Affirmative Action Plans, or AAPs, are required for certain employers under 3 different pieces of legislation for federal contractors and subcontractors: Executive Order 11246, the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA), and Section 503 of the Rehabilitation Act. To break it down simply, if you contract (or subcontract) with the federal government, have at least 50 employees, and have at least $50,000 in relevant contracts, then the AAP requirements apply to your company. However, knowing that the requirement applies to your company is only part of the equation. Another, perhaps more important, part of the equation is understanding the basic elements that comprise a compliant AAP.
A compliant AAP is based on including 3 basic elements, which all work together for the same outcome, ensuring fair and equitable outcomes for all.
- Reasonable Self-Analysis
- Refers to ensuring a regular, structured, and documented process to inspect personnel practices, such as: hiring processes, promotions, compensation, and dismissals.
- The purpose is to identify any potential adverse impact on protected classes.
- Reasonable Basis
- Refers to the findings of the self-analysis.
- If the analysis identifies that personnel practices do have the effect of adverse impact on a protected group, whether intentional or not, or has not corrected adverse disparities from previous practices, then there is a reasonable basis.
- Reasonable Action
- Refers to a plan of action to be taken if a reasonable basis is discovered during the self-analysis. It should include goals, timetables, and the tools or resources to be used to correct the issues found.
- Action plans may include recruitment process changes, increased checks and balances on promotion processes, training programs, outreach efforts, or structured salary ranges and processes.
Understanding the basic elements of an AAP is essential to remaining in compliance with the OFCCP if your company contracts with the federal government, particularly with the new AAP certification requirements of the OFCCP’s Contractor Portal. While it can be challenging to know where to start with conducting and documenting a self-analysis, let alone what indicates a reasonable basis or what action plans should be in place if there are discrepancies, there are resources to help you stay in compliance. If you need help getting started with any of the elements of your AAP, reach out to us at Rocket City HR Consulting.
