Affirmative Action Plans- Compliance in Recruiting and Hiring

Did you know all employers with a total of $10,000 in federal contracts must agree to not discriminate on the basis of race, color, religion, sex, sexual orientation, gender identity or national origin, and to take affirmative action(s) to ensure equal employment opportunity? Additionally, employers with 50 or more employees and a single federal contract exceeding the amount of $50,000 annually are required to complete an annual Affirmative Action Plan (AAP). Developing this plan is the first step to prove you are taking your responsibilities to recruit and hire fairly seriously.

What is Affirmative Action (AA)?

Executive Order 11246, also known as Affirmative Action (AA), was signed into law in 1965 by former President, Lyndon B. Johnson, to create oversight of fair hiring and recruiting practices, to incentivize proactive outreach programs, and to penalize those disregarding the Title VII of the Civil Right Act requirements. These actions are to be documented in the form of an Affirmative Action Plan (AAP).

What is the Penalty of not Complying with an Affirmative Action Plan (AAP)?

Non-compliance for qualifying employers could lead to possible sanctions or disbarment. The Office of Federal Contract Compliance Programs (OFCCP) enforces affirmative action requirements and is housed within the Department of Labor.  

How Do I Know if My Organization Needs an AAP?

All employers with 50 or more employees (full-time or part-time) with a single federal contract or subcontract exceeding the amount of $50,000 annually must complete an annual Affirmative Action Plan (AAP). Companies with federal contracts totaling more than $10,000 must agree to not discriminate on the basis of race, color, religion, sex, sexual orientation, gender identity or national origin, and to take affirmative action(s) to ensure equal employment opportunity.  It is best practice for all employers to comply with Executive Order 11246 to avoid unnecessary risk.

In addition to Executive Order 11246,  the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA), requires  federal contractors with a contract valued at  $150,000 or more, regardless of the number of employees, to treat qualified individuals without discrimination based on their status as a protected veteran with respect to all employment practices and to take affirmative action to employ and advance in employment protected veterans.

Section 503 of the Rehabilitation Act of 1973 also requires affirmative action for business with federal contracts in excess of $15,000. The businesses are required to treat qualified individuals with disabilities without discrimination and to take affirmative action to employ and advance in employment individuals with disabilities. If the business has at least 50 employees and a single contract of $50,000 or more it must develop a written Section 503 Affirmative Action Plan.

What Is Included in an AAP?

The first part of an AAP in general involves a statistical analysis of the incumbent workforce including a workforce analysis, availability statistics based on the local demographics of the organization, an availability analysis, and a job group summary and utilization analysis. The second part of the AAP is to support the efforts of the organization including an analysis of applicant and promotional data, attrition reporting, an impact ratio analysis, and the action plan that specifies program goals to be achieved in the following year.

How do I Start an AAP?

Compliance starts the day you begin your AAP and we’re here to help! By calling an HR Consultant, you can have a certified professional take care of this for you. We can create your organization’s first Affirmative Action Plan (AAP) or revive your current program! We operate outside of the Office of Federal Contract Compliance Programs (OFCCP) and maintain the highest degree of confidentiality and care.

Let’s Get Started!

To contact a certified Human Resources Consultant, contact Samantha Rogers, SHRM-SCP, PHR at srogers@skywalkgroup.com.

For more information on the EEOC, you may visit the United States Equal Employment Opportunity Commission website at: https://www.eeoc.gov/eeoc/.

For more information on Affirmative Action, you may visit the Department of Labor Affirmative Action website: https://www.dol.gov/general/topic/hiring/affirmativeact.

This blog post was originally published in September 2019 and has been updated for content and clarity.