Requesting a Functional Affirmative Action Plan Agreement from OFCCP

Effective June 14, 2011, the Office of Federal Contractor Compliance Programs (OFCCP) has issued a new Functional Affirmative Action Plan directive. A contractor requesting a functional affirmative action plan agreement initially must submit a written request to OFCCP demonstrating why a FAAP would be appropriate. The contractor must be prepared to demonstrate that the functional or business unit

1) Currently exists and operates autonomously

2) Includes at least 50 employees,

3) Has its own managing official

4) Has the ability to track and maintain its own personnel activity.

The directive mandates that certain information concerning the request must be provided to the Agency prior to a conference. This information includes organizational profile/workforce analysis, total number of employees by race and gender within each functional or business unit, and copies of personnel policies.

All Functional Affirmative Action Plan requests must be received by the OFCCP Director no later than 120 calendar days prior to the expiration of the current corporate headquarters Affirmative Action Plan or within 120 days from the award of a covered federal contract for a first time contractor.
OFCCP Consideration of FAAP Requests

OFCCP will consider whether a contractor is currently reporting its compliance under a conciliation agreement in determining whether to grant the Functional Affirmative Action Plan request. OFCCP also will consider any local, state, and federal equal employment opportunity (EEO) violations for the past three years. Once approved, FAAP agreements will expire three years following the approval date.

Contractors with existing Functional Affirmative Action Plan agreements that experience significant corporate structure changes must notify OFCCP’s Director within 30 days of the changes. Failure to do so may lead to termination of the agreement. Under the new directive, existing FAAP contractors must annually (within 30 days from the anniversary date of the agreement) notify the OFCCP of any minor changes to the agreement, such as contact information. Failure to do so could trigger a compliance review.

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