Monday, August 27, 2018

Why An OFCCP AAP Must Be Complied

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.

All federal contractors and subcontractors with fifty employees or more are required to create an AAP. They must also have a contract worth fifty thousand dollars or more. Those serving as depositories of government funds and financial institutions functioning as issuing and paying agents for savings bonds and savings notes are required to create an 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 even after the set amount of time has been given and the company still fails to comply with the rules and regulations, it can end up losing its government contract. Victims of discrimination will be compensated and the company will be banned from contracting with any government agency in the future. Moreover, they will also be liable to pay a huge sum worth of penalties and fees that will likely end up incapacitating the business.

Comprehensive documentation of files and reports is crucial in case of an abrupt evaluation. Outreach efforts must be planned by contractors to attract qualified candidates that are PWDs and protected veterans. Employers must attain a benchmark of 7% for PWDs and 6.9% for protected veterans. Affiliating with organizations for veterans and PWDs can help them achieve this benchmark.

These outreach programs are also expected to produce results. Figures for job openings, candidates for all positions, veteran applicants, veterans hired, and overall applicants hired are included in the process of documentation because these will eventually be evaluated by the agency. Three years is the recommended span of time that these records must be maintained.

AAPs should be built based on the size of the company and all the employees in its workforce. The organizational structure, practices, programs, and policies must be reflected in the AAP. Documents indicating these policies and practices and materials used in affirmative action programs will be used to serve as evidence of efforts to adhere to the regulations.

Federal contractors have to comply with a litany of regulations just to guarantee that everyone gets equal opportunities. Estimates show that larger companies spend roughly four hundred hours on annually updating and maintaining their AAPs. Additionally, they also spend around fifteen thousand dollars on hours spent by management and administrative departments keeping track of their affirmative action programs.

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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