Compliance Checklist: Revised Section 503 & VEVRAA Regulatory Requirements for Federal Contractors and Subcontractors
This checklist summarizes the major changes to Section 503, effective March 24, 2014, that require contractor action. It is not all-inclusive of regulations for individuals with disabilities. Subpart A Contractor obligations to items under Subpart A became legally effective on March 24, 2014. 60-741.5 Equal opportunity clause [ ] Include an EEO clause in every subcontract or purchase order in excess of $10,000. Refer to this section of the regulations for the verbiage you must use. (6) and (d) [ ] Ensure that remote employees and online applicants are informed of the EEO clause. (4) [ ] For any location that has a collective bargaining agreement, notify each labor organization or representative of workers that your organization is bound by the terms of Section 503 of the Rehabilitation Act, is committed to take affirmative action to employ and advance in employment and shall not discriminate against individuals with disabilities. (5) [ ] Clearly state the EEO tagline in all solicitations or advertisements for employees. (7) Acceptable: EEO/Minority/Female/ Veterans/Disabled Unacceptable: M/F/D/V Subpart C Contractors should come into compliance with items under Subpart C during their first transitional AAP starting after March 24, 2014. If a contractor cannot come into compliance by the start of their transitional AAP, the contractor must be prepared to show steps it has put in place to come into compliance. 60-741.42 Invitation to self-identify [ ] Extend an invitation to self-identify to applicants (pre-offer), hires (post-offer) and existing employees the first year of coverage and then five years afterwards. Your organization must use the OFCCP Self-Identification form. This form may not be altered. Regulatory Requirements for Federal Contractors and Subcontractors 2
60-741.44 Required contents of affirmative action programs [ ] On the EEO policy statement, indicate the chief executive officer s support for the affirmative action program. The OFCCP does not require that the policy statement be signed by this individual but does strongly encourage a signature. (a) [ ] Post the most current policy in a conspicuous place, such as a company bulletin board. (a) [ ] Periodically review personnel processes and make any necessary modifications to ensure that these obligations are carried out. In any affirmative action programs required under this part, include a description of the review and any necessary modifications to personnel processes or development of new processes. (b) [ ] Maintain and document a schedule for the review of all physical and mental job qualification standards to ensure that qualification standards do not tend to screen out qualified individuals with disabilities, that they are job-related for the position and that they are consistent with business necessity. (c) Examples of a schedule include reviewing the qualifications annually or reviewing prior to posting a requisition. [ ] Ensure that if an employee with a known disability is having performance issues and you can reasonably conclude that the performance problem is directly related to the disability, your organization will confidentially notify the employee of the performance problem and inquire whether the problem is related to the employee s disability, and if it is, ask if a reasonable accommodation is needed. (d) (1) [ ] Develop and implement procedures to ensure that your employees are not harassed on the basis of disability. (e) [ ] Perform effective outreach to recruit qualified individuals with disabilities. Keep records of job postings and contacts made with outreach and recruitment sources, as well as the contact information of all outreach and recruitment sources. (f) [ ] Send written notification of your company policy related to its affirmative action efforts to all subcontractors, including subcontracting vendors and suppliers, requesting appropriate action on their part. This notification must be sent out annually to subcontractors and vendors with contracts over $10,000. Keep proof that the notification was sent out. (f) (1) (ii) This section of the regulations provides several examples of effective outreach. Examples of proof include a copy of a sent email or a written response from a subcontractor regarding compliance. Regulatory Requirements for Federal Contractors and Subcontractors 3
[ ] Annually review the effectiveness of the outreach and recruitment efforts taken over the previous 12 months. Document each evaluation, including, at a minimum, the criteria you used to evaluate the effectiveness of each effort and your conclusion as to whether each effort was effective. (f) (3) [ ] Ensure that your organization will retain all documents regarding all activities it undertakes for the obligations of this section for three years. ( f) (4) [ ] Internally disseminate the EEO policy in order to gain internal support from supervisory or management personnel and other employees. Keep records of how the information is disseminated. (g) [ ] Design and implement an audit and reporting system to measure the effectiveness of the AAP for individuals with disabilities. Document what reviews have been conducted throughout the year to meet this requirement, and list steps to take if remedial action is needed. (h) [ ] Assign responsibility for implementation of the AAP to an official within the organization. This individual must also receive support and staff to manage the implementation of the program. (i) [ ] Display this person s name on all internal and external communications regarding the company s AAP. (i) [ ] Train all employees who are involved in recruitment, screening, selection, promotion, disciplinary and related processes to ensure that the commitments in your organization s AAP are implemented. Keep records of who conducted the training, a copy of the training handouts and/or presentation materials and a log of attendees. (j) [ ] Collect the following information on applicants and maintain it for a period of three years. (k) o The number of applicants who self-identified as individuals with disabilities pursuant to 60-741.42(a) or who are otherwise known to be individuals with disabilities o The total number of job openings and total number of jobs filled o The total number of applicants for all jobs o The number of applicants with disabilities hired Job openings: individual positions advertised as open in a job vacancy announcement or requisition Jobs filled: all jobs the company filled by any means, be it through a competitive process or non-competitive, such as through reassignment or merit promotion Applicants hired: applicants (both internal and external) who are hired through a competitive process, including promotions o The total number of applicants hired Regulatory Requirements for Federal Contractors and Subcontractors 4
60-741.45 Utilization goals [ ] For each affirmative action plan, annually compare the incumbency by job group of individuals with disabilities against the OFCCP s established 7 percent utilization goal. If your organization has less than 100 employees, the analysis may be done by establishment as a whole rather than by job group. (3) [ ] If the percentage of individuals with disabilities in one or more job groups (or in the entire workforce, if applicable) is less than the utilization goal of 7 percent, you must take steps to determine whether and where impediments to equal employment opportunity exist. (e) [ ] Develop and execute action-oriented programs designed to correct any identified problems areas. (f) When making this determination, you must assess your organization s personnel processes, the effectiveness of its outreach and recruitment efforts, the results of its affirmative action program audit and any other areas that might affect the success of the affirmative action program. This checklist summarizes the major changes to the VEVRAA, effective March 24, 2014, that require contractor action. It is not all-inclusive of regulations for protected veterans. Subpart A Obligations under Subpart A, which became legally effective March 24, 2014, apply to contractors with a federal contract worth $100,000 or more. 60-300.2 Definitions [ ] Update any references to types of veterans covered under the program: o There should no longer be references to Vietnam Era Veterans or Special Disabled Veterans, as 41 CFR 60-250 was rescinded. o Replace covered veteran with protected veteran. This refers to any veteran under the VEVRAA regulations. o Replace other protected veteran with active duty campaign badge veteran. o Use pre-jva veteran to describe the groups of veterans previously protected under rescinded Part 60-250. Regulatory Requirements for Federal Contractors and Subcontractors 5
o The new protected veteran categories consist of disabled veteran, active duty wartime or campaign badge veteran, recently separated veteran and Armed Forces service medal veteran. 60-300.5 Equal opportunity clause [ ] Include an EEO clause in every subcontract or purchase order worth $10,000 or more. Refer to this section of the regulations for the verbiage you must use. (a) (11) and (d) [ ] List employment openings with the state workforce agency job bank or with the local employment service delivery system (ESDS) where the position is located. Provide information about the job vacancy in any manner and format permitted by the appropriate ESDS that will allow the system to provide priority referral of veterans protected by VEVRAA for that job vacancy. (2) [ ] Inform the ESDS in each state where your organization has establishments that your organization: (4) o Is a federal contractor, so that the systems are able to identify them as such o Desires priority referrals from the state of protected veterans for job openings at all locations within the state [ ] Provide each ESDS with the name and location of each hiring location within the state and the contact information for the contractor official responsible for hiring at each location. If your organization uses any external job search organization to assist with hiring, also provide contact information for the job search organization(s). (4) The contractor official may be a chief hiring official, a human resources contact, a senior management contact or any other manager for your organization that can verify the information in the job listing and receive priority referrals. [ ] Ensure that remote employees and online applicants are informed of the EEO clause. (9) [ ] For any location that has a collective bargaining agreement, notify each labor organization or representative of workers that your organization is bound by the terms of VEVRAA, is committed to take affirmative action to employ and advance in employment and shall not discriminate against protected veterans. (10) [ ] In all solicitations or advertisements for employees placed by or on behalf of your organization, state that all qualified applicants will receive consideration for employment without regard to their protected veteran status. (12) Regulatory Requirements for Federal Contractors and Subcontractors 6
Subpart C Contractors should come into compliance with items under Subpart C during their first transitional AAP starting after March 24, 2014. If a contractor cannot come into compliance by the start of their transitional AAP, the contractor must be prepared to show steps it has put in place to come into compliance. 60-300.42 Invitation to self-identify [ ] Extend an invitation to self-identify to applicants (pre-offer) and hires (post-offer). The pre-offer and post-offer invitations require different forms. The OFCCP provides sample verbiage in Appendix B to Part 60-300 (Sample Invitation to Self-Identify). 60-300.44 Required contents of affirmative action programs [ ] On the EEO policy statement, indicate the chief executive officer s support for the affirmative action program. The OFCCP does not require that the policy statement be signed by this individual but does strongly encourage a signature. (a) [ ] Post the most current policy in a conspicuous place, such as a company bulletin board. (a) [ ] Periodically review personnel processes and make any necessary modifications to ensure that these obligations are carried out. In any affirmative action programs required under this part, include a description of the review and any necessary modifications to personnel processes or development of new processes. (b) [ ] Maintain and document a schedule for the review of all physical and mental job qualification standards to ensure that qualification standards do not tend to screen out qualified disabled veterans, that they are job-related for the position and that they are consistent with business necessity. (c) Examples of a schedule include reviewing the qualifications annually or reviewing prior to posting a requisition. [ ] Ensure that if a qualified disabled veteran is having performance issues and you can reasonably conclude that the performance problem is directly related to the disability, your organization will confidentially notify the employee of the performance problem and inquire whether the problem is related to the employee s disability, and if it is, ask if a reasonable accommodation is needed. (d) (1) Refer to Appendix A to Part 60-300 (Guidelines on a Contractor s Duty to Provide Reasonable Accommodation) for more information. [ ] Develop and implement procedures to ensure that your employees are not harassed on the basis of protected veteran status. (e) Regulatory Requirements for Federal Contractors and Subcontractors 7
[ ] Perform effective outreach to recruit protected veterans. Keep records of contacts made with outreach and recruitment sources, as well as the contact information of all outreach and recruitment sources. (f) [ ] Send written notification of your company policy related to its affirmative action efforts to all subcontractors, including subcontracting vendors and suppliers, requesting appropriate action on their part. This notification must be sent out annually to subcontractors and vendors with contracts over $100,000. Keep proof that the notification was sent out. (f) (1) (ii) This section of the regulations provides several examples of effective outreach. Examples of proof include a copy of a sent email or a written response from a subcontractor regarding compliance. [ ] Annually review the effectiveness of the outreach and recruitment efforts taken over the previous 12 months. Document each evaluation, including, at a minimum, the criteria you used to evaluate the effectiveness of each effort and your conclusion as to whether each effort was effective. (f) (3) [ ] Ensure that your organization will retain all documents regarding all activities it undertakes for the obligations of this section for three years. (f) (4) [ ] Internally disseminate the EEO policy in order to gain internal support from supervisory or management personnel and other employees. Keep records of how the information is disseminated. (g) [ ] Design and implement an audit and reporting system to measure the effectiveness of the AAP for protected veterans. Document what reviews have been conducted throughout the year to meet this requirement, and list steps to take if remedial action is needed. (h) [ ] Assign responsibility for implementation of the AAP to an official within the organization. This individual must also receive support and staff to manage the implementation of the program. (i) [ ] Display this person s name on all internal and external communications regarding the company s AAP. (i) [ ] Train all employees who are involved in recruitment, screening, selection, promotion, disciplinary and related processes to ensure that the commitments in your organization s AAP are implemented. Keep records of who conducted the training, a copy of the training handouts and/or presentation materials and a log of attendees. (j) [ ] Collect the following information on applicants and maintain it for a period of three years. (k) Regulatory Requirements for Federal Contractors and Subcontractors 8
o The number of applicants who self-identified as protected veterans pursuant to 60-300.42(a) or who are otherwise known as protected veterans o The total number of job openings and total number of jobs filled o The total number of applicants for all jobs o The number of protected veteran applicants hired o The total number of applicants hired Job openings: individual positions advertised as open in a job vacancy announcement or requisition Jobs filled: all jobs the company filled by any means, be it through a competitive process or non-competitive, such as through reassignment or merit promotion Applicants hired: applicants (both internal and external) who are hired through a competitive process, including promotions 60-300.45 Benchmarks for hiring [ ] On an annual basis, set a hiring benchmark for the entire workforce or by job group, per the AAP. Use one of the two procedures described below: (b) o Establish a benchmark equaling the national percentage of veterans in the civilian labor force, which will be published and updated annually on the OFCCP website (currently 7.2 percent). o Establish a benchmark by taking into account factors described in this section of the regulations. [ ] Document the hiring benchmark(s) your organization has established each year. If you set a benchmark using the second procedure listed above, you must document each of the factors that you considered in establishing the hiring benchmark and the relative significance of each of these factors. Retain these records for a period of three years. (c) How Peoplefluent Can Help Complex regulatory changes and an increase in OFCCP audit frequency and intensity has managers of affirmative action programs seeking assistance to ensure compliant HR practices. Many organizations extend their AAP team with consulting or outsourcing services to alleviate strain on internal resources. PeopleFluent s affirmative action planning, analysis and support model simplifies the process and provides you with a full range of services and technology. Whether you choose to manage affirmative action plans internally or outsource plan preparation and program support to AAP Regulatory Requirements for Federal Contractors and Subcontractors 9
experts, you deserve a comprehensive solution focused on the effectiveness of your entire program and backed by a 100-percent guarantee of technical compliance. PeopleFluent empowers companies to leverage the affirmative action plan as a strategic asset that drives equal employment practices and compliance at every stage of the talent management lifecycle. To learn more about how our team of AAP experts can benefit your business, request a compliance assessment at eeosales@peoplefluent.com. DISCLAIMER: The information provided is for educational and informational purposes only. It does not constitute legal advice or legal opinions. PeopleFluent makes no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained herein. Nothing that is provided in this presentation should be used as a substitute for the advice of legal counsel. Regulatory Requirements for Federal Contractors and Subcontractors 10
About PeopleFluent PeopleFluent, the leading total workforce HCM technology company, redefines Talent Management with an innovative Talent Engagement Cloud that is built around people and not HR processes. By deeply integrating pervasive video, strategic analytics and collaborative social technologies into its complete suite of Talent Management applications, PeopleFluent redefines employee engagement to address productivity loss and diminished financial results due to an increasingly disengaged workforce. With PeopleFluent, companies can change at the speed of business without costly IT interventions through intuitive, highly configurable software that is built upon the right data. Spanning across an organization s entire global workforce with one talent cloud, PeopleFluent equips leaders with the meaningful talent data and strategic analytics necessary to make better business decisions. PeopleFluent has worked with over 5,100 organizations in 214 countries and territories to engage employees to drive better business results. Today, 80% of the Fortune 100 relies on PeopleFluent as part of their talent management delivery strategy, helping them successfully achieve their talent aspirations. Irving, Texas 400 East Las Colinas Blvd., Suite 500 Irving, TX 75039 USA Toll-free: (888) 674-2427 Tel: +1-214-574-5020 Waltham, Massachusetts 300 Fifth Avenue Waltham, MA 02451 USA Tel: +1-781-530-2000 Raleigh, North Carolina 434 Fayetteville Street, 9th Floor Raleigh, NC 27601 USA Toll-Free: (877) 820-4400 Tel: +1-919-645-2800 London, United Kingdom 15 Fetter Lane London EC4A 1BW United Kingdom Tel: +44 (0) 20 7832 3440 www.peoplefluent.com Copyright 2014, PeopleFluent. All rights reserved. This document contains registered trademarks and trademarks of PeopleFluent Holdings Corp. or one of its subsidiaries. All other brand and product names are trademarks or registered trademarks of their respective holders.