Affirmative Action Common Questions

AFFIRMATIVE ACTION PLANNING: The Ongoing Common Questions!!

First Things First!!

Do I have to have an Affirmative Action Plan?

Over the years, it’s been amazing how many employers do not qualify as Federal Contractors, as well as those that do qualify, and do not realize it.

The Executive Order 11246 states:

“Each non-construction contractor/subcontractor with 50 or more employees is required to develop a written Affirmative Action Program (AAP) for each of its establishments within 120 days from the start of the Federal contract, if it:

· Has a Federal contract or subcontract of $50,000 or more;
· Has government bills of lading which in any 12-month period total, or can reasonably be expected to total, $50,000 or more;
· Serves as a depository of Federal funds in any amount; or
· Is a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes in any amount.

Not all of our locations do government work. Do they need to be covered?

Definitely a repeat question! One of the most misunderstood pieces of the regulations is that a contractor that meets the requirements must develop an Affirmative Action Plan for “each of its establishments”. Be careful. This does not mean that each location has to have 50 employees or the $50,000 in Federal Contracts. If the “parent” company meets the requirements then every employee must be covered in an Affirmative Action Plan. It is possible, however, that you have a related business or organization that may not qualify as a “single entity” and stand alone and apart from the Affirmative Action Requirements. The O.F.C.C.P. (Office of Federal Contract Compliance Programs) uses a “single entity” test to determine if the businesses or organizations are this closely related or not. The considerations include whether:

1. The entities have common ownership;
2. The entities have common directors and/or officers;
3. One entity has de facto day-to-day control over the other through policies, management or supervision of the entity’s operations;
4. The personnel policies of the entities emanate from a common or centralized source; and
5. The operations of the entities are dependent on each other.

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