OFCCP will notify the contractor of the findings of the review. If there are no problems or violations noted, the contractor will be so advised via a Notice of Review Completion. If problems or violations do exist, OFCCP will issue the contractor (1) a Pre-Determination Notice (PDN) outlining potential problems, such as indicators that recordkeeping violations, discriminatory treatment and/or systemic issues in hiring or other employment practices may have occurred, and allowing for contractor response; and/or (2) a Notice of Violations (NOV) containing an explanation of any violation(s) found, and recommendations for corrective action and suggested ways to improve the contractor's EEO and affirmative action performance record. OFCCP will determine whether it is appropriate to issue a PDN, NOV, or both, based on the facts of the individual compliance evaluation.

 

A compliance evaluation may: 1) be closed after the desk audit, 2) continue with an on-site review that is focused on one or two issues, and/or 3) continue with an on-site review that involves an examination of several issues.

 

Compliance Evaluations and Confidentiality of Records: During a compliance evaluation, supply and service contractors must provide documented evidence of their efforts to implement all of the affirmative action and equal opportunity requirements. When a compliance evaluation is scheduled contractors are given a letter that lists the types of documents and records initially required for examination during the evaluation. OFCCP treats documents and records obtained during the compliance evaluation as confidential to the maximum extent the data are exempt from public disclosure under the Freedom of Information Act (FOIA), 5 USC 552. In keeping with the FOIA exemptions, it is the practice of OFCCP not to release data when the contractor is still in business, and it is determined that the data is confidential and sensitive and that the release of data would subject the contractor to commercial harm. Contractors should clearly identify proprietary materials to avoid inadvertent disclosure of materials that may be exempt from disclosure.  

 

Compliance evaluations present few challenges to contractors who demonstrate good faith efforts and have designed a well-organized affirmative action program. Contractors can prepare for a compliance evaluation by:

 

 

 

 

 

As part of the self-audit, contractors should ask themselves questions such as the following:  

Internal Dissemination of Policy 

Has the contractor conspicuously displayed the required EEO poster (available from any OFCCP office or on the OFCCP web site) at each work site or company location in areas accessible to both applicants and employees?

 

Has the contractor posted its EEO policy at every job site? 

External Dissemination of Policy 

Do the contractor's contracts and purchase order forms display or reference the equal opportunity clause as required? 

Audit of Personnel Operations 

How does the contractor hire employees for jobs? Are records maintained regarding the hiring process?

 

Does the contractor maintain a system for identifying applicants by gender, race, and ethnicity (Hispanic/non-Hispanic) and, when appropriate to do so, applicants who are individuals with disabilities or protected veterans for consideration as candidates for appropriate openings and promotions? 

Are application, hiring, promotion, and termination procedures carried out in a uniform, nondiscriminatory fashion?

 

Is there a disparity between the separation and termination rate of minorities and women and that for non-minorities and males, or for individuals with disabilities and protected veterans as compared to individuals without disabilities and those who are not protected veterans? If so, why?

 

Has the contractor implemented policies and procedures to identify and remedy issues of discrimination or harassment based on race, color, sex, religion, national origin, disability, or status as a protected veteran?

 

Are reasonable accommodation requests from applicants and employees with disabilities processed promptly and are needed reasonable accommodations provided?

 

Are online or electronic application systems accessible and are reasonable accommodations provided, when requested?

 

Are training programs, including apprenticeship programs, available to employees without regard to race, color, sex, religion, national origin, disability, or status as a protected veteran? 

Effect of Personnel Practices  

Does the facility have written personnel policies and procedures? Do any of these policies or practices have an adverse impact by gender, race, or ethnicity (Hispanic/non-Hispanic)?

 

Are job descriptions in written form? Are job qualification standards job-related and consistent with business necessity? Are they likely to screen out qualified individuals on the basis of disability?

 

Are there any restrictions to the granting of fringe benefits, including medical and life insurance, pension and retirement benefits, profit sharing and bonus plans and credit union benefits based on the gender of the employee, status as a protected veteran, or status as an individual with a disability? If so, what is the impact of the restriction(s)?

 

Are employment benefits available to the spouses and families of male employees also available to the spouses and families of female employees? Are the benefits available to the families of individuals without disabilities and those who are not protected veterans also available to the families of individuals with disabilities and protected veterans? 

Validation 

Are tests used by the contractor as a part of its selection procedures? If so, does the use of the test have an adverse impact on the screening or selection by gender, race, or ethnicity (Hispanic/non-Hispanic)? If so, have tests been validated to ensure that they are valid predictors of an individual's success in that position?

 

Compensation Disparities 

Has the contractor reviewed its salary and bonus structure to ensure that it does not discriminate against minorities, women, individuals with disabilities, or protected veterans?

 

Do minorities, women, individuals with disabilities or protected veterans receive lower starting rates of pay than their counterparts with similar education and experience who are not minorities, women, individuals with disabilities or protected veterans?

 

Do jobs offered by the contractor have similar duties but different pay rates? If so, are minorities, women, individuals with disabilities or protected veterans concentrated in the job that has the lower rate of pay? Do minorities or women earn less than their non-minority or male counterparts? Do individuals with disabilities or protected veterans earn less than their counterparts who are not individuals with disabilities or protected veterans?

 

Maintenance of Records 

Does the contractor maintain proper applicant flow records?

 

Does the contractor maintain proper records about terminations and separations?

 

Have I-9 forms been maintained for all required employees and filled out correctly?

Have the appropriate VETS 100 and 100A forms been maintained and filled out correctly? 

Sex Discrimination 

Does the contractor's policy on maternity/parental leave meet regulatory requirements?

 

Does the contractor have a sexual harassment policy that is disseminated to staff and employees? Is training on the sexual harassment policy provided? 

Retirement Policy 

Does the contractor's policy on mandatory or optional retirement age differ based upon the gender of the employee or their status as an individual with a disability or protected veteran? 

Directing Recruitment Efforts 

Does the contractor underutilize minorities or women in its positions? If so, what efforts has the contractor made to recruit minorities and women?

 

What recruitment sources does the contractor use? Do these sources refer women, minorities, individuals with disabilities, and protected veterans?


Has the contractor complied with the job listing requirement of VEVRAA? 

Community Relations 

What is the equal employment opportunity image of the facility in the community?

 

Religion/National Origin  

Has the contractor reviewed its employment practices and policies to determine whether members of the various religious and ethnic groups receive fair consideration for job opportunities?

 

Are employees periodically informed of the contractor's commitment to equal employment opportunity for all persons, without regard to religion or national origin?

 

Have recruiting sources been informed of the contractor's commitment to provide equal employment opportunity without regard to religion or national origin?

 

Have reasonable accommodations to the religious observances and practices of employees or prospective employees been made?

_______________________

 

Asking yourself the above questions will go a long way towards preparing a contractor for an OFCCP compliance evaluation. Contractors should also know that when a compliance evaluation is scheduled, compliance officers will request the following documents for on-site inspection:

 

 

 

 

For Further Information: Procedures and instructions for compliance checks, offsite review of records, focused reviews and full scale compliance reviews are detailed in the Federal Contract Compliance Manual Chapter 2 and on the OFCCP website at http://www.dol.gov/ofccp  


Recognizing Best Practices

 

Each year OFCCP hosts an award ceremony to recognize and honor those contractors and subcontractors that go well beyond the minimum requirements of the EEO and affirmative action laws.

 

The Secretary of Labor's Opportunity Award, initiated in 1988, is presented by the Secretary of Labor to honor one contractor for the successful implementation of a significant multi-faceted program ensuring equal employment opportunity and affirmative action within its organization, and for the successful implementation of programs supporting these goals in the broader community.

 

The Exemplary Voluntary Effort (EVE) Award, initiated in 1983, is presented by the Director of OFCCP to contractors that have demonstrated through programs or activities, exemplary and innovative efforts to increase the employment opportunities for employees, including minorities, women, individuals with disabilities and covered veterans.

 

The Exemplary Public Interest Contribution (EPIC) Award, initiated in 1994, is presented by the Director of OFCCP to honor selected public interest organizations that have supported affirmative action and linked their efforts with those of Federal contractors to enhance employment opportunities for minorities, women, individuals with disabilities and protected veterans.

The G-FIVE Initiative, initiated in 2008, recognizes contractors’ best practices to employ and advance veterans. G-FIVE recognition is awarded by the Director of OFCCP.

To be eligible for consideration for an EVE or Opportunity Award, a nominee must be a Federal contractor covered by Executive Order 11246, as amended; Section 503 of the Rehabilitation Act, as amended; and the Vietnam Era Veterans' Readjustment Assistance Act, as amended. Also, nominees must not have any unresolved employment discrimination allegations as determined by a compliance evaluation and/or a complaint or other investigation.

 

In addition, the nominee must not have any enforcement actions pending, or be subject to any corrective actions or consent decrees that have resulted from litigation under laws enforced by any agency in the Department of Labor. While the EVE Award may be given for a single program or activity, recipients of the Opportunity Award must have developed and implemented a multi-faceted affirmative action program directed towards the changing demographics of the labor force. This may include involvement in community-based projects that assist in the development of a diverse workforce for the future. The Opportunity Award nominee may represent a single establishment or the entire corporation.  

 


In past years, Opportunity and EVE Awards have recognized contractor programs such as:

 

 

 

 

 

 

 

To be eligible for consideration for an EPIC Award, a nominee must be a non-profit public interest organization whose activities support the mission of the OFCCP. Past winners have been recognized for their efforts in non-traditional employment for women, vocational training, literacy training, legal advocacy, scholarship programs, mentoring, and linkage with employment referrals to Federal contractors. 

Contact your local OFCCP office for additional information regarding these honors.  

Appendix A

SAMPLE AFFIRMATIVE ACTION PROGRAM (AAP)

 

The following sample AAP is for illustrative purposes only and does not represent the only styles and formats that meet regulatory requirements. While this sample has been constructed around a company with less than 150 employees, thereby allowing the AAP job groups to be formulated according to OFCCP occupational categories as authorized by 41 CFR 60-2.12(e), it may be used as a guide for larger employers.  

When preparing an AAP, it should be customized to reflect an employer’s organizational structure, policies, practices, programs, and data. Usually a separate AAP is required for each establishment. In appropriate circumstances, an establishment may include several facilities located at two or more sites if the facilities are in the same labor market or recruiting area.

 

In addition to the records an employer is required to compile and maintain to support the AAP [41 CFR 60-1.12 and 60-2.17(d)], the employer should also keep materials evidencing its affirmative action efforts. This may include items such as copies of collective bargaining agreements and other documents that indicate employment policies and practices; copies of letters sent to suppliers and vendors stating the EEO/affirmative action policy; copies of letters sent to recruitment sources and community organizations; and copies of contract language incorporating the regulatory EEO clause [41 CFR 60-1.4].  


FEDERAL CONTRACTOR, INC. (FCI
)
EXECUTIVE ORDER 11246
SAMPLE AFFIRMATIVE ACTION PROGRAM

Title 41 CFR Section

Organizational Profile 60-2.11

Job Group Analysis 60-2.12

 

Utilization Analysis

 

Placement of Incumbents in Job Groups 60-2.13

 

Determining Availability 60-2.14

 

Comparing Incumbency to Availability 60-2.15

 

Placement Goals 60-2.16

 

Additional Required Elements 60-2.17

 

Designation of Responsibility for Implementation 60-2.17(a)

 

Identification of Problem Areas 60-2.17(b)

 

Action-Oriented Programs 60-2.17(c)

 

Internal Audit and Reporting System 60-2.17(d)

Support Data 60-2.17(b) and 60-3

General Requirement (optional inclusion in AAP)

Guidelines on Discrimination because of Religion or National Origin 60-50

Organizational Display

 

The Organizational Display is a detailed chart of the contractor’s organizational structure. For each organizational unit, the display must indicate the following: 

 

Federal Contractor, Inc. (FCI)

 

Note that the organizational display shows each department, the race/sex of the supervisor(s) and employees within each department, and how all of the departments relate to each other.

Workforce Analysis  

DEPARTMENT/WORK UNIT: Administration
MALES
FEMALES
Job Title
Wage Rate
EEO-1 Category (EEO-1 Form or OFCCP regulations)
Job Group
Total Employees
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
 
General Manager
S-A
1
1
1
1
1
 
 
 
 
 
 
 
 
 
 
 
Personnel Manager
S-D
1
1
1
1
1
 
 
 
 
 
 
 
 
 
 
 
Executive Assistant
S-J
5
5
1
 
 
 
 
 
 
1
1
 
 
 
 
 
Administrative Assistant
H-8
5
5
1
 
 
 
 
 
 
1
 
1
 
 
 
File Clerk
H-11
5
5
2
1
 
 
 
 
1
1
 
 
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEPARTMENT TOTAL
6
3
2
 
 
 
1
3
1
1
 
1
 


Workforce Analysis 

DEPARTMENT/WORK UNIT: Accounting - Billing
MALES
FEMALES
Job Title
Wage Rate
EEO-1 Category
Job Group
Total
Employees
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
 
Controller
S-C
1
1
1
1
 
 
1
 
 
 
 
 
 
 
 
 
Pricing – Billing Manager
S-E
1
1
1
1
1
 
 
 
 
 
 
 
 
 
 
 
General Ledger Accountant
S-F
2
2
1
 
 
 
 
 
 
1
1
 
 
 
 
 
Payroll Administrator
S-H
2
2
1
1
1
 
 
 
 
       
 
 
 
Billing Clerk
H-5
5
5
3
1
 
 
 
 
1
2
2
 
 
 
 
 
Material Pricing Clerk
H-5
5
5
3
1
1
 
 
 
 
 
2
 
1
 
1
 
 
 
 
Administrative Assistant
H-8
5
5
2
 
 
 
 
 
 
2
1
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEPARTMENT TOTAL
12
5
3
 
1
 
1
7
5
2
 
   
 


Workforce Analysis 

DEPARTMENT/WORK UNIT: Accounting – Design
MALES
FEMALES
Job Title
Wage Rate
EEO-1 Category
Job Group
Total
Employees
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
 
Interior Design Manager
S-E
1
1
1
1
1
 
 
 
 
 
 
 
 
 
 
 
 
Interior Designer
S-M
2
2
2
 
 
 
 
 
 
 
 
2
1
 
 
 
1
 
Office Space Planner
S-M
2
2
5
1
1
 
 
 
 
4
4
 
 
 
 
 
Administrative Assistant
H-8
5
5
2
 
 
 
 
 
 
 
2
2
   
 
 
 
 
File Clerk
H-11
5
5
 
 
 
 
 
 
 
 
2
1
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEPARTMENT TOTAL
12
2
2
 
 
 
 
 
 
10
8
 
1
 
1
 


Workforce Analysis 

DEPARTMENT/WORK UNIT: Sales – Customer
MALES
FEMALES
Job Title
Wage Rate
EEO-1 Category
Job Group
Total
Employees
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
 
Sales – Customer Support Manager
S-G
1
1
1
1
1
 
 
 
 
 
 
 
 
 
 
 
Pricing Specialist
S-J
2
2
6
5
3
1
1
 
 
1
 
 
 
 
1
 
Purchasing Agent
S-J
2
2
7
5
5
 
 
 
 
 
2
2
 
 
 
 
 
Office Equipment Sales Representative
S-K
4
4
10
8
8
 
 
 
 
2
2
   
 
 
 
Customer Information Sales Representative
H-7
5
5
6
 
 
 
 
 
 
6
4
 
1
 
 
 
Call Center Agent
 
H-7
 
5
 
5
 
3
 
1
 
1
 
 
 
 
 
2
 
1
 
1
 
 
 
 
Customer Service Complaints Clerk
H-8
5
5
3
1
 
 
 
 
1
2
1
 
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEPARTMENT TOTAL
36
21
18
1
1
 
1
15
10
2
2
 
1
 

 

Workforce Analysis 

DEPARTMENT/WORK UNIT: Installation
MALES
FEMALES
Job Title
Wage Rate
EEO-1 Category
Job Group
Total
Employees
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
Total
White
Black/African American
Asian/Pacific Islander
American Indian/Alaskan Native
Hispanic
 
Installation Manager
S-F
1
1
1
1
1
 
 
 
 
 
 
 
 
 
 
 
Installation Supervisor
S-G
1
1
1
1
1
 
 
 
 
 
 
 
 
 
 
 
Furniture Repair Supervisor
S-G
1
1
1
 
1
 
1
 
 
 
 
 
 
 
 
 
 
 
Inventory Control Clerk
H-9
5
5
2
 
 
 
 
 
 
2
1
   
 
1
 
Systems Specialist
H-9
6
6
12
10
8
 
 
 
2
2
1
1
 
 
 
 
Installer
H-10
6
6
18
 
17
 
12
2
1
 
2
1
 
 
 
 
1
 
Furniture Repair
H-10
6
6
13
 
12
 
7
 
3
 
2
1
 
1
 
 
 
 
Truck Driver
H-11
7
7
8
 
7
 
5
1
 
1
 
1
1
 
 
 
 
 
Forklift Operator
H-12
7
7
2
2
1
1
 
 
 
 
 
 
 
 
 
 
Installer Helper
H-13
8
8
13
12
8
2
 
 
2
1
 
 
1
 
 
 
Receiving
H-13
8
8
3
3
2
1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DEPARTMENT TOTAL
74
66
46
7
4
1
8
8
3
2
1
 
2

Job Group Analysis:
Listing of Job Titles


Job Titles
Job Group Name
EEO-1 Category
General Manager
Controller
Pricing-Billing Manager
Sales – Customer Support Manager
Interior Design Manager
Personnel Manager
Installation Manager
Installation Supervisor
Furniture Repair Supervisor
1
Officials & Managers
Interior Designer
Office Space Planner
General Ledger Accountant
Payroll Administrator
Purchasing Agent
Pricing Specialist
2
Professionals
Office Equipment Sales Representative
4
Sales Workers
 


Job Group Analysis:
Listing of Job Titles
 

Job Titles
Job Group Name
EEO-1 Category
Executive Assistant
Administrative Assistant
File Clerk
Billing Clerk
Inventory Control Clerk
Material Pricing Clerk
Customer Information Sales Representative
Call Center Agent
Customer Service Complaints Clerk
5
Office and Clericals
Systems – Specialist
Installer
Furniture Repair
6
Craftworkers
Truck Driver
Forklift Operator
7
Operatives
Installer Helper
Receiving
8
Laborers
 


Utilization Analysis:

Placement of Incumbents in Job Groups

Job Group
Total # of Incumbents
# of Females
Female Incumbency %
# of Minorities
Minority Incumbency %
1
9
0
0.0
1
11.1
2
22
10
45.5
4
18.2
4
10
2
20.0
0
0.0
5
30
25
83.3
13
43.3
6
43
4
9.3
15
34.9
7
10
1
10.0
3
30.0
8
16
1
6.3
6
37.5
 

Utilization Analysis:

Determining Availability

 

Job Group: 6
Raw Statistics
Value Weight
Weighted Statistics
Source of Statistics
Reason for Weighting
 
Minority
Female
 
Minority
Female
 
 
1. Percentage of minorities or women with requisite skills in the reasonable recruitment area
18.4%
40.2%
10%
1.84%
4.02%
2000 Census
Data
 
2. Percentage of minorities or women among those promotable, transferable, and trainable within the contractor's organization.
20.1%
44.6%
90%
18.09%
40.14%
 
 
Totals:
100%
19.93%
44.16%
‹ Final Factor
 
 

 

Utilization Analysis:

Comparing Incumbency to Availability
and
Establishing Placement Goals


Job Group
Female Incumbency %
Female Availability %
Establish Goal? Yes/No
If Yes, Goal for Females
Minority Incumbency %
Minority Availability %
Establish Goal? Yes/No
If Yes, Goal for Minorities
1
0.0%
47.6%
Yes
47.6%
11.1%
18.1%
Yes
18.1%
2
45.5%
43.8%
No
 
18.2%
8.2%
No
 
4
20.0%
34.5%
Yes
34.5%
0.0%
12.4%
Yes
12.4%
5
83.3%
87.7%
No
*
43.3%
27.6%
No
 
6
9.3%
5.5%
No
 
34.9%
23.2%
No
 
7
10.0%
6.3%
No
 
30.0%
37.5%
No
*
8
6.3%
19.1%
Yes
19.1%
37.5%
26.3%
No
 

 

*The 80% rule of thumb was followed in declaring underutilization and establishing goals when the actual employment of minorities or females is less than 80% of their availability. If the female/minority incumbency percent (%) is less than the female/minority availability percent (%) and the ratio of incumbency to availability is less than 80%, a placement goal should be included in the appropriate “If Yes” column.

 

Designation of Responsibility for Implementation

Responsibilities of the Equal Employment Opportunity Manager:

The Personnel Manager has the responsibility for designing and ensuring the effective implementation of Federal Contractor, Inc’s. (FCI’s) Affirmative Action Program (AAP). These responsibilities include, but are not limited to, the following:

  1. Developing Equal Employment Opportunity (EEO) policy statements, affirmative action programs and internal and external communication procedures;

 

  1. Assisting in the identification of AAP/EEO problem areas;

 

  1. Assisting management in arriving at effective solutions to AAP/EEO problems;

 

4. Designing and implementing an internal audit and reporting system that:

a. Measures the effectiveness of FCI’s program;

b. Determines the degree to which AAP goals and objectives are met; and

c. Identifies the need for remedial action;

 

  1. Keeping FCI’s General Manager informed of equal opportunity progress and reporting potential
    problem areas within the company through quarterly reports;

  2. Reviewing the company’s AAP for qualified minorities and women with all managers and supervisors at all levels to ensure that the policy is understood and is followed in all personnel activities;

 

7. Auditing the contents of the company’s bulletin board to ensure compliance information is posted and up-to-date; and

8. Serving as liaison between FCI and enforcement agencies.

Responsibilities of Managers and Supervisors:

It is the responsibility of all managerial and supervisory staff to implement FCI’s AAP. These responsibilities include, but are not limited to:

 

  1. Assisting in the identification of problem areas, formulating solutions, and establishing departmental goals and objectives when necessary;

  1. Reviewing the qualifications of all applicants and employees to ensure qualified individuals are treated in a nondiscriminatory manner when hiring, promotion, transfer, and termination actions occur; and

 

  1. Reviewing the job performance of each employee to assess whether personnel actions are justified based on the employee’s performance of his or her duties and responsibilities.


Identification of Problem Areas  

Areas of Concern
Corrective Actions
  • Underutilization of minorities and women in Job Groups 1 and 4 where external hiring opportunities occurred. Concern regarding low minority and female applicant flow rate resulting from inadequate recruitment for both job groups.
  • No later than March 1, 2010, notify management and professional recruitment sources, in writing, of FCI’s interest in attracting qualified minorities and women to apply for job openings.
  • No later than March 1, 2010, expand FCI’s recruitment program to colleges and universities with a significant percentage of minority and female students.
  • Underutilization of women in Job Group 8 entry-level blue-collar jobs. Concern regarding low female applicant flow rate resulting from inadequate recruitment.
  • No later than January 1, 2010, contact the local YWCA, local vocational school, and training centers to inform them of FCI’s interest in attracting qualified female applicants.
  • High termination rate for females in Job Group 8.
  • Immediately review exit interview survey of terminated females to confirm voluntary reason for leaving.
 


Action-Oriented Programs

 

FCI has instituted action programs to eliminate identified problem areas and to help achieve specific affirmative action goals. These programs include:

  1. Conducting annual analyses of job descriptions to ensure they accurately reflect job functions;

 

  1. Reviewing job descriptions by department and job title using job performance criteria;

 

3. Making job descriptions available to recruiting sources and available to all members of management involved in the recruiting, screening, selection and promotion processes;

 

4. Evaluating the total selection process to ensure freedom from bias through:

 

a. Reviewing job applications and other pre-employment forms to ensure information requested is job-related;

b. Evaluating selection methods that may have a disparate impact to ensure that they are job-related and consistent with business necessity;

 

c. Training personnel and management staff on proper interview techniques; and

 

d. Training in EEO for management and supervisory staff;

 

5. Using techniques to improve recruitment and increase the flow of minority and female applicants. FCI presently undertakes the following actions:

a. Include the phrase "Equal Opportunity/Affirmative Action Employer" in all printed employment advertisements;

 

b. Place help wanted advertisement, when appropriate, in local minority news media and women's interest media;

c. Disseminate information on job opportunities to organizations representing minorities, women and employment development agencies when job opportunities occur;

 

d. Encourage all employees to refer qualified applicants;

 

e. Actively recruit at secondary schools, junior colleges, colleges and universities with predominantly minority or female enrollments; and

 

f. Request employment agencies to refer qualified minorities and women;

 

6. Hiring a statistical consultant to help FCI perform a self-audit of its compensation practices; and

 

7. Ensuring that all employees are given equal opportunity for promotion. This is achieved by:

 

a. Posting promotional opportunities;

 

b. Offering counseling to assist employees in identifying promotional opportunities, training and educational programs to enhance promotions and opportunities for job rotation or transfer; and

 

c. Evaluating job requirements for promotion.


Internal Audit and Reporting System

 

The Personnel Manager has the responsibility for developing and preparing the formal documents of the AAP. The Personnel Manager is responsible for the effective implementation of the AAP; however, responsibility is likewise vested with each department manager and supervisor. FCI’s audit and reporting system is designed to:

 

 

 

 

 

The following personnel activities are reviewed to ensure nondiscrimination and equal employment opportunity for all individuals without regard to their race, color, gender, religion, or national origin:

 

 

The following documents are maintained as a component of FCI’s internal audit process:

 

  1. An applicant flow log showing the name, race, sex, date of application, job title, interview status and the action taken for all individuals applying for job opportunities;

 

  1. Summary data of external job offers and hires, promotions, resignations, terminations, and layoffs by job group and by sex and minority group identification;

 

  1. Summary data of applicant flow by identifying, at least, total applicants, total minority applicants, and total female applicants for each position;

 

  1. Maintenance of employment applications (not to exceed one year); and

 

  1. Records pertaining to FCI’s compensation system.


FCI’s audit system includes a quarterly report documenting FCI’s efforts to achieve its EEO/AAP responsibilities. Managers and supervisors are asked to report any current or foreseeable EEO problem areas and are asked to outline their suggestions/recommendations for solutions. If problem areas arise, the manager or supervisor is to report problem areas immediately to the Personnel Manager. During quarterly reporting, the following occurs:

  1. The Personnel Manager will discuss any problems relating to significant rejection ratios, EEO charges, etc., with the General Manager; and

 

  1. The Personnel Manager will report the status of the FCI’s AAP goals and objectives to the General Manager. The Personnel Manager will recommend remedial actions for the effective implementation of the AAP.

Support Data:

Personnel Activity

  

 
OFCCP Category:
Officials and Managers
Job Group: 1
 
External Hires
 
 
External Applicants
 
Promotions - Into
Job Group
 
Promotions - Within Job Group
 
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
White
1
 
8
 
1
 
 
 
Black/African American
 
 
 
1
 
 
 
 
Asian/Pacific Islander
 
 
 
 
 
 
 
 
American Indian/Alaskan Native
 
 
 
 
 
 
 
 
Hispanic
 
 
 
 
 
 
 
 
Race Missing or Unknown
 
 
 
 
 
 
 
 
TOTAL (count each person once only)
 
1
 
 
8
 
1
 
1
 
 
 
 
Voluntary Terminations & Retirements
 
Involuntary Terminations
 
 
Layoffs
 
Recalls
 
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
White
 
 
 
 
 
 
 
 
Black/African American
 
 
1
 
 
 
 
 
Asian/Pacific Islander
 
 
 
 
 
 
 
 
American Indian/Alaskan Native
 
 
 
 
 
 
 
 
Hispanic
 
 
 
 
 
 
 
 
Race Missing or Unknown
 
 
 
 
 
 
 
 
TOTAL (count each person once only)
 
 
1
 
 
 
 
 
 


Support Data:

Personnel Activity

 

 
OFCCP Category:
Professionals
Job Group: 2
 
External Hires
 
 
External Applicants
 
Promotions - Into
Job Group
 
Promotions - Within Job Group
 
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
White
2
 
6
9
 
 
1
 
Black/African American
 
 
1
1
 
 
 
 
Asian/Pacific Islander
 
 
 
 
 
 
 
 
American Indian/Alaskan Native
 
 
 
 
 
 
 
 
Hispanic
 
 
1
 
 
1
 
 
Race Missing or Unknown
 
 
 
 
 
 
 
 
TOTAL (count each person once only)
 
2
 
 
8
 
10
 
 
 
1
 
1
 
 
Voluntary Terminations & Retirements
 
Involuntary Terminations
 
 
Layoffs
 
Recalls
 
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
White
 
 
 
 
 
 
 
 
Black/African American
 
 
 
 
 
 
 
 
Asian/Pacific Islander
 
 
 
 
 
 
 
 
American Indian/Alaskan Native
 
 
 
 
 
 
 
 
Hispanic
 
 
 
 
 
 
 
 
Race Missing or Unknown
 
 
 
 
 
 
 
 
TOTAL (count each person once only)
 
 
 
 
 
 
 
 
 


Support Data:

Personnel Activity

 

 
OFCCP Category:
Sales Workers
Job Group: 4
 
External Hires
 
 
External Applicants
 
Promotions - Into
Job Group
 
Promotions - Within Job Group
 
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
MALES
FEMALES
White
 
 
 
 
 
 
 
 
Black/African American
 
 
 
 
 
 
 
 
Asian/Pacific Islander
 
 
 
 
 
 
 
 
American Indian/Alaskan Native
 
 
 
 
 
 
 
1
Hispanic
 
 
 
 
 
 
 
 
Race Missing or Unknown
 
 
 
 
 
 
 
 
TOTAL (count each person once only)
 
 
 
 
 
 
 
 
1