AFFIRMATIVE ACTION BASICS JEREMY MANCHESKI JUNE 11, 2014

OVERVIEW  OutSolve Services  Regulations and Enforcement  Affirmative Action Plan (AAP) Components  Additional Requirements  Your Role in AAP Process  Monitoring Obligations  Audits  What’s to come…

OUTSOLVE SERVICES  Affirmative Action Plan Preparation  “Monitoring Reports”  EEO-1 & VETS100/100A Reports (3 rd Quarter)  Audit Support Comprehensive Submittal Binder Adverse Impact Analyses Progress Toward Goals Compensation Data

OUTSOLVE SERVICES (CONTINUED)  Unlimited Telephone Consulting Support  Outreach Sources  Affirmative Action Solutions Booklet (Client Website)  Webinar Training  On-Site Training  Free Annual Training in New Orleans, LA

REGULATIONS AND ENFORCEMENT OFCCP = Office of Federal Contract Compliance Programs  OFCCP conducts compliance evaluations (i.e., audits) to determine whether a contractor is complying with its obligation to maintain nondiscriminatory employment practices. OFCCP Enforces: 1.Executive Order Section 503 of the Rehabilitation Act of 1973* 3. Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA/Section 4212) * * Changes Pending

REGULATIONS AND ENFORCEMENT OFCCPs Focus  Veterans Outreach  Disabled Outreach  Adverse Impact in Hiring Process  Compensation Differences  Recordkeeping

REGULATIONS AND ENFORCEMENT Who is required to prepare an AAP?  50 employees/$50,000 Federal contracts or subcontracts  Government bills of lading totaling $50,000 or more in 12 months  Depository of government funds  Financial institution issuing or paying U.S. savings bonds or notes

REGULATIONS AND ENFORCEMENT Consequences of Non-Compliance  Bad press OFCCP audit findings are public Findings of alleged discrimination create a poor impression of employers  Lawsuits Costly and burdensome  Debarment from Federal Contracts Debarment is published online  Less costly to handle compliance prior to an audit

AAP COMPONENTS Plan Narrative  Separate written plan for Women/Minorities & Veteran/Disabled  Establishes responsibility for the program Top Official Named EEO Administrator Named  Discusses policies and procedures

AAP COMPONENTS Plan Narrative (continued)  Women/Minority Narrative Internal & External Dissemination of EEO Policy Establishment of Responsibility for Implementation of the Plan Development & Execution of Action-Oriented Programs Internal Audit and Reporting System  Veteran/Disabled Narrative** Identification and Responsibilities of EEO/AA Administrator Internal & External Dissemination of Policy Review of Personnel Processes Physical and Mental Job Qualifications Reasonable Accommodation Harassment Prevention Audit and Reporting System Training to Ensure AAP Implementation ** Current regulations do not require statistical analyses for Veteran/Disabled

AAP COMPONENTS Statistical Analysis The remaining sections of your plan will follow this simple analysis: How You Compare (Utilization Analysis) What You Should Have (Availability) What You Have (Current Employees)

AAP COMPONENTS Workforce Analysis  Depicts departmental structure  Jobs listed from lowest to highest paid  Each Job will give employee counts with breakdown of the Race/Gender  No real “Analysis” being conducted here

AAP COMPONENTS Job Group Analysis  Job Group is defined as jobs within the same EEO classification at an establishment having similar: Content Wage Rates Opportunities What You Have (Current Employees)

AAP COMPONENTS Availability Analysis  Two Factor Analysis 1.External - % available outside the organization within the Reasonable Recruitment Area (RRA) 2.Internal - % available within the organization (promotable/trainable) What You Should Have (Availability)

AAP COMPONENTS Utilization Analysis  Key component & final result of an AAP  Compares employment to availability  Goals are set at availability **Goals DO NOT Equal Quotas** How You Compare (Utilization Analysis)

ADDITIONAL REQUIREMENTS  Applicants should be asked to complete a Voluntary Self-Identification Form  Upon job offer, invite new hire to self-id as individual with a disability or covered veteran  Post external job openings with the State (except Exec/Temp)  Post external job openings with diverse recruiting sources  Audit records that are being maintained  Posters (EEO is Law, EEO Policy Statement, other state specific postings, etc.)  Reference EOE tagline in job postings  Conduct Compensation & Adverse Impact Analysis

ADDITIONAL REQUIREMENTS (CONT.)  Establish a process for reasonable accommodations requests  Ensure accessibility to online application system for individuals with disabilities  Include Equal Opportunity language on Purchase Orders/Sub- Contract reference  Train management/supervisory personnel and recruiters about EEO/AA goals and obligations  Create relationships with local and community action programs

YOUR ROLE IN AAP PROCESS  Preparation and Dissemination Working with OutSolve to develop structure Communicating plans with stakeholders  Rest of HR plays a major role Ensuring accuracy of employment data Ensuring records are being maintained Addressing Underutilization and Adverse Impact Conducting Good Faith Outreach Training managers on AAP responsibilities

MONITORING REPORTS  Required components of an AAP  An annual review of selections Adverse Impact Analysis Progress Toward Goals Report  Provided to OFCCP during Compliance Reviews (Audits)

ADVERSE IMPACT ANALYSIS What is Adverse Impact?  A substantially different rate of selection in employment  Employment decisions that adversely affects a protected group  Prima facie evidence of discrimination  Includes almost any employment decision  Analyze selections made during the year Hires vs. Applicants** Promotions Terminations  Adverse Results Research selections with impact Document findings and resolutions ** Applicant Definition defined…

APPLICANT DEFINITION Candidate must meet the following criteria to be considered an “Applicant”: 1.Expression of Interest, 2.Contractor considers, 3.Meets the Minimum Qualifications, and 4.Continued Interest

Adverse Impact Analysis Sample Adverse Impact Observations Job Group 5C has the same number of applicants as hires – this is a red flag during an audit. Job Group 7A has 45 hires but zero applicants – this is a red flag during an audit. Job Group 7B has adverse impact against minorities – this a red flag during an audit.

PROGRESS TOWARD GOALS REPORT  Job representation in prior year’s AAP  Opportunities = Hires + Promotions  Job representation in current AAP  Goal attained?  Refocus Outreach efforts

AUDITS  Random Draw?  Corporate Scheduling Announcement Letter (CSAL)  Official “Scheduling Letter” – Desk Audit 11 items requested (currently) 30 days to respond Follow up questions Possible onsite visit  Closure Letter/Conciliation Agreement

AUDITS (CONTINUED)  Audits have been on the rise the past few years …. Expect more!  The New OFCCP Bigger budget More Compliance Officers More enforcement Granular in scope

QUESTIONS OutSolve, LLC (888)