1. AFFIRMATIVE ACTION BASICS JEREMY MANCHESKI JUNE 11, 2014

2. 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…

3. 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

4. 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

5. 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 11246 2.Section 503 of the Rehabilitation Act of 1973* 3. Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA/Section 4212) * * Changes Pending

6. REGULATIONS AND ENFORCEMENT OFCCPs Focus  Veterans Outreach  Disabled Outreach  Adverse Impact in Hiring Process  Compensation Differences  Recordkeeping http://www.dol.gov/ofccp

7. 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

8. 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 https://www.epls.gov/https://www.epls.gov/  Less costly to handle compliance prior to an audit

9. 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

10. 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

11. 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)

12. 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

14. 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)

16. 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)

19. 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)

21. 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

22. 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

23. 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

24. 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)

25. 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…

26. 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

27. 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.

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

30. 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

31. 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

32. QUESTIONS OutSolve, LLC www.outsolve-hr.com (888) 414-2410