Federal Compliance FAQs on Affirmative Action
Below are just some of the most frequently asked questions company’s have about Federal Compliance and Affirmative Action issues. If you have any other questions, we would like to hear from you.
NEW
Q: Will FACF support the additional reporting required by the new directive?
FACF will answer your questions on the new Directive. The new Directive clarifies that the Pay Equity analysis is an annual requirement. It should be prepared each year along with your AAP and provided by your provider. FACF will help you determine a provider that is right for you.
Q: Will there be additional fees associated with the new requirement?
The new directive is a substantial increase in expectations by OFCCP which will require additional annual compensation analysis before OFCCP portal verification can be completed. We would expect your provider to tact on additional fees.
Q: When will we know how much it will cost? Most providers should have an idea by 2023
You can expect to have pricing models in place by October 1 to give you plenty of time to plan for 2023 budgets from most providers,
Q: When are these reports required?
Federal Contractors should come into compliance at the start of their 2023 AAP plan year. However, if one or more of your establishments are currently on the Corporate Scheduling Announcement list then we recommend that you take proactive steps to prepare your submission to include the required information on the pay equity analysis.
Q: Will this reporting require additional data?
If you are currently providing Annual Compensation with your annual AAP data to your vendor then no additional data should be required.
Q: How Do I determine if I am a Federal Contractor or Subcontractor subject to the Laws Enforced by OFCCP?
If your business or organization has a Federal contract, subcontract, or federally assisted construction contract.
There are 3 general guidelines subject to the laws enforced by the OFCCP:
The business holds a single Federal contract, subcontract, or Federally assisted construction contract for more than $10,000
The business has Federal contracts or subcontracts that combined total more than $10,000 in any 12-month period.
The business holds Government bills of lading, serves as a depository of Federal funds, or is an issuing and paying agent for U.S. savings bonds and notes in any amount.
Q: What is a Federal subcontractor test?
The Federal subcontractor test determines whether a business or organization qualifies as a Federal subcontractor and is therefore subject to the laws of the OFCCP. Subcontractors are businesses that perform work for a Federal contractor that is necessary for the completion of a Federal contract.
Under Executive Order 11246, a subcontract is “any agreement or arrangement between a contractor and any person (in which the parties do not stand in the relationship of an employer and an employee):
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 contracts; or
Under which any portion of the contractor’s obligation under any one or more contracts is performed, undertaken or assumed.”
Q: What is the Single Entity Test?
Single entity test focuses on whether the ownership, management, and operations of separate entities are interrelated to warrant treating them as a single entity. This test is used to determine whether a separate business or organization without Government contracts may be covered under the laws enforced by the OFCCP based on a relationship or “single entity” status with a Government contractor or sub-contractor.
In this test, the OFCCP determines a number of factors, including but not limited to the following:
- Entities have common ownership
- Entities have common officers or directors
- Does one entity has day to day control over the other through policies or management
- Do the personnel policies of the entities come and work from a centralized source
- Are the operations of the entities are dependent on each other
Q: Who is an Applicant under the Internet Applicant Recordkeeping Rule?
OFCCP defines an Internet Applicant by these factors:
The applicant submits interest in employment through the Internet or related Electronic data technologies.
The contractor considers the applicant in a particular position.
The applicant’s expression of interest indicates that they have the basic qualifications for the position.
The applicant does not remove themselves from consideration during the contractor’s selection process.
These are just a few of the most common questions. If you aren’t sure or need a free consultation please feel free to contact us! we will provide advise.
You may use the link below: Directly from OFCCP website.
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An Affirmative Action plan is a program that includes policies, practices, and procedures that a contractor implements in ensuring that all qualified applicants and employees are receiving an equal opportunity for recruitment, selection, advancement, and every other term and privilege associated with employment.
Your vendor who developed and Implement your Affirmative Action Plan should provide a service that is cloud-based and contains a narrative and statistical component. The narrative is a detailed description of the practices of an organization in support of the good faith efforts to protect women, minorities, veterans, and disabled employees from discrimination in hiring practices both intentional and impactful. The statistical component includes the following analyses: Workforce Analysis, Job Group Analysis, Availability Analysis, Utilization Analysis, Adverse Impact Analysis, etc.
We have over 110 years’ experience and expertise in federal compliance and it is our passion.
We will recommend only the very best providers in this field and we will represent you if you wish.
Federal contractors and subcontractors with 50 employees and $50,000 in government contracts are required to develop, implement and maintain AAP’s while providing goods and services to the federal government. There are many factors this is just one. Need more information please feel free to contact us! 800.698.1084
Affirmative Action works as an outcome of the 1960’s Civil Rights Movement, intended to provide equal opportunities for members of minority groups and women in education and employment. In 1961, President Kennedy was the first to use the term “affirmative action” in an Executive Order that directed government contractors to take “affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, creed, color, or national origin.” The Executive Order also established the President’s Committee on Equal Employment Opportunity, now known as the Equal Employment Opportunity Commission (EEOC).