As you know, federal contractors and sub-contractors must include all employees within the contractor’s workforce in an Affirmative Action Plan. However, this does not mean that a contractor must have a separate Affirmative Action Plan for each of it’s establishments with 50 employees or more. For larger companies with multiple locations it might be to the contractors advantage to enter into an agreement with the Office of Federal Contractor Compliance Programs (OFCCP) do develop Functional Affirmative Action Plans (FAAP). In some cases, it may be appropriate for a contractor to use both Functional and establishment-based Affirmative Action Plans. For example, a contractor has multi-establishments that are located in Seattle, Denver, and Washington, DC, each of these establishments includes a Marketing unit, and Research functions. The Functional Affirmative Action Plan agreement might permit the contractor to develop and implement two functional AAPs: one for Marketing and one for Research. The remaining employees would be covered in separate establishment-based Affirmative Action Plan. How the OFCCP selects functional or business units for evaluation The OFCCP uses administratively neutral selection criteria when selecting a company for an audit. However, a contractor may also be scheduled for a compliance evaluation for one of the following reasons: A complaint suggests equal employment opportunity issues that warrant a compliance evaluation; An EEOC or state fair employment practices agency investigation reveals significant equal employment opportunity issues; The OFCCP Director, acting upon a credible report of a violation of a law enforced by OFCCP, determines that a compliance evaluation is warranted; or The contractor fails to submit the annual update of its Functional Affirmative Action Program Agreement specified in the Functional AAP Directive. Where will scheduling letters come from? OFCCP will use the audit scheduling letter that has been approved by OMB for scheduling compliance evaluations. The letter comes from the FAAP Unit located in OFCCP’s national office in the Division of Program Operations in Washington, DC, and is responsible for sending scheduling letters and conducting the compliance evaluations of functional or business units. Contractors will submit their Functional Affirmative Action Plan and support data to this office within thirty days of receipt of the scheduling letter. The letter comes from the FAAP Unit located in OFCCP’s national office in the Division of Program Operations in Washington, DC, and is responsible for sending scheduling letters and conducting the compliance evaluations of functional or business units. Contractors will submit their Functional Affirmative Action Plan and support data to this office within thirty days of receipt of the scheduling letter. The letter comes from the FAAP Unit located in OFCCP’s national office in the Division of Program Operations in Washington, DC, and is responsible for sending scheduling letters and conducting the compliance evaluations of functional or business units. Contractors will submit their Functional Affirmative Action Plan and support data to this office within thirty days of receipt of the scheduling letter.
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