Monday, August 6, 2018

Why Contractors Need To Build An OFCCP AAP

By Scott Martin


Affirmative Action Plans are required by the Office of Federal Contract Compliance Programs to contractors and subcontractors under the federal government. An OFCCP AAP must be passed around 120 days prior to an employer being given a federal contract. It helps to ensure that PWDs, veterans, women, and minorities are given equal employment opportunities that the entire workforce of a specific employer also gets to enjoy.

Federal contractors with about fifty people working for them are already authorized to submit an AAP. Qualifiers must also hold a fifty thousand dollar contract. Depositories of funds and paying and issuing representatives for savings notes or savings bonds in the form of financial institutions are authorized to build this action plan.

Those who comply with the criteria mentioned above must also recruit and hire, as well as, track and analyze employment data and compensation through a method prescribed by the OFCCP. The OFCCP conducts random selection for audits of employers required to maintain AAPs. If violations are found during the evaluation, the OFCCP tries to make a resolution by giving the company a certain amount of time to correct its misconduct.

If the company still fails to comply even after this second chance, sanctions will be administered. Not only will they lose their government contract but the company will also be prohibited from doing any more businesses with government agencies. The victims will be compensated fairly. Additionally, the company might end up crippled after the lump sum of penalties and fees that it is liable to settle.

Thorough documentation of reports and files is important in the case of an unexpected audit. Contractors must plan outreach efforts to attract qualified applicants that are protected veterans and PWDs. By affiliating themselves with veteran and disabled organizations, employers must obtain the required benchmark of 6.9% for veterans and 7% for PWDs.

Results are also expected of these outreach programs. The number of openings and jobs occupied, number of candidates for all jobs, number of veteran applicants, number of veterans hired, as well as, the sum of all applicants hired must be included and regularly updated in the documentation process. These records need to be maintained for at least three years.

The size of the company and the workforce must be taken into consideration when building an AAP. Organizational structures, policies, programs, and practices must be shown in the action plan. Different records and documents listed as part of the affirmative action programs are observed as evidence of outreach efforts.

Federal contractors need to follow a long list of regulations in order to guarantee equal opportunities for everyone. Figures show that approximately four hundred hours is spent annually by large companies on regularly maintaining and updating their AAPs. The hours spent by administrative and management departments on tracking affirmative action programs accumulate to a grand total worth fifteen thousand dollars in resources.

To help expedite this entire process, the OFCCP offers information, seminars, and training programs to advise companies on the important list of things to know about complying with all their regulations. Of course, companies may also hire the services of management and legal teams to help them with their outreach programs and OFCCP compliance. Despite all the costs and labor that goes into efforts of reducing discrimination in the workforce, employers must genuinely reach out to these minorities to give them a chance at a better life through employment.




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