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New functional affirmative action plan directive from OFCCP
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Effective June 14, 2011, the OFCCP has issued a new Functional Affirmative Action Plan directive that administers the application, updating, adjustment, renewal, and administration of Functional Affirmative Action Plan agreements. The agreements permit covered federal contractors to develop affirmative action plans along functional or business units, rather than by physical establishment. This effectively ends the OFCCP’s lengthy moratorium on any new requests for, and modifications to the agreements.
Under the federal affirmative action plan regulations, covered contractors must include all employees in a written affirmative action plan and maintain a separate plan for each physical establishment of at least 50 employees. This method of constructing AAPs is known as the “establishment model.” The affirmative action plan regulations also permit covered contractors to develop Affirmative Action Plans based on functional or business units. The plans thus prepared are known as “functional affirmative action plans” or FAAPs. Before contractors can prepare FAAPs, they must secure permission from, and enter into a FAAP agreement with, OFCCP.
The new directive indicates that OFCCP will be cautious and skeptical in its approval of FAAPs and more FAAP compliance audits will be conducted. By increasing the number of FAAP reviews, they may be trying to combat the perception that having a FAAP provided a “safe-harbor” from frequent audits. The new directive also permits OFCCP to terminate FAAP grants with relative ease. For instance, a FAAP agreement may be terminated when a contractor fails to notify them of significant corporate structure changes that affect the functional or business unit within 30 days of such change. They also can terminate a FAAP grant based upon any violation of the affirmative action regulations identified during an audit. Finally, they may initiate a compliance review where a contractor fails to update them on any minor change within 30 days of the anniversary of the FAAP grant. OFCCP also shortened from five years to three years the duration of FAAP grants. These changes and the heightened scrutiny by them should lead existing employers and employers considering seeking a FAAP to carefully weigh the pros and cons of having a FAAP under the new directive.
For questions about this new ruling contact Career Resources, your affirmative action plan consultant.
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James Gutierrez is expert as affirmative action consultant. Human resource professionals like to receive his affirmative action plan news.
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