Copyright 2014 HudsonMann, Inc.

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1 Welcome to HudsonMann s EEO and Affirmative Action for Managers and Supervisors. This course will introduce you to the elements of Equal Employment Opportunity and Affirmative Action legislation. You will gain an understanding of the critical role that you must play in the EEO and Affirmative Action process. 1

2 This course is made up of 5 short chapters. Each chapter has a review at the end to help you assess your mastery of the subject matter. If you don t have time to complete the course in one sitting, your progress will be saved at the end of each chapter so you can pick up where you left. There is also a course completion survey at the end of the course. You must complete the survey to receive your completion certificate. Let s begin! 2

3 Chapter One introduction to EEO and Affirmative Action. This chapter will provide objectives for the course and explain the general definitions of Equal Employment Opportunity (EEO) and Affirmative Action. 3

4 Specifically, the course objectives are: Identify if your company is an EEO and/or Affirmative Action employer Understand what the government requires and why Be able to identify and assist in correcting any problem areas that your company has in implementing EEO & Affirmative Action Understand how EEO and Affirmative Action are good for business Implement EEO & Affirmative Action practices in your everyday workplace tasks 4

5 What is EEO? 5

6 The acronym EEO stands for equal employment opportunity Equal Employment Opportunity exists when decisions, practices and procedures relating to the workplace are made in a way that gives everyone an equal chance to succeed. This means that all decisions and employment practices must be made free of illegal discrimination. 6

7 Therefore, recruitment and testing, hiring, work assignment, compensation and benefits, promotions, and career development, discipline and discharge and any other employment decisions must be made without illegal discrimination. 7

8 United States law protects employees and job seekers based on a number of different attributes. These protected classes include: race, color, religion, sex, national origin, age, disability and genetic information. Employers are forbidden to make employment decisions based upon an employee's status as a member of a protected class or because of protected traits. 8

9 DID YOU KNOW? As of April 8, 2015, Federal contractors and subcontractors are prohibited from discrimination based on sexual orientation and gender identity. Discrimination based on gender stereotypes is also considered to be sex discrimination and is therefore illegal. 9

10 That leads us to the next big question: is your company required to be an EEO employer? If your company employees 15 or more employees, then the answer is yes. 10

11 What is Affirmative Action? 11

12 Closely related to EEO is the concept of Affirmative Action. While this term is highly politicized, it is based in some simple concepts. At its highest level, Affirmative Action is a commitment by a company to make good faith efforts. These efforts are aimed at eliminating employment barriers to women, minorities, veterans and individuals with disabilities. While EEO simply prohibits discrimination, Affirmative Action also calls for reaching out to groups that have faced discrimination. For many companies, Affirmative Action also involves the creation and use of written Affirmative Action Programs commonly known as AAPs. These AAPs, sometimes called Affirmative Action Plans, include a set of policies, processes and quantitative analyses, but more on that later 12

13 It is important to know that Affirmative Action does not mean quotas. Nor is it a requirement to extend preference to unqualified candidates. In fact, quotas and set asides are specifically prohibited in Federal Affirmative Action regulations. 13

14 Is your company required to be an Affirmative Action employer? If your company has $10,000 dollars or more in Federal contracts or subcontracts, it is required to be an Affirmative Action employer. What your company must do to fulfill these requirements depends on the size of the company, the dollar value of Federal contracts it holds, and the type of Federal contracts or subcontracts it performs. 14

15 For the purposes of Affirmative Action, the government divides contractors into two basic categories: supply and service contractors and construction contractors. Supply and service contractors include businesses that sell goods and non construction services to the Federal government. This includes manufacturers, retail, financial institutions, insurance providers and various service industries. The definition of a construction contract is: Any contract for the construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings or highways, or other changes or improvements to real property. Due to the fluid nature of construction employment, the government, instead of the contractor, sets the goals and outlines the efforts that must be taken. These requirements are set down in the Construction Contractors Technical Assistance Guide. Some companies may have both kinds of contracts and need to comply with both sets of requirements. 15

16 For Supply and Service Contracts the following coverage thresholds dictate the extent of a company s Affirmative Action responsibilities: At $10,000 of Federal contracts or subcontracts, companies must take Affirmative Action toward women, minorities, and individuals with disabilities At $50,000 or more: Contractors with 50 or more employees must maintain a written Affirmative Action Program. The specific requirements for this type of program are outlined in chapter three of this course. For single contracts or subcontracts of $100,000 or more, companies are also required to take Affirmative Action toward covered veterans. 16

17 For those contractors who meet the fifty thousand dollar and fifty employee threshold for written Affirmative Action programs, a separate AAP must be developed for each location with 50 or more employees. 17

18 There are three additional ways that financial institutions can fall under Affirmative Action regulations: Institutions that serve as depositories of Federal funds, in any amount are covered, as are institutions that are issuing and paying agents of US savings bonds. Institutions that subscribe to FDIC or NCUA insurance are also covered. It is worth noting here that there is some dispute within the Federal government itself as to whether these insurances create Affirmative Action obligations. The agency that enforces Affirmative Action believes these institutions are covered, and is intent on monitoring them. Therefore, each organization must make their own legal and risk assessment on whether to comply with Affirmative Action regulations. 18

19 AAP requirements extend to subcontractors as well. In fact, the requirements can flow down to any tier. The determining factor is whether the product or service provided by the subcontractor is necessary to the fulfillment of the prime contract. If so, then the Affirmative Action requirements apply to that subcontractor. 19

20 So now that you know whether or not your company needs to be an EEO and Affirmative Action employer, there is still the question of why should you be one? We think there are four compelling reasons to be an EEO and Affirmative Action employer: First, IT'S THE LAW: As we ve seen, and will explore more in the next chapter, your company may be required by law to be an EEO & Affirmative Action employer. Failing to fulfill these obligations can lead to lawsuits, fines, bad press, and loss of government contracts. Second, IT INCREASES PRODUCTIVITY: The equitable work environments that successful EEO & Affirmative Action programs create help relieve tension in the workplace. Happy workers do better work so ensuring non discrimination enhances employee engagement. Third, it HELPS YOU MANAGE YOUR WORKFORCE: The statistical analyses required for written AAPs provide great visibility into the workforce. This helps you fix problem areas and attract better job candidates. Finally, IT'S THE RIGHT THING TO DO: Nobody wants to face discrimination. Discrimination is not only illegal and bad for business, it s just plain wrong. 20

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