Many people think of nondiscrimination and affirmative action as the same.  However, there is a difference.  Nondiscrimination requires the elimination of all existing discriminatory practices and conditions.  Affirmative action requires special efforts to recruit and employ groups who may have been discriminated against in the past.

Since 1965, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has been committed to ensuring that government contractors comply with the equal employment opportunity and the affirmative action provisions of their contracts.  The OFCCP administers and enforces Executive Order 11246, which prohibits federal contractors and federally-assisted construction contractors and subcontractors, who do over $10,000 in government business in one year, from discriminating in employment decisions on the basis of race, color, religion, sex or national origin.

The Executive Order also requires government contractors to take affirmative action to insure that equal opportunity is provided in all aspects of their employment. Each government contractor with 50 or more employees AND $50,000 or more in government contracts is required to develop a written affirmative action program (AAP) for each of its establishments.

Does Your Organization Need an AAP?

Each non-construction contractor/subcontractor with 50 or more employees is required to develop a written AAP for each of its establishments within 120 days from the start of the federal contract.  The AAP must then be updated every year the organization maintains a federal contract.  If you answer “YES” to just one of the following questions you are REQUIRED to have a written AAP in place:

• Is your organization a Prime Contractor OR First Tier Sub-Contractor, accepting $50,000 or more in federal contract revenue?
• Is your organization a financial institution that is an issuing and paying agent for U.S. Savings Bonds and Savings Notes in any amount?
• Does your organization serve as a depository of federal funds in any amount?
• Does your organization have government bills of lading which in any 12-month period total, or can reasonably be expected to total $50,000 or more?

The High Cost of Non-Compliance

The OFCCP conducted 4,412 compliance reviews in fiscal year 2002, resulting in $24 million in citations!  If the OFCCP chooses your organization for a compliance review, the organization can be hit with severe penalties if it is not in full compliance.  These penalties include:

• Current government contracts could be cancelled.
• The organization could be barred from receiving government contracts.
• Back pay can be awarded as the result of pay disparities.
• Fines can be assessed due to non-compliance citations.
• Criminal penalties could be charged for filing false information.

For more information, please contact:
Ed Krow, Senior Human Resources Consultant, Vantagen, LLC
Ed.Krow@VantagenLLC.com
717-314-3680