Federal contractors and subcontractors are required to have an Affirmative Action Plan (AAP) if they meet specific conditions set forth by the Office of Federal Contract Compliance Programs (OFCCP). These conditions include:
Key Facts
- Federal Contractors: Affirmative Action Plans are required for federal contractors and subcontractors who meet the following conditions:
- Have 50 or more employees.
- Are within 120 days from the start of a federal contract.
- Have a federal contract or subcontract of at least $50,000.
- Have government bills of lading totaling at least $50,000 in any 12 months.
- Serve as a depository of federal funds in any amount.
- Are a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes.
- Self-Identification: Employers must give deference to an individual’s self-identification of race, gender, or ethnicity and should not question or override it based on visual observation.
- Gender X: Contractors are encouraged to invite all applicants and employees to voluntarily self-identify their gender. If an employee or applicant chooses to self-identify as non-binary or as a gender other than male or female, the contractor must still include the individual in its AAP submission.
- Obtaining Demographic Information: Contractors should rely on employee self-identification to obtain gender, race, and ethnicity information. Visual observation is an acceptable method, but contractors should not guess or assume an individual’s demographic information.
- Having 50 or more employees.
- Being within 120 days from the start of a federal contract.
- Having a federal contract or subcontract of at least $50,000.
- Having government bills of lading totaling at least $50,000 in any 12 months.
- Serving as a depository of federal funds in any amount.
- Being a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes.
It is crucial for contractors to note that they must give deference to an individual’s self-identification of race, gender, or ethnicity. Employers should not question or override an individual’s self-identification based on visual observation.
Contractors are encouraged to invite all applicants and employees to voluntarily self-identify their gender. If an employee or applicant chooses to self-identify as non-binary or as a gender other than male or female, the contractor must still include the individual in its AAP submission. However, the contractor may exclude that individual’s data from the gender-based analyses required by OFCCP’s regulations.
Contractors should rely on employee self-identification to obtain gender, race, and ethnicity information. Visual observation is an acceptable method, but contractors should not guess or assume an individual’s demographic information.
Sources
- Federal contractor affirmative action and related requirements – Employer.gov
- Affirmative Action Plan (AAP) | BambooHR
- General Affirmative Action Programs Frequently Asked Questions | U.S. Department of Labor
FAQs
Who is required to have an Affirmative Action Plan (AAP)?
Federal contractors and subcontractors are required to have an AAP if they meet specific conditions set forth by the Office of Federal Contract Compliance Programs (OFCCP).
What are the conditions that require a federal contractor or subcontractor to have an AAP?
The conditions include having 50 or more employees, being within 120 days from the start of a federal contract, having a federal contract or subcontract of at least $50,000, having government bills of lading totaling at least $50,000 in any 12 months, serving as a depository of federal funds in any amount, or being a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes.
What should contractors do if they meet the conditions that require an AAP?
Contractors who meet the conditions should develop and maintain a written AAP for each of their establishments within 120 days from the start of the federal contract.
What are some of the key requirements of an AAP?
AAPs must include a detailed description of the contractor’s equal employment opportunity policies and procedures, as well as specific goals and timetables for achieving equal employment opportunity. Contractors must also conduct an annual review of their AAPs and update them as necessary.
What are the consequences for contractors who fail to have an AAP or who have a deficient AAP?
Contractors who fail to have an AAP or who have a deficient AAP may be subject to sanctions, including being barred from receiving future government contracts.
Are there any resources available to help contractors develop and maintain their AAPs?
Yes, the OFCCP offers a variety of resources to help contractors develop and maintain their AAPs, including a sample AAP, technical assistance guides, and online training.
How can contractors ensure that their AAPs are effective?
Contractors can ensure that their AAPs are effective by regularly reviewing and updating them, setting realistic goals and timetables, and involving employees in the development and implementation of the AAP.
What are the benefits of having an effective AAP?
An effective AAP can help contractors to attract and retain a diverse workforce, improve employee morale and productivity, and reduce the risk of discrimination lawsuits.