OFCCP Seeks Comments on Functional Affirmative Action Plans

OFCCP seeks comments on Functional Affirmative Action Plans. Written comments must be submitted to the office on or before July 23, 2012.

SUMMARY:

The Department of Labor, as part of its continuing effort to reduce paperwork and respondent burden, conducts a pre-clearance consultation program to provide the general public and Federal agencies with an opportunity to comment on proposed and continuing collections of information in accordance with the Paperwork Reduction Act of 1995 (PRA). 44 U.S.C. 3506(c)(2)(A). This program helps to ensure that requested data can be provided in the desired format, reporting burden (time and financial resources) is minimized, collection instruments are clearly understood, and the impact of collection requirements on respondents can be properly assessed. Currently, the Office of Federal Contract Compliance Programs is soliciting comments on its proposal to implement standard procedures for supply and service contractors seeking approval to develop affirmative action programs based on functional or business units. A copy of this information collection request (ICR), with applicable supporting documentation; including among other things a description of the likely respondents, proposed frequency of response, and estimated total burden may be obtained from the RegInfo.gov Web site at http://www.reginfo.gov/public/do/PRAMain.

Background:

The Office of Federal Contract Compliance Programs (OFCCP) administers three nondiscrimination and equal employment opportunity laws. These authorities prohibit employment discrimination and require affirmative action to ensure that equal employment opportunities are available regardless of race, sex, color, national origin, religion, or status as a qualified individual with a disability or protected veteran by Federal contractors.

Executive Order 11246, as amended (EO 11246);
Section 503 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. 793; and
The affirmative action provisions of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended, 38 U.S.C. 4212.

For purpose of this clearance, the regulations implementing Executive Order 11246 permit Federal supply and service contractors to develop affirmative action programs (AAPs) that are based on business function or business unit rather than AAPs based on establishments.

Functional affirmative action programs (FAAPs) are designed to provide contractors with the option of creating AAPs that better fit their business needs.
To develop and implement a FAAP, Federal contractors must receive written approval from the Director of OFCCP. On March 21, 2002, OFCCP issued guidance outlining procedures for approving contractors’ requests to use functional AAPs.
Subsequently, on June 14, 2011, OFCCP issued new guidance and established standard procedures for FAAP approvals.
This Information Collection Request (ICR) addresses the collection of information associated with the process for obtaining, modifying, updating, and renewing an agreement that allows contractors to develop and use functional AAPs.

Let the buyer beware. Federal Contractors must do the following as part of the FAAP agreement:
(http://www.dol.gov/ofccp/Presentation/FAAP_Presentation_Aug09.pdf)

Must notify OFCCP of significant changes in its corporate structure within 30 days

Modification request must be approved by OFCCP Director

Failure to notify OFCCP Director of changes to its corporate structure may result in termination of the FAAP Agreement

Notify OFCCP annually of minor FAAP changes, e.g., HR representative, address change, etc.

Failure to update annually may result in a compliance evaluation

No automatic renewal; must be approved by the OFCCP Director

Failure to submit a renewal request within 120 days, will result in expiration of FAAP Agreement. Establishment based AAPs are required once the FAAP agreement expires.

Must have two units undergo compliance evaluation to be eligible for renewal

For more information, please read this recent post on Functional Affirmative Action Plans.