4/23/2014. The 7% Solution: New Standards for Government Contractors. Overview of New Rules. Overview of New Rules

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1 The 7% Solution: New Standards for Government Contractors Glenn Schlabs Brooke Colaizzi Amended the regulations implementing the requirements under the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA) and the Rehabilitation Act of C.F.R. Parts and , respectively Effective March 24, 2014 Anti-discrimination requirements remain Big impact affirmative action plans Veterans regulations established a uniform threshold-- $100,000 in contracts (and subcontracts) and 50 or more employees for Veterans Affirmative Action Plans (AAP) Threshold for Section 503 coverage - contracts and subcontracts in excess of $10,000; written AAP required if $50,000 in contracts or subcontracts and 50 or more employees 1

2 Pre-existing affirmative action programs grandfathered in until next AAP year New affirmative action plans must comply immediately EO clause incorporation Specific language required Hiring benchmarks/utilization goals Compare hires to benchmark/goals Invitation to self-identify Pre-offer too EEOC says if for AA purposes, no ADA problem Written notice of AA to subs Suppliers, vendors, hiring halls Internal dissemination of AA policy Policy manual Otherwise available Posting of policy portion of AAP Data collection/analysis Audit yearly 2

3 Review processes For job qualification standards For consideration of QIWDs Job listings (vets) In a manner permitted by job service Give OFCCP access to documents Inform of data formats Provide data in requested format EEO Clause Incorporation Into subcontracts (flow-down) Vets Disabled Requires Specific language incorporating EO FAR clause Citation to 41 C.F.R (a) and (a) Bold text Notice of AA Subs, vendors, suppliers (f)(1)(ii) (f)(1)(ii) Internally Posting policy statement, plus (g) / (g) Policy manual Notice to union Other actions suggested 3

4 Notice of AA Solicitations/ads for employees Must state will be considered Regardless of veteran status or status as QIWD OFCCP notices or posters Also post electronically with a link Continue to post the current version until replaced Affirmative Action Program - General / Invitation to self-identify / Pre-offer Before making offer May be in application Post-offer After offer before employment For vets must mention specific protected categories Affirmative Action Program - General Self-identification For vets Appendix B to Part Contains both pre- and post-offer invitation wording For disabled no example provided Use vets forms as model Must keep self-id confidential As a practical matter, provide invitation to rest of workforce too AAP must be available to employees/applicants Minus metrics 4

5 Affirmative Action Program - General Must be reviewed and updated annually By designated official AAP prepared within 120 days of contract start date Must provide to OFCCP within 30 days of their request Benchmark/Utilization Goals Benchmark (vets) National percentage of vets in labor force (8%) Or, derived from BLS and VETS/ETA data in particular area Applied across entire workforce Benchmark/Utilization Goals Utilization goals (disabled) % Apply to each EO job group If 100 or fewer employees, MAY apply across entire workforce 5

6 Policy statement Vets (a) Post on bulletin boards Top executive s support Assign overall AAP responsibility Assurances Disabled (a) Same Review of personnel processes (b) / (b) MUST describe review/modifications Must design procedures for review Appendix C to vets regs provides example Review of physical/mental qualifications for jobs May screen out based on business necessity of qualifications Or based on direct threat For vets - must make a statement of reasons to support Reasonable accommodation Must confidentially notify vet/qiwd if reasonably believe poor performance is due to disability Appendix B to has optional procedures 6

7 Procedures to counter harassment Disseminate policy/outreach/recruitment Outreach/recruitment examples are listed (f)(2) (f)(2) Must assess effectiveness annually Keep this and other documentation for 3 years! Disseminate internally Develop internal procedures Put in policy manuals, notify unions if party to CBA Encouraged to inform all employees, publicize in media, hold meetings, etc. Appoint a responsible official Identity should be on all internal and external AAPrelated communication Design and implement a system to audit effectiveness Measure effectiveness Measure compliance with obligations Document actions to comply and to bring into compliance As a practical matter have you reached the 7% or 8% goals? Training Personnel involved with recruitment, screening, selection, promotion, discipline 7

8 Data analysis (k) / (k) Requirements keep for 3 years! Total number who self-id or are otherwise known who apply Total number of jobs open and filled Total number of all applicants Total number of applicants hired who are vets or disabled Total number of applicants hired Yikes! Record Access If information retained in more than one format, must provide in format preferred by OFCCP OFCCP pledges to treat information as confidential to the extent permitted by FOIA Enforcement DOL Solicitor s Office: Focus during first year will be good faith efforts and training Nothing guarantees a tempered approach from compliance officers 8

9 Recent Assistance from OFCCP Vets benchmark database and user instructions Can check data by state Detailed instructions/examples for individualized benchmarks Outreach database for vets/disabled Identifies organizations By state/category of job Tips Ensure you have the processes in place to collect the required data Offer your entire workforce the opportunity to selfidentify as soon as possible Make language changes to advertisements and contracts immediately Figure out where you are on utilization and develop a specific plan to meet benchmarks 9