Affirmative Action Plan (AAP)

What Is an Affirmative Action Plan (AAP)?

An Affirmative Action Plan (AAP) is a structured program detailing a federal contractor or subcontractor’s commitment to ensuring equal employment opportunities and fostering employee advancement, irrespective of gender, race, disability, or veteran status.

Affirmative Action Plan Requirements: Unveiling Compliance Standards

Formal affirmative action plans are mandatory solely for federal contractors and subcontractors. The Office of Federal Contracts Compliance Programs (OFCCP) governs these requirements and mandates AAPs for non-construction federal contractors or subcontractors that meet the following criteria:

• Employ 50 or more individuals

• Are within 120 days from the commencement of a federal contract

• Hold a federal contract or subcontract valued at least $50,000

• Possess government bills of lading totaling at least $50,000 in any 12 months

• Serve as a depository of federal funds in any amount

• Function as a financial institution serving as an issuing and paying agent for U.S. savings bonds and savings notes

Verification of meeting these conditions should be confirmed with the OFCCP.

Affirmative Action Compliance: Monitoring and Annual Updates

OFCCP oversees AAPs at the federal level, requiring annual updates through its online contractor portal. Organizations can register multiple users on the portal for record management. Failure to annually certify AAPs increases the likelihood of OFCCP audits.

Some states impose additional AAP compliance requirements. For precise details, consult your state’s Department of Labor or Employment.

Building Evidence: Documentation for Affirmative Action Efforts

In addition to maintaining a current, written AAP, OFCCP recommends documenting affirmative action efforts. This includes retaining records such as:

1. Documents outlining employment policies and practices, including collective bargaining agreements
2. Correspondence to suppliers, vendors, and recruiters, articulating affirmative action policies
3. Contracts containing equal employment clauses

AAP Reporting: Utilizing Internal Audits for Transparency

OFCCP advises contractors to employ internal audits and reporting systems for tracking relevant employee demographic information. This proactive approach aids in monitoring anti-discrimination initiatives and evaluating the effectiveness of the affirmative action plan.

Information to collect encompasses:

1. Applicant and employee demographics voluntarily gathered during the hiring process with an applicant flow log
2. Data on promotions, transfers, and terminations
3. Compensation-related information

It is essential to clarify that while an AAP is the documented plan and policies guiding the company for the next year, the audit and reporting system utilized by the company rely on the results and data collected from both.