[Federal Register: February 14, 2003 (Volume 68, Number 31)]
[Notices]
[Page 7617-7618]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14fe03-142]
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DEPARTMENT OF LABOR
Veterans' Employment and Training Service
RIN 1293-AA07
Annual Report From Federal Contractors
AGENCY: Veterans' Employment and Training Service, Department of Labor.
ACTION: Notice of guidance.
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SUMMARY: The Veterans' Employment and Training Service (VETS) is
providing guidance on methodologies for calculating the maximum and
minimum number of employees for the Federal Contractor Veterans'
Employment Report VETS-100.
EFFECTIVE DATE: This guidance is effective February 14, 2003.
FOR FURTHER INFORMATION CONTACT: Norman Lance, Chief, Investigation and
Compliance Division, VETS, at (202) 693-4731 or by e-mail at Lance-
Norman@dol.gov. Individuals with hearing impairments may call (800)
670-7008 (TTY/TDD).
SUPPLEMENTARY INFORMATION:
Authority: 38 U.S.C. 4212(d).
Background: The Vietnam Era Veterans' Readjustment Assistance Act
of 1974 , as amended, (VEVRAA) contains affirmative action and
reporting requirements for Federal contractors and subcontractors
regarding several classes of protected veterans. One VEVRAA requirement
is that covered Federal contractors and subcontractors file an annual
Federal Contractor Veterans' Employment Report VETS-100 (VETS-100
Report). Prior to the enactment of the Veterans Employment
Opportunities Act of 1998 (VEOA), the VETS-100 Report required
contractors to report, for each hiring location, the number of
protected veterans by job category, and number of new hires, including
protected veterans hired during the reporting period covered by the
report. VEOA amended the VEVRAA's reporting requirements by adding the
requirement that the maximum number and minimum number of persons
employed during the reporting period be included in the VETS-100
Report.
VETS published a Notice of Proposed Rulemaking (65 FR 59684,
October 5, 2000) to implement the provisions of VEOA, including the
requirement for reporting the maximum and minimum number of employees.
The Notice of Proposed Rulemaking did not contain guidance on how
covered contractors were to determine the maximum and minimum number of
employees. A commenter asserted that the proposed rule was unclear
about how the maximum and minimum number of employees had to be
determined, and asked for clarification. To respond to the concerns of
the commenter, VETS added clarifying language to the final rule (66 FR
51998, October 11, 2001) explaining how the maximum and minimum number
of employees had to be determined.
After publication of the final rule, it was brought to the
attention of VETS that the revised language might have inadvertently
increased the record keeping burden on some contractors. To permit
contractors flexibility in how they determine the maximum and minimum
number of employees, VETS published an Interim Final Rule (66 FR 65452,
December 19, 2001) that withdrew the language specifying how
contractors were to determine the maximum and minimum number of
employees. The basic statutory requirement to report the maximum and
minimum number of employees remained.
In the preamble to the interim final rule, VETS requested comments
about the methods covered contractors and subcontractors proposed to
use to calculate the maximum and minimum number of employees. VETS
intended to consider these comments in the development of guidance or
regulations about the issue. VETS was concerned that the request for
comments solely within the preamble to the interim final rule might be
overlooked. Consequently, VETS published a Notice on March 8, 2002 (67
FR 10804) reiterating the request for comments about how to determine
the maximum and minimum number of employees.
Development of Guidance: VETS received four comments: two from
human resource consultants, one from an association representing human
resource professionals, and one from an association that represents
employers. Commenters described the practical difficulties with
creating a ``one size fits all'' procedure for reporting the maximum
and minimum number of employees. For example, some contractors utilize
payroll records to track the number of employees while others use
headcounts. Some contractors maintain records by organizational unit
while others maintain records by physical location. Some contractors
count everyone on payroll as ``active employees'' while others count as
employees only those actually paid in a particular period, and do not
count employees on temporary leaves of absence or on other unpaid leave
status. Two commenters recommended methodologies for computing the
maximum and minimum number of employees. Additionally, one commenter
requested that VETS eliminate the maximum and minimum number of
employees reporting requirement. The final commenter asked how to
determine the maximum and minimum number when an employer exercises the
option to consolidate hiring locations by state.
VETS is unable to eliminate the reporting requirement for the
maximum and minimum number of employees because this reporting
requirement is mandated by VEOA. As discussed below, contractors
determining the maximum and minimum number of employees when exercising
the option to consolidate hiring locations by state may calculate their
maximum and minimum number of employees by any reasonable method of
computation. We appreciate receiving the thoughtful comments. We have
considered all concerns and recommendations made by the commenters in
developing VETS policy.
Guidance: VETS understands that contractors and subcontractors have
developed many different methods to count the maximum and minimum
number of employees in their workforces during the VETS-100 reporting
period. Consequently, VETS has decided to permit contractors to utilize
any reasonable method for contractors to compute the maximum and
minimum number of employees in their workforces. Consideration of
whether a procedure is reasonable will include how the employer
normally maintains records about its employees and whether the employer
has been consistent in its methodology for counting employees across
reporting cycles.
The following are examples of methodologies identified in the
public comments that VETS determined would be reasonable approaches for
computing the maximum and minimum number of employees for the VETS-100
Report. These examples are provided as illustrations only and other
reasonable methods are considered acceptable. Further, the examples
assume that they are based on the current record keeping practice of
the employer and that the employer consistently uses the same method
from year to year.
Methodology Based on Organizational Structure
* The number of active employees are identified each month by job
categories within an establishment and then totaled. At the end of the
reporting period, the largest number recorded is
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the maximum number of employees and the smallest number recorded is the
minimum number of employees for each location.
Methodologies Based on Payroll Systems
* The payroll system identifies the number of active employees for
each day for each location and saves that information for the whole
year. At the end of the reporting period, the largest number of active
employees recorded is the maximum number of employees and the smallest
number of active employees recorded is the minimum number of employees.
* Payroll system data is collected on a quarterly basis about the
number of employees at each establishment who either were paid wages or
benefits, or were eligible to be paid wages or benefits, that quarter.
The number of employees in the quarter with the largest number of
employees is the maximum number and the number of employees in the
quarter with the smallest number of employees is the minimum number.
* Payroll information is collected on a monthly basis about the
number of employees at each establishment who either were paid wages or
benefits, or were eligible to be paid wages or benefits, that month.
The number of employees in the month with the largest number of such
employees is the maximum number and the number of such employees in the
month with the smallest number of employees is the minimum number of
employees.
* A single payroll system for all employees in a single
establishment is utilized. Payroll records for each pay period are
maintained. The number of employees in the payroll period with the
largest number of employees would be the maximum number of employees
and the number of employees in the payroll period with the fewest
number of employees would be the minimum number of employees for the
reporting period.
Methodology Based on Company Headcount
* Many employers maintain daily establishment headcount records for
financial planning and budgeting purposes. The number of employees on
the day with the highest headcount would be the maximum number of
employees and the number of employees on the day with the least number
of employees would be the minimum number.
The above methodologies are provided as guidance only and any
reasonable method of computation of the maximum and minimum number of
employees is considered acceptable.
Signed at Washington, DC, this 10th day of February, 2003.
Frederico Juarbe Jr.,
Assistant Secretary of Labor for Veterans' Employment and Training
Service.
[FR Doc. 03-3671 Filed 2-13-03; 8:45 am]
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