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| November 4, 2008 DOL Home > ESA > OFCCP > Employer FAQs |  |
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Office of Federal Contract Compliance Programs (OFCCP)
Frequently Asked Questions for the Employer Who is Covered
Requirements
Monitoring
Overriding Self-Identification Compliance Assistance
Are all construction contractors and subcontractors subject to the laws enforced by OFCCP? All contractors and subcontractors who hold a Federal or federally-assisted construction contract in excess of $10,000 will be subject to regulatory requirements under one or more of the laws enforced by OFCCP depending upon the amount of the contract. Once it has been determined that a contractor or subcontractor is subject to OFCCP jurisdiction, the regulations implementing the civil rights requirements enforced by OFCCP apply to all of the contractor's or subcontractor's employees who are engaged in on site construction, including those construction employees who work on a non-Federal or non-federally assisted construction site. We don't do any government work here. Federal Government work is performed in some other division in another state. Are we subject to the equal employment laws enforced by OFCCP? Yes. Generally speaking, once it has been determined that a business or organization is subject to the civil rights requirements enforced by OFCCP, all of the business's or organization's establishments or facilities will be subject to the same regulatory requirements, regardless of where the Federal contract is to be performed. In addition, some businesses or organizations that do not independently hold Government contracts/subcontracts may still be covered under the laws enforced by OFCCP if they are considered a "single entity" with a related business or organization that holds such contracts. In such instances, OFCCP uses a "single entity" test to determine whether the businesses or organizations are so closely related that they may constitute a single entity for purposes of OFCCP jurisdiction. The test requires OFCCP to consider whether:
The test focuses primarily on whether the ownership, management, and operations of the separate entities are, in fact, sufficiently interrelated to warrant treating them as an integrated enterprise or a single entity. A business or organization need not meet all five factors to be considered a single entity with a covered Federal contractor. However, there is growing recognition that centralized control over labor relations and personnel functions is the most important factor. By way of example, say that two entities are under common ownership, with a common board of directors, and have a central corporate office that determines and issues personnel policy for both entities, and generally manages most personnel-related issues for both entities. At the same time, the operations of the two entities are not particularly dependent on each other. Despite the fact that one of the factors did not apply, the four factors that did outweigh the one that did not, so that the two entities being analyzed will most likely be considered a single entity. Our business operates as a fund depository, and an issuing and paying agent for U.S. Saving Bonds and savings notes; therefore, are we required to comply with the Affirmative Actions Program (AAP) obligations under Executive Order (E.O.) 11246, as amended, the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA), as amended, 38 U.S.C. 4212 and Section 503 of the Rehabilitation Act of 1973 (Section 503), as amended? The E.O. 11246 implementing regulations at 41 CFR 60-1.40(a) and 60-2.1(b) state, in relevant part, that any nonconstruction (Supply and Service) contractor that serves as a depository of Government funds in any amount or a financial institution which is an issuing and paying agent for U.S. saving bonds and saving notes in any amount must develop an affirmative action program. Under Section 503, a Government contractor with 50 or more employees and a Government contract of $50,000 or more must develop a Section 503 affirmative action program. 41 CFR 60-741.40(a). The Section 503 regulations define a 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." 41 CFR 60-741.2(i). The term "nonpersonal services" as used in this section includes fund depository. 41 CFR 60-741.2(i)(4). Thus, the agreement to serve as a Federal funds depository is a "Government contract." Under Section 503, however, all government contracts must meet the dollar threshold amount of $50,000 for coverage. Therefore, if you serve as a depository for Federal funds of $50,000 or more, or have an agreement valued at $50,000 or more to be an issuing and paying agent for savings bonds and notes, you would be obligated to develop and maintain a Section 503 affirmative action program. The same holds true under VEVRAA as under Section 503 for any Government contractor with 50 or more employees and a contract of $50,000 or more to serve as a depository of Federal funds or as an issuing and paying agent for savings bonds and notes, if the Government contract was entered into before December 1, 2003. However, the Jobs for Veterans Act (JVA) amended VEVRAA by raising the dollar threshold amount required for contract coverage to $100,000. The new threshold applies to contracts entered on or after December 1, 2003. Accordingly, if your business or organization became a fund depository or an issuing and paying agent for savings bonds and notes on or after December 1, 2003, it would also be subject to the written AAP requirement under VEVRAA if the contract is for $100,000 or more. For your additional information, there is an interactive electronic tool called the Federal Contract Compliance Advisor, also referred to as Elaws Advisor, to assist Federal contractors and subcontractors in understanding basic coverage and the requirements for compliance with the laws administered by OFCCP. You may wish to consult the Elaws Advisor if you have additional questions about coverage." Is a hospital or other health care provider covered under the laws enforced by OFCCP as a result of the reimbursements it receives for medical services provided to Federal employees, retirees, or their dependents from a health insurance carrier that participates in the Federal Employee Health Benefits Program (FEHB)? OFCCP's policy is that the receipt of reimbursements from a health insurance carrier that provides a health benefits plan under the FEHB Program, for the medical services provided to Federal employees or their dependents, will not provide a basis for coverage of the hospital or other health care provider under the laws enforced by OFCCP. This policy is based on the decision of DOL's Administrative Review Board (ARB) in OFCCP v. Bridgeport Hospital, ARB Case No. 00-234, (January 31, 2003), which involved the question of whether the hospital was covered under the laws enforced by OFCCP by virtue of its agreement with an insurance carrier that had contracted with the U.S. Office of Personnel Management (OPM) to provide Federal employees a fee-for-services health benefits insurance policy. The ARB determined that the reimbursement agreement did not provide a basis for coverage of the hospital under the laws enforced by OFCCP. The decision in Bridgeport Hospital concerned only the contractual obligations assumed by an insurance carrier that has contracted to provide a fee-for-service health benefits plan to Federal employees; it does not address the contractual obligations assumed by providers of other types of plans under the FEHB Program, (e.g., a Health Maintenance Organization). Further, a hospital or health care provider may have other contracts that provide a basis for coverage under the laws enforced by OFCCP. For example, a hospital may be a covered contractor as a result of a contract with the Department of Veterans' Affairs or the Department of Defense requiring the provision of medical services to active or retired military personnel. Likewise, a teaching hospital doing research for a university that has a contract with the Federal government may be a covered Federal contractor. Is a financial institution that is covered by the Federal Deposit Insurance Corporation (FDIC) for insurance coverage subject to the Affirmative Actions Program (AAP) requirements under Executive Order 11246, as amended, the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA), as amended, 38 U.S.C. 4212 and Section 503 of the Rehabilitation Act of 1973 (Section 503), as amended? Financial institutions with federal share and deposit insurance are considered to be government contractors within the meaning of the regulations implementing Executive Order 11246, as amended, the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA), as amended, 38 U.S.C. 4212 and Section 503 of the Rehabilitation Act of 1973 (Section 503), as amended. These three programs enforced by the OFCCP require equal employment opportunity by government contractors. The implementing regulations for Executive Order 11246 (41 CFR 60-1.3), have consistently defined a 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. The term "nonpersonal services" as used in this section includes, but is not limited to, the following services: utilities, construction, transportation, research, insurance, and fund depository. This definition explicitly includes agreements for insurance. The implementing regulations for the VEVRAA and Section 503 programs, found at 41 CFR 60-250.2 and 60-741.2 respectively, also define a 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. The term "nonpersonal services" as used in this section includes, but is not limited to, the following services: utilities, construction, transportation, research, insurance, and fund depository. This definition also explicitly includes agreements for insurance. Therefore, financial institutions with federal share and deposit insurance are considered to be government contractors. For additional information, this position was addressed in the following preamble text to a 1996 VEVRAA proposed rule: The purpose and application section of the 1980 final rule (Sec. 60-250.1) states that Part 60-250 applies to all Government contracts, "including Federal deposit and share insurance." The preamble to the 1980 final rule (45 FR 86218) states that OFCCP believes that Federal deposit and share insurance are contracts within the meaning of Section 4212. In the course of preparing its 1996 final rule implementing Section 503, OFCCP conducted a careful and detailed reevaluation of its position in light of changes in some of the statutes affecting the financial industry. Based upon that review, OFCCP continues to believe in the soundness of its position. However, today's proposal differs from the 1980 final rule in that it does not expressly state that the regulations cover Federal deposit and share insurance. The proposal does not otherwise make reference to the precise subject matter of particular types of covered contracts, and therefore OFCCP no longer considers it necessary to single out deposit and share insurance for express mention in the regulations. OFCCP wishes to reemphasize that it will continue to maintain its long-standing policy of imposing sanctions other than debarment of financial institutions from future deposit or share insurance, or cancellation, termination or suspension of a financial institution's deposit or share insurance for violations of Section 4212. To review the entire text of the 1996 VEVRAA proposed rule, go on-line. Under Executive Order 11246, when are Federal contractors and subcontractors required to develop a written affirmative action program (AAP)? Each non-construction contractor/subcontractor with 50 or more employees is required to develop a written Affirmative Action Program (AAP) for each of its establishments within 120 days from the start of the Federal contract, if it:
As a Prime Contractor, am I required to make sure that the vendors and suppliers with whom I am doing business develop a written AAP? No. You are not required to ensure that your vendors and suppliers develop and maintain written AAPs. The regulations require that each contractor and subcontractor include the EO clause in each subcontract or purchase order. Whether a vendor or supplier is subject to the written AAP requirements, would depend on, among other things, whether the vendor or supplier has a subcontract that is necessary to the performance of the Government contract, the dollar value of any such subcontract, and the number of employees in the vendor's or supplier's workforce. What does OFCCP look for in a contractor's internal audit and reporting system? The internal audit and reporting system is the contractor's way to assess the overall effectiveness of the contractor's Affirmative Action Program (AAP) and advise senior management of the effectiveness of the AAP. The system should monitor records of all personnel activity (including hires, promotions, transfers and terminations) and compensation at all levels to ensure that non-discriminatory practices have been followed. It is suggested that reporting be performed on a periodic basis and reviewed by appropriate management. In addition, top officials should be notified of the program's effectiveness and any recommendations for improvement. The AAP should contain a narrative description of how the system works. Some larger contractor establishments may find it necessary and helpful to conduct internal audits and reports more frequently (i.e., quarterly), while smaller contractors may find that an annual review is sufficient. Our regulations only require "periodic" reviews, which OFCCP has historically considered to mean at least once per AAP year. OFCCP is working on providing self-audit guidance for contractors to enhance their internal audit procedures. What is the correct procedure for a contractor to obtain the ethnic information of its employees and applicants? OFCCP regulations 41 CFR 60-1.12(c) indicate that for any personnel or employment record a contractor maintains, it must be able to identify the gender, race, and ethnicity of each employee and, where possible, the gender, race and ethnicity of each applicant. OFCCP has not mandated a particular method of collecting the information. Self-identification is the most reliable method and preferred method for compiling information about a person's gender, race and ethnicity. Contractors are strongly encouraged to rely on employee self-identification to obtain this information. Visual observation is an acceptable method for identifying demographic data, although it may not be reliable in every instance. If self-identification is not feasible, post-employment records or visual observation may be used to obtain this information. Contractors should not guess or assume the gender, race or ethnicity of an applicant or employee. A contractor's invitation to an employee or applicant to self-identify his or her gender, race, and ethnicity should indicate to individuals that supplying such information is voluntary. OFCCP would not hold a contractor responsible for applicant data when the applicant declines to self-identify and there are no other acceptable methods of obtaining this information. Do Federal construction contractors need to file a Monthly Employment Utilization Report (form CC-257)? No. Federal construction contractors do not need to file a Monthly Employment Utilization Report (form CC-257). The requirement for covered construction contractors to submit the form CC-257 was rescinded effective December 8, 1995. See Federal Register, Volume 60, Number 236, and Page 63061. Is the EEO poster a requirement for Federal contractors? Where can contractors obtain a copy? Yes. Contractors and subcontractors who hold a single Federal contract or subcontract in excess of $10,000 or who hold contracts or subcontracts with the Government in any 12 month period which have an aggregate total value exceeding $10,000 are required to post the EEO notice in accordance with the laws administered by OFCCP. In addition, Federal contractors and subcontractors who (1) hold Government bills of lading; (2) serve as a depository of Federal funds in any amount; or (3) act as issuing and paying agent for U.S. savings bonds and notes must post the EEO notice. The notice must be posted prominently, where it can be readily seen by employees and applicants for employment, e.g., personnel office, work-out facility, lunchroom, or company bulletin board. An approved copy of the OFCCP poster is available. Should a contractor use the various racial and ethnic categories found in the Census 2000 Special EEO Data file for record keeping and reporting required under the regulations implementing Executive Order 11246 beginning in 2005?" No. For record keeping and reporting required under the Executive Order regulations, contractors should continue to use the following categories until notified otherwise:
The racial and ethnic categories used for record keeping and reporting required under the Executive Order regulations are consistent with the categories found on the existing EEO-1 Report. EEOC has proposed changes to the racial and ethnic categories on the EEO-1 Report in light of the Revisions to the Standards for the Classification of Federal Data on Race and Ethnicity issued by the Office of Management and Budget, (62 FR 58782, October 30, 1997), and has published the initial notice required under the Paperwork Reduction Act. (See 68 FR 34965, June 11, 2003). OFCCP intends to coordinate its requirements for collecting and reporting data on race and ethnicity with the changes made to the EEO-1 Report. OFCCP also intends to provide a reasonable transition period before any changes in the data collection requirements become effective. What does OFCCP mean when it indicates contractors should use the Census 2000 Special EEO data file link to update their Affirmative Action Programs beginning in January 2005? As part of developing an affirmative action program, contractors must determine the availability of qualified minorities or women for employment in particular job groups. To determine availability estimates, the regulations require that contractors "use the most current and discrete statistical information available." 41 CFR 60-2.14 (d). The regulations also provide that "[e]xamples of such information include census data, data from local job service offices, and data from colleges or other training institutions." The Census 2000 Special EEO File data is one example of an appropriate source of statistical information. The Census 2000 Special EEO File is available under the "Access to Data from the Special EEO Tabulation" link on the Census Bureau's Web site. In a Notice posted on the agency web site shortly after the release of Census 2000 Special EEO File, OFCCP advised contractors that, beginning with AAP years that commence on or after January 1, 2005, the Census 2000 Special EEO File would be used to assess the reasonableness of the contractor's availability determinations. Accordingly, OFCCP has encouraged contractors that use census data to determine availability estimates to use data from the Census 2000 Special EEO file to complete their AAPs for 2005. Census Bureau's Web site. What are the notice posting requirements under regulations issued by OFCCP? The regulations implementing the laws enforced by OFCCP - Executive Order 11246, Section 503 of the Rehabilitation Act, and the affirmative action provisions of the Vietnam Veterans' Readjustment Assistance Act - require contractors "to post in conspicuous places available to employees and applicants for employment" notices setting forth the provisions of the nondiscrimination clauses. See 41 CFR 60-1.4(a) (1), 60-250.5(a) 9 and 60-741.5(a) 4. The EEO notice provision in the regulations implementing Section 503 further states that applicants and employees with disabilities "are to be informed of the content of the notice," and that this could be accomplished, for example, by having the notice read to a visually impaired person, or lowering a posted notice so that it might be read by a person in a wheelchair. Affixing the "Equal Opportunity is the Law Poster" prepared by either OFCCP or the Equal Employment Opportunity Commission (EEOC) in a physical location (e.g., a wall or bulleting board) where it can be readily seen by employees and applicants will satisfy the notice posting requirements under OFCCP laws. An approved copy of the EEO poster prepared by OFCCP is available on-line. The order form for the EEO poster prepared by EEOC is available on-line. Can a contractor meet its notice-posting obligations by posting the notice electronically rather than in physical paper format? The requirement in the current regulations is that the EEO notices be "post[ed] in conspicuous places, available to employees and applicants for employment." "Posting in a conspicuous place" has a well-accepted interpretation, and the requirement is usually met when a paper copy of the notice is affixed to a wall or bulletin board customarily used for workplace notices. The Department of Labor agencies with workplace poster requirements and other Federal agencies are currently studying whether electronic means could be used to satisfy notice posting obligations. At present, however, physical posting of paper notices is required. What should a contractor do when estimating availability if it finds a Census 2000 Special EEO File data table where data values exceed 100% or where the sum of males and the sum of females does not equal to the total reported in the table? A contractor's Affirmative Action Program (AAP) job group availability estimate should not exceed 100%. Nonetheless, there are residence data tables contained in the Census 2000 Special EEO File where some values exceed 100% or where the sum of males and the sum of females does not equal to the total reported in the table. These discrepancies are due to rounding by the Census Bureau to avoid disclosing individual respondent data according to the Census Bureau's Disclosure Review Board policy. If a contractor finds a Census 2000 data table where the sum of the data is greater than 100% and/or the overall total does not equal to the sum of the males and females (or minorities [e.g., All others, including Hispanic] and non-minorities [White non-Hispanic]), the contractor should recalculate the totals and percentages using the raw data reported in the table when estimating the AAP job group availability. The percentage recalculation should be determined based on the sum of males plus the sum of females (or minorities and non-minorities) divided by the recalculated total for the group to determine the availability estimate. For example, in Cherokee and DeKalb, Alabama, the Census 2000 Special EEO File residence tables for "Tellers" indicate the following: EEO Residence Data Results for Cherokee+DeKalk, AL Number of People
Percentages
A recalculated availability estimate would indicate the following: EEO Residence Data Results for Cherokee+DeKalk, AL Number of People
Percentages
The recalculation of an availability estimate should only be used where percentage values are greater than 100% and/or where the sum of two groups does not equal to the total indicated in a table. What is a compliance evaluation? OFCCP conducts compliance evaluations of Federal contractors to ascertain their compliance with equal opportunity and non-discrimination requirements. A compliance evaluation consists of any one or any combination of the following four investigative procedures:
Please describe the process for selecting companies for on-site inspections OFCCP is focusing its enforcement activities on finding and resolving what might be called "systemic" discrimination. What we mean by "systemic" discrimination, sometimes called class discrimination or a pattern or practice of discrimination, concerns a recurring practice or continuing policy rather than an isolated act of discrimination. OFCCP has adopted this strategy for four reasons: (1) it prioritizes OFCCP's enforcement resources for the worst offenders, those who allow discrimination to be their "standard operating procedure" or allow illegitimate employment standards to adversely impact a significant number of women or minority workers or job applicants; (2) it encourages employers to engage in self audits of their employment practices, by increasing the tangible consequences of not self auditing; (3) it achieves maximum leverage of OFCCP resources to protect the greatest number of workers from discrimination; and (4) it complements OFCCP's compliance assistance strategy, which assists contractors that want to comply voluntarily. To improve OFCCP's focus on systemic discrimination, OFCCP is using the initial stage of its compliance evaluation process, the desk audit, to determine if significant investigative resources should be devoted to a compliance review. If the desk audit reveals significant indicators of systemic discrimination, OFCCP will continue the investigation. If the desk audit does not reveal such indications, OFCCP will close the review unless there is another basis to believe that an on-site review would be appropriate. However, to ensure compliance with all laws enforced by OFCCP, OFCCP will conduct a certain number of on-site reviews on a random basis. In general, OFCCP seeks to maximize the impact of its enforcement resources by focusing on the cases with significant statistical indicators and large class cases. This is not to say that OFCCP will not pursue evidence of racial or sexual harassment or of discrimination that does not involve large numbers of affected persons, but rather that OFCCP's focus will be on those cases which have the greatest potential impact. Once a compliance evaluation has been completed, when can our Company expect to be evaluated again? It is OFCCP's policy not to revisit an establishment within 24 months after the completion of a compliance evaluation. (Note: A compliance check conducted within the last 12 months only exempts the contractor establishment from another compliance check; it does not exempt the contractor establishment from being scheduled for a compliance evaluation.) Does OFCCP offer any guidance about how employers may self-audit their own employment practices to make sure that they comply with the laws enforced by OFCCP? OFCCP has published a technical assistance guide for construction contractors, and has published the Federal Contract Compliance Manual (FCCM). Both have sections that address techniques for performing contractor self audits. The FCCM is available on our web site. We are working on a new technical assistance guide and other compliance assistance materials that will provide additional guidance on performing self audits of a variety of personnel practices. OFCCP offers compliance assistance seminars on how to self audit as well. You can find a regional calendar of compliance assistance seminars on our web site. At what point during the review of compensation matters will the OFCCP perform a regression analysis? A regression analysis will be conducted when there are indicators of potential systemic compensation discrimination problems. OFCCP will perform a regression analysis and provide summary results to the contractor in support of a Predetermination Notice or a Notice of Violation alleging systemic compensation discrimination. The purpose of the regression analysis is to analyze the relationship between the compensation and the legitimate factors that the contractor uses to determine pay decisions, such as work performed, responsibility level, skills and qualifications, education, performance, or other relevant experience. The regression analysis will show whether or not race and/or gender have statistically significant effects on compensation. OFCCP's review of a contractor's compensation practices generally will proceed through the following steps: Step 1: Analysis of the contractor's submission in response to Item Number 11 of the OFCCP Scheduling Letter. Step 2: After assessing the contractor's submission, OFCCP may ask the contractor for additional compensation or personnel data to determine whether further investigation is warranted. Step 3: If OFCCP determines that further investigation is required, OFCCP will conduct an on-site review in order to obtain a full understanding of the company's pay practices. Step 4: After conducting the on site review to obtain a comprehensive understanding of the contractor's pay practices, OFCCP will perform a multiple regression analysis. This is a statistical analysis which will determine whether there are any significant differences in compensation by gender and/or race that are not explained by legitimate factors. What process does OFCCP use to review a contractor's compensation practices? OFCCP uses a tiered review process to conduct most compliance evaluations. This tiered review consists of an initial desk audit review followed, where indicated, by either a focused review or a full compliance review. OFCCP examines a contractor's compensation practices as part of every tiered review. In addition, OFCCP conducts a full compliance review on a certain percentage of contractors scheduled for a compliance evaluation. During a full compliance review, OFCCP examines a contractor's total employment process, including its compensation practices. Has OFCCP developed procedures for conducting a desk audit of a contractor's compensation practices? Each of OFCCP's regional offices uses the same basic procedures for conducting a desk audit review of a contractor's compensation practices. Generally speaking, during a desk audit, the agency will examine the following three criteria when evaluating a contractor's compensation practices:
The specific thresholds used in each of the three criteria above are not static, but rather are subject to change as OFCCP continues to evaluate its targeting methodology. What should a contractor expect when a desk audit of its compensation practices reveals an indicator of potential compensation discrimination? OFCCP does not consider the outcome of a desk audit to be a final indicator of discrimination. The desk audit is a screening procedure to identify areas requiring further review, including additional data requests, on-site investigation, or witness interviews. When indicators are found, OFCCP will request detailed information on each employee in the overall workforce or appropriately determined subset. The information requested will cover those factors which OFCCP has observed to generally influence pay, as well as any influencing factors specific to the contractor. OFCCP may request data regarding any or all of the following factors, as appropriate:
The specific additional data requested by OFCCP will vary depending on the contractor's pay system and the agency's investigation. However, OFCCP has found that the above data is often helpful in examining a contractor's compensation practices. Contractors are encouraged to provide this data to OFCCP electronically whenever possible. If an evaluation of this additional data continues to reveal an indication of discrimination, then OFCCP will review the contractor's compensation practices under the Interpretative Standards for Systemic Compensation Discrimination under E.O. 11246 to determine if a violation of the law has occurred. Overriding Self-Identification May an employer override an individual's self-identification of race, gender or ethnicity based on the employer's visual observation? No. OFCCP's policy is that deference should be given to an individual's self-identification and it should not be questioned or overridden by an employer based on the employer's visual observation. Will OFCCP come out to contractors' facilities and assist them in the development of their AAPs? Generally, OFCCP does not come out to contractor facilities. However, OFCCP conducts numerous compliance assistance seminars and other activities that include assistance on developing AAPs. Contractors can find a calendar of compliance assistance seminars. You may also contact the nearest OFCCP District Office for additional information. Does the government provide or sell publications that explain how to create an Affirmative Action Program? OFCCP does not sell publications nor do the regulations require contractors to use any specific format in the development of their AAPs. However, OFCCP regulations 41 CFR Parts 60-2, 60-250 and 60-741 outline the specific content requirement for AAPs under each program. As part of its compliance assistance initiative OFCCP has posted a sample AAP on its website, which contractors should find helpful. Also, Federal contractors may contact the local District Office to make a compliance assistance appointment and/or learn about the periodic seminars that these offices conduct which are designed to share compliance assistance information with contractors and keep them informed of the latest OFCCP developments. Information on how to contact your local OFCCP District Office is located on the on our website. How do I get the availability statistics for my specific geographic area(s)? One of the requirements of an affirmative action program is determining availability of qualified minorities or women for jobs in the contractor's workforce. Availability is defined as "an estimate of the number of qualified minorities or women available for employment in a given job group, expressed as a percentage of all qualified persons available for employment in the job group." 41 CFR 60-2.14 (a). "The purpose of the availability determination is to establish a benchmark against which the demographic composition of the contractor's incumbent workforce can be compared in order to determine whether barriers to equal employment opportunity may exist within particular job groups." OFCCP regulations further provide that "[t]he contractor must use the most current and discrete statistical information available to derive availability figures." 41 CFR 60-2.14 (d). "Examples of such information include census data, data from local job service offices, and data from colleges or other training institutions." Contractors frequently use U.S. Census Bureau data to determine availability and OFCCP relies on Census data to assess whether a contractor's availability determination is reasonable. The Census Bureau's Web site presents data on race and ethnicity, cross-tabulated by other variables such as detailed occupations, occupational groups, gender, worksite geography, residence geography, education, age, and industry to determine availability. In addition, at the request of a Federal Consortium consisting of OFCCP, the Equal Employment Opportunity Commission (EEOC), the Department of Justice, and the Office of Personnel Management, the Census Bureau constructed the Census 2000 Special EEO File, which contains information on 472 occupations. The Census 2000 Special EEO File data is available under the "Access to Data from the Special EEO Tabulation" link on the Census Bureau's website. OFCCP will begin to use data from the Census 2000 Special EEO File to assess the reasonableness of the contractor's availability determinations beginning with AAP years that commence on or after January 1, 2005. See also "Notice on OFCCP's Use of Census 2000 Special EEO File for Determining Reasonableness of Availability Determinations". Have the proposed changes to the racial and ethnic categories for 2002 been adopted? The EEOC has proposed revisions to the EEO-1 and published the initial notice required under the Paperwork Reduction Act on June 11, 2003. See Agency Information Collection Activities: Revision of the Employer Information Report (EEO-1), 68 FR 334965, June 11, 2003. The initial notice proposed changes to the ethnic and racial categories on the EEO-1 report, and also to the job categories. OFCCP intends to coordinate its data collection requirements with the changes made to the EEO-1 to avoid duplicative and inconsistent burdens on the Federal contractor community. OFCCP also intends to provide a reasonable transition period before any further changes by OFCCP become effective. What is the EEO-1 "Job Classification Guide"? Where can contractors find a copy? The EEO-1 Job classification guide, published in 1996, is a pamphlet provided by the Equal Employment Opportunity Commission (EEOC) to assist employers in the correct assignment of employees according to the nine (9) EEO-1 categories. The current "Job Classification Guide" for the EEO-1 report can be found by accessing the website for the EEOC. What are the EEO-1 and Vets 100 reports and where can information regarding these reports be found? An Employment Information Report (EEO-1), also known as a Standard Form 100, is filed annually with the EEO-1 Joint Reporting Committee and provides a demographic breakdown of the employer's work force by race and gender. Standard Form 100 must be filed by covered Federal contractors who:
For additional information, individuals are encouraged to visit the following websites for the: EEO-1 Report and VETS 100 Reports. How can I learn more about OFCCP requirements? We recommend that you attend a seminar conducted by your local OFCCP office to obtain answers to any questions and receive one-on-one compliance assistance. OFCCP is committed to providing compliance assistance to all Federal contractors. Compliance assistance can be provided in a variety of ways, e.g., training seminars for individuals or groups, printed brochures and pamphlets, web-based information and tools, telephone consultations, and on-site consultations. What questions may employers ask on an employment application and what questions are employers prohibited from asking? Note that this answer is limited to the laws enforced by the Office of Federal Contract Compliance Programs (OFCCP). OFCCP is responsible for enforcing Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 (Section 503), and the Vietnam Era Veterans' Readjustment Assistance Act of 1973 (VEVRAA). Together, these laws prohibit covered federal contractors and subcontractors from discriminating on the basis of race, color, religion, sex, national origin, and status as an individual with a disability or protected veteran and require that affirmative steps be taken to ensure equal employment opportunity in employment practices. It is the general rule that employers are given wide latitude in questions that they may ask an applicant and are not expressly prohibited from asking questions about race, color, religion, sex, or national origin. However, the employer may not use the information obtained in the application process to unlawfully discriminate against an applicant or employee. It is, therefore, prudent both to avoid asking for information that will not be used in evaluating an applicant's qualifications and to determine ahead of time whether the requested information would be used in a lawful manner. Since it is illegal to make employment decisions on the basis of race, color, religion, sex or national origin, asking questions related to these protected statuses is not advised. In addition, Section 503 and VEVRAA prohibit employers from asking applicants disability-related questions (i.e., questions that are likely to elicit information about a disability) and from conducting medical examinations of applicants until after a conditional job offer is made. This ensures that an applicant's possible hidden disability will not be considered prior to the employer evaluating the applicant's non-medical qualifications. Once a conditional job offer is made, the employer may ask disability-related questions and require medical examinations, regardless of whether they are related to the job, as long as this is done for all entering employees. However, if an individual is screened out because of a disability, the employer must show that the exclusionary criterion is job-related and consistent with business necessity. Once an employee begins employment, an employer's ability to make disability-related inquiries and require medical examinations is limited. Such inquiries generally may be made or medical examinations required only if they are job-related and consistent with business necessity. What documents are employers required to retain related to the application process? With regard to recordkeeping responsibilities, OFCCP regulations require that federal contractors maintain for a period of two years from the making of the record or the personnel action, all job postings and advertisements, applications received, any interview notes, test and test results, records of job offers, and the applications themselves. Contractors with fewer than 150 employees or a contract of less than $150,000 need only keep these records for a period of one year. See 41 CFR 60-1.12(a). In addition, OFCCP regulations and the Uniform Guidelines on Employee Selection Procedures (UGESP) obligate covered federal contractors to compile and maintain applicant data in order to ensure that the selection process used during hiring does not result in discrimination against a particular protected group. See 41 CFR 60-1.12, 41 CFR 60-3.4, and 60-3.15. Accordingly, a contractor must be able to identify the race, gender, and ethnicity (Hispanic or non-Hispanic) status of all applicants. Self-identification is the most reliable method and the preferred method for compiling such information about an individual. Contractors are encouraged to use tear-off sheets, post cards, or short forms to request demographic information from applicants that can be maintained separate and apart from the applications themselves. For more information on how to comply with OFCCP's regulations regarding the collection of race, gender, and ethnicity data, see OFCCP's directive entitled "Contractor Data Tracking Responsibilities" dated April 21, 2004. Note that OFCCP is currently engaged in rulemaking to address recordkeeping requirements regarding internet applicants and has issued a proposed rule. See Obligation to Solicit Race and Gender Data for Agency Enforcement Purposes, 69 Fed. Reg. 16446 (March 29, 2004), which can be found on-line. In addition, the agencies that issued the UGESP (including the Department of Labor) also published proposed guidance regarding recordkeeping and internet applicants. See Agency Information Collection Activities: Adoption of Additional Questions and Answers to Clarify and Provide a Common Interpretation of the Uniform Guidelines on Employee Selection Procedures as They Relate to the Internet and Related Technologies, 69 Fed. Reg. 10152 (March 4, 2004), which can be found at the Government Printing Office's website. http://edocket.access.gpo.gov/2004/04-4090.htm. In addition to the requirement to collect demographic data for applicants, the regulations implementing Section 503 require employers to invite individuals to self-identify so that they can take advantage of the company's Affirmative Action Program for individuals with disabilities. For the same reasons that disability-related questions may not be asked prior to extending a job offer, the invitation to self identify must be given after an individual is made a job offer, but prior to the individual starting work. For more information regarding the invitation to self identify and when the invitation must be made, see 41 CFR 60-741.42. For a sample invitation to self identify, go on-line. Note that similar regulations exist under VEVRAA governing when employers may invite disabled veterans to self identify. See 41 CFR 60-250.42, available on-line. In addition, VEVRAA requires that contractors invite applicants to self identify as a protected veteran regardless of whether s/he has a disability. Such invitation may be done at any time before the applicant begins employment. For a sample invitation to self identify for both specially disabled and other covered veterans, go on-line.
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