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Compliance Assistance for New and/or Small Contractors

Developed in conjunction with the

OFCCP Sample Affirmative Action Program (AAP)

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Who Must Develop an AAP?

• 50 or more employees AND:

• Contracts in excess of $50,000; OR

• Depository of government funds; OR

• Paying and issuing agent of U.S. Savings Bonds; OR

• Bills of Lading in excess of $50,000 (per year)

41 CFR § 60-2.1(b)

Federal Contractors/subcontractors With:

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What is an Affirmative Action Program?

A written strategic plan designed to promote equal employment opportunities.

It includes policies, practices, and procedures the contractor implements which allows all qualified applicants and employees to participate equally in the recruitment, selection, advancement, compensation, and every other term and privilege associated with employment.

AAP

41 CFR § 60-2.10(a)(3)

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How is an Affirmative Action Program used?

• Tracks progress in all employment actions

• Allows federal contractors to evaluate

employment processes and compensation

• Identifies problem areas and promotes

corrective action

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Executive Order11246 AAP

Requirements

• Organizational Profile*#1

• Job Group Analysis*#2

• Availability Analysis*#4

• Placement Goals*#6

• Designation of

Responsibility

• Identification of Problem

Areas

• Action-Oriented

Programs

• Internal Audit and

Reporting

• Support Data*#7-11

*Scheduling Letter Itemized List

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Organizational Display

• For each organization unit, the display must

indicate:

– The name of the unit

– Title, gender, race, ethnicity of the unit supervisor

– Total # of male and female incumbents

– Total # of male and female incumbents in each of the following groups: Blacks, Hispanics, Asian/Pacific Islanders, and American Indians/Alaskan Natives

41 CFR § 60-2.11(b)

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Federal Contractor, Inc. (FCI)

January 1, 2011

Sample AAP Page 3

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Workforce AnalysisSample AAP Page 4

• A listing of each job title ranked from the lowest paid to the

highest paid within each department or similar organizational

unit including departmental or unit supervision

• For each job title, the total number of incumbents, total number of male and female incumbents, and the total number of male and female incumbents for each ethnic group represented

Note: All titles, including all managerial titles,

must be listed 41 CFR §60-2.11(c)

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FCI - Workforce Analysis January 1, 2011 (Sample AAP, Page 4)

DEPARTMENT/WORK UNIT: Administration MALES FEMALES

Job titleWage Rate

EEO-1 Category

Job Group

Total Employees

TOT W B AI NA H TOT W B AI NA H

General Manager S-A 1 1 1 1 1

Personnel Manager S-D 1 1 1 1 1

Executive Assistant S-J 5 5 1 1 1

Administrative Assistant H-8 5 5 1 1 1

File Clerk H-11 5 5 2 1 1 1 1

DEPARTMENT TOTAL 6 3 2 0 0 0 1 3 1 1 0 1 0

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Job Groups• Combines jobs at the

establishment with similar:–Content (duties)

–Opportunity (training, transfers, promotions)

–Wage Rate (pay ranges, bonus, benefits)

• Smaller contractors (<150 employees) may use EEO-1 categories as job groups – 41 CFR § 60-12(e))

41 CFR § 60-2.12

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Job Group Analysis

• Must include a list of the job titles that comprise each job group.

• All jobs located at an establishment MUST BE REPORTED in the job group analysis of that establishment.

41 CFR § 60-2.12(c)

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Job Group Analysis: Listing of Titles Page 9-10

Job TitlesJob Group Name

EEO-1 Category

General Manager

1 Officials & Managers

Controller

Pricing-Billing Manager

Sales-Customer Support Manager

Interior Design Manager

Personnel Manager

Installation Manager

Installation Supervisor

Furniture Repair Supervisor

Office Space Planner

2 Professionals

General Ledger Accountant

Payroll Administrator

Purchasing Agent

Pricing Specialist

Office Equipment Sales Rep 4 Sales Workers

Job TitlesJob Group Name

EEO-1 Category

Executive Assistant

5 Office & Clericals

Administrative Assistant

File Clerk

Billing Clerk

Inventory Control Clerk

Material Pricing Clerk

Customer Info Sales Rep

Call Center Agent

Customer Svc Complaints Clerk

Systems - Specialist

6 Craft WorkersInstaller

Furniture Repair

Truck Driver7 Operatives

Forklift Operator

Installer Helper8 Laborers

Receiving

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Utilization AnalysisPlacement of Incumbents in Job Groups

Itemized Listing # 3Sample AAP Page 11

• Contractor must separately state the percentage of minorities and the percentage of women it employs in each job group.

41 CFR § 60-2.13

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Utilization AnalysisPlacement of Incumbents in Job GroupsJanuary 1, 2011 (Sample AAP Page 11)

Job GroupTotal # of

Incumbents # of Females

Female Incumbency

% # of Minorities

Minority Incumbency

%

1 9 0 0.00% 1 11.1%

2 22 10 45.45% 4 18.2%

4 10 2 20.00% 0 0.0%

5 30 25 83.33% 13 43.3%

6 46 4 8.70% 15 32.6%

7 10 1 10.00% 3 30.0%

8 16 1 6.25% 6 37.5%

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Determining AvailabilityItemized Listing # 4

Sample AAP Page 12

• An estimate of the number of qualified minorities or women available for employment in a given job group …

• Expressed as a percentage

• Considers two factors:– External– Internal

41 CFR § 60-2.14

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1. Requisite Skills in Reasonable Recruitment Area: The percentage of minorities or women with requisite skills in the reasonable recruitment area

http://www.census.gov/eeo2000/index.htmlState Employment Service Data College Graduation Data

2. Internal Promotable/Trainable Pools: The percentage of minorities or women among those promotable, transferable, and trainable within the contractor’s organization.

2 Factor Availability Analysis

60-2.14(c)(1-2)

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Job Group: Total Employees in Job Group:

Factor raw statistics weighted factor Plan Year:

Minority Female Weight Minority female

Data Source: 2000 U.S. Census of the U.S. Population, Houston Metropolitan Statistical Area

External: % of minorities or women with requisite skills in a reasonable recruitment area

22 Professionals

18.4 40.2 10%

18.4 x .10 = 1.84

1.84

40.2 x .10 = 4.02

4.02

Two Factor Availability Analysis: Factor 1Two Factor Availability Analysis: Factor 1

2011

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Apply the feeder group statistics for the Factor 2 AnalysisApply the feeder group statistics for the Factor 2 Analysis

Job Group: Total Employees in Job Group:

Factor raw statistics weighted factor Plan Year:

Minority Female Weight Minority Female

Data Source: Feeder job group statistics of employees that are promotable, transferable and trainable.

Internal: % of minorities or women promotable, transferable and trainable within the organization.

FEEDER GROUP: Administrative Support based on Gained skilled

22 Professionals

20.1 44.6 90%

20.1 x .90 = 18.09

18.09

44.6 x .90 = 40.14

40.14

Two Factor Availability Analysis: Factor 2Two Factor Availability Analysis: Factor 2

2011

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Utilization Analysis: Determining Availability(Sample AAP Page 12)

Job Group: 2 Raw StatisticsValue

WeightWeighted Statistics

Sources of Statistics

Reason for

Weighting

  Minority Female   Minority Female    

1. Percentage of minorities or women with requisite skills in the reasonable recruitment area.

(EXTERNAL)

18.40% 40.20% 10.00% 1.84% 4.02%2000

Census Data

Specialized work

2. Percentage of minorities or women among those promotable, transferable, and trainable within the contractor's organization.

(INTERNAL)

20.10% 44.60% 90.00% 18.09% 40.14%Feeder Group

– ADMIN Support

We train internally

to develop a feeder

pool.

Totals 100.00% 19.93% 44.2%    

Note: Please note that the chart includes fictionalized numbers designed for illustrative purposes.

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Comparing Incumbency to AvailabilityItemized Listing # 5

Sample AAP Page 13

• … compare the % of minorities and women in each job group with the availability

• When the % of minorities or women employed in a particular job group is less than would reasonably be expected given their availability percentage in that particular job group, the contractor must establish a placement goal

41 CFR § 60-2.15

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Establishing Placement GoalsItemized Listing # 6

Sample AAP Page 13

• Placement goals serve as objectives or targets

• Annual placement goal at least equal to the availability figure derived for women or minorities, as appropriate

• In all employment decisions, the contractor must make selections in a nondiscriminatory manner

41 CFR § 60-2.15/16

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Utilization Analysis: Comparing Incumbency to Availability and Establishing Placement Goals

Job Group

Female Incumbency

%

Female Availability

%

Establish Goal?

Yes/No

If Yes, Goal for Females

Minority Incumbency %

Minority Availability

%

Establish Goal?

Yes/No

If Yes, Goal for

Minorities

1 0.0% 47.6% Yes 47.6% 11.1% 18.1.% Yes 18.1%

2 45.5% 43.8% No   18.2% 8.2% No  

4 20.0% 34.5% Yes 34.5% 0.0% 12.4% Yes 12.4%

5 83.3% 87.7% No 43.3% 27.6% No  

6 9.3% 5.5% No   34.9% 23.2% No  

7 10.0% 6.3% No   30.0% 37.5% No

8 6.3% 19.1% Yes 19.1% 37.5% 26.3% No  

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Goals Are Not Quotas

CFR 60-2.35

Contractors are not measured by whether or not it meet its goals, but

rather by the good faith efforts it demonstrates.

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Designation of Responsibility for Implementation

CFR 60-2.17(a)

Assigning responsibility and accountability to

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Identification of Problem Areas

41 CFR § 60-2.17(b)/(c)

Action-Oriented Programs

Good Faith Efforts

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Document personnel activities

Require internal reports

Review results with all levels of management

Advise top management of program effectiveness

Recommend improvement

Internal Audit and ReportingItemized Listings # 9, 10, 11

41 CFR § 60-2.17(d)

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Support Data and

Recordkeeping

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Support Data(Itemized Listing - # 7 and 8)

• EEO-1/Standard Form 100 for the last three years

• CBA – Copies of the Collective Bargaining Agreements

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Support Data (Itemized Listing – # 9)

• Information on Affirmative Action Goals:

• For the preceding AAP year

• Where applicable for the current AAP year

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Support Data(Itemized Listing - # 10)

• Data on employment activity (applicants hires, promotions, and terminations) for the preceding AAP year.

• Employment activity data for the current AAP year, (if six months or more into current AAP year)

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Support Data Prior Year 01/01/2010 thru 01/31/2010 Part I

Officials and ManagersJob Group 1

External Hires External ApplicantsPromotions - INTO

Job GroupPromotions - FROM

Job Group

MALES FEMALES MALES FEMALES MALES FEMALES MALES FEMALES

White

Black/African American

Asian/Pacific Islander

American Indian/Alaskan Native

Hispanic

Two or more

Race Missing or Unknowns

TOTAL (count each person once only)

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Support Data Prior Year 01/01/2010 thru 01/31/2010 Part II

Officials and ManagersJob Group 1

Voluntary Terminations &

Retirements

Involuntary Terminations

Layoffs Recalls

MALES FEMALES MALES FEMALES MALES FEMALES MALES FEMALES

White

Black/African American

Asian/Pacific Islander

American Indian/Alaskan Native

Hispanic

Two or more

Race Missing or Unknowns

TOTAL (count each person once only)

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Support Data(Itemized Listing # 11)

Annualized Compensation Data– Wages, Salaries, Commissions, and Bonuses– By either:

• Job Group, Rate, Grade, or Level showing• Total Number of Employees by Race and Gender

and Total compensation by Race and Gender• Prefer in an electronic format.

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TOTAL

9 - SERVICE WORKERS

8 - LABORERS

7 - OPERATIVES

6 - CRAFT WORKERS

5 - ADMINISTRATIVE

4 - SALES WORKERS

3 - TECHNICIANS

2 - PROFESSIONALS

1A - MIDLEVEL MGRS & SUPR

1 - EXECUTIVES

TOTAL COMBINE

D MINORITI

ES SALARIE

S

NUMER OF

MINORITIES

TOTAL COMBINED NON-

MINORITIES

SALARIES

NUMER OF NON-MINORITI

ES

TOTAL COMBINE

D FEMALE'S SALARIE

S

NUMBER OF

FEMALES

TOTAL COMBINED MALES SALARIE

S

NUMBER OF

MALESJob Group/Salary Grade

January 1, 2011Date

Compensation Analysis – Data Submissions - DATE

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Recordkeeping• Federal contractor’s are required to maintain

employment records

– Job applications, resumes, self-identifications forms,

interview notes, etc.

• Must be able to provide gender and race or

ethnicity for each employee

• Where possible, the gender, race, or ethnicity for

each applicant or Internet Applicant

41 CFR § 60-1.12(c)

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Adverse Impact

A substantially different rate of selection in hiring, promotion & other employment decisions, which works to the disadvantage of members of a race, sex or ethnic group

41 CFR § 60-3.4

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80% Rule (4/5’s Rule)

A comparison of selection rates between groups to check adverse impact

Total M F Applicants: 292 234 58Hires: 93 91 2

Hire Rates: 38.9% 3.4%

IRA = 0.09 (3.4/38.9) which is less than .80

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Component Analysis

• If an adverse impact analysis shows that the total selection process for a job has adverse impact, the individual components of the selection process should be evaluated for adverse impact

• Must include each component in the total employment process

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Component Analysis Explained

• Identify the steps in the employment process

– Fill Out Application – Pre-Screen– Pre-Employment Test– Interview– Drug Test – Hire

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Adverse Impact Analysis Promotions/Transfers/Terminations

• Promotions – – Initial incumbents or qualified pool versus number promoted

OUT OF (how many did you start with/consider?)

• Transfers –– Qualified pool of consideration, who was eligible or initial

incumbency

• Terminations/Layoffs –

– Voluntary versus Involuntary, be prepared to explain. If the turnover is over 50%, you may need to add hires for the year to the beginning incumbency data.

Adverse IRA finding is only a preliminary indicator.

It is not proof of discrimination.

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Additional Requirements(Job postings and Notices)

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Section 503 and VEVRAA Affirmative Action Programs

• The prescribed AAP for individuals with disabilities and protected veterans may be develop separately or combined.

• Affirmative Action program required under Section 503 and VEVRAA do not require numerical placement goals.

• See Sample AAP Pages B1-B15

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The Rehabilitation Act of 1973, as amended

(Section 503) Sample AAP Page 32 or Appendix B

• Government contract and subcontracts in excess of $10,000 for the purchase, sale or use of personal property or nonpersonal services.

• The Americans with Disabilities Act, as amended (ADA), Section 503, and VEVRAA, all require reasonable accommodations.

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Vietnam Era Veterans’ Readjustment Assistance Act

(VEVRAA) (Section 4212) Sample AAP Page 32 or Appendix B

• Government contract of $100,000 or more, entered into or modified on or after December 1, 2003, for the purchase, sale or use of personal property or nonpersonal services

• Mandatory Job listing requirements with the local state employment service

• Easily verified by OFCCP

• Vets-100 filing

41 CFR § 60-300

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Assistance from OFCCP

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Compliance Assistance

• Ask OFCCP a specific question:– Call: 1 (800) 397-6251 press 1 for AAP– Or local office, listed in the brochure provided

with the scheduling letter– E-mail: OFCCP-Public@dol.gov

• http://www.dol.gov/ofccp/

– Bookmark or save as a favorite

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Website

• http://www.dol.gov/ofccp/ – Bookmark or save as a favorite

– FAQ – Frequently Asked Questions– Compliance Assistance– Highlights– Most Requested Items– Phone Numbers of the various offices and key

contacts

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QUESTIONS???