September 30, 2010 Presented by: Tony Pickell President/CEO 6215 Meridian Street West Drive Indianapolis, Indiana Created Exclusively for ExactHire:

Are you a federal contractor? Supply and Service as well as Construction Contractors and Subcontractors have applicant tracking obligations mandated by 41 CFR Parts 60-1 through 60-50, as well as other obligations beginning with contract values of as little as $10,000 Contracts need not be first tier and can be a subcontractor at any tier as long as the good or service is necessary to fulfillment of the prime contract

Applicant Analysis Obligations Supply and Service contractors with more than 50 employees must annually prepare written affirmative action programs, which include, among other things, analysis of applicant pool and hires by race and gender Analysis of applicant pool data and hires required for construction contractors with 100 or more employees

Consequences of Non- Compliance Absent or poor data for applicants is #1 basis for Department of Labor violations and conciliation agreements Statistically significant disparities in hiring rates for minorities and women can be an inference of discrimination absent documentation to defend employment decisions Findings of discrimination may result in monetary penalties for back-pay and interest (over $60M in DOL penalties last year)

Consequences of Bad Applicant Data Exposure to inaccurate claims of discrimination Time and resources to correct the data, if possible Inability to defend oneself – Explain disparities in selection rates – Isolate problem areas – Limit liability

Using ExactHire To Its Fullest Turn on the job status feature to have requisition specific status Use detailed disposition codes identifying stage removed from selection process and reason for non-selection

Using ExactHire To Its Fullest Regulations require federal contractors to solicit race and gender of all applicants Be sure to turn on the race and gender self-identification feature to ensure all applicants are given this opportunity

Caution When Requesting Veteran and Disability Status Regulations also require federal contractors to solicit veteran and disability status as part of its selection process While veteran and disability status may be obtained prior to an offer of employment, it is preferred to postpone requesting veteran and disability status until post offer to avoid questions regarding reasonable accommodation, which would violate the ADA

Mandatory Referral Sources In addition to posting jobs with diverse referral sources targeting qualified minority, women, veteran and disabled applicants, most openings must be posted with the appropriate local employment service office of the state in which the opening occurs The following openings are exempt from this requirement: – Openings for Officials & Managers within the Company – Openings that will be filled from within the Company – Temporary positions lasting less than three days

Evaluating Referral Sources Keep referral sources current with ExactHire and at least annually evaluate their effectiveness with the Ad Source Report Change or update referral sources not generating qualified applicants for your organization

For answers to additional compliance questions for federal contractors related to applicant tracking, affirmative action programs or Department of Labor audits contact: Tony Pickell President/CEO Precision Planning 6215 Meridian Street West Drive Indianapolis, Indiana