Established in 1965, the Office of Federal Contract Compliance Programs (OFCCP) is a civil rights agency within the United States Department of Labor. OFCCP maintains a headquarters in Washington, DC, and several regional offices across the country. The headquarters office sets and coordinates the agency’s enforcement priorities, compliance evaluation scheduling process, compliance assistance activities, staff and contractor education, contractor outreach and engagement, worker and community outreach, and performance data collection and reporting. The agency’s regional offices oversee, conduct, and coordinate compliance evaluations and complaint investigations, and local and regional stakeholder engagement.
OFCCP protects the employment rights of job applicants and employees of companies that are federal contractors. Federal contractors are covered by the three laws that OFCCP enforces if they hold a qualifying federal contract or subcontract that meets certain threshold requirements.
Depending on the number of employees at each location, facility, or establishment and the dollar amount of the contract, some federal contractors are required to develop a written AAP. If a contractor is required to have an AAP, it must develop it within 120 days from the start of the contract and must update it annually. Having and implementing the required AAP is the foundation upon which employers base their compliance.
An AAP is a management plan for ensuring that covered federal contractors are providing applicants and employees with equal employment opportunities. An AAP documents the organizational structure, demographic composition of the workforce, and policies, practices, and procedures that the company will use to make sure that qualified applicants and employees are receiving an equal opportunity to apply and compete for jobs, promotions, training, and other employment opportunities.
Contractors with 50 or more employees that meet the respective thresholds set for the dollar amount of the contract are required to develop written AAPs. The dollar thresholds are $50,000 or more under EO 11246 and Section 503, and $150,000 or more under VEVRAA. Multi-establishment companies must have an individual AAP for each location, facility, or establishment that has 50 or more employees.
OFCCP laws include thresholds for determining which contractors must have AAPs. Each law and the applicable AAP threshold are explained below.
What are some of the other affirmative action compliance responsibilities of federal contractors? The specific obligations vary somewhat under the three laws; however, contractors should be aware of all of the requirements. Below is a list of important compliance requirements.
The Contractor Portal is a new OFCCP platform where covered federal contractors and subcontractors (“contractors”) must certify whether they are meeting their requirement to develop and maintain annual AAPs. Scheduled contractors will also be able to use the portal to upload their AAP(s) during a compliance evaluation