Pay equity, diversity and inclusion
OFCCP Issues Revised FAAP Directive
The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) has released a revision to Directive 2013-01 to establish policies and procedures for requesting and maintaining Functional Affirmative Action Programs (FAAPs).
FAAPs were introduced by OFCCP to provide contractors the ability to develop Affirmative Action Programs for a business unit as an alternative to establishing Affirmative Action Programs (AAPs) for an individual establishment, such as a factory, office or store. OFCCP is encouraging the use of FAAPs based on the agency’s belief that “a company with a FAAP may find that it easier to organize and analyze data, identify issues, establish clear lines of responsibility for implementing its AAP, and monitor progress.” The OFCCP provides contractors the flexibility to combine the use of FAAPs and establishment-based AAPs in the way that makes the most sense for their operations.
According to OFCCP, to be suitable for a FAAP, “the functional or business unit must exist and operate independently (e.g., managing official has ultimate responsibility for the decisions made within a functional or business unit), have at least 50 employees, have its own managing official, and have the ability to track and maintain its own personnel activity.”
The changes to the FAAP directive includes the following:
- The OFCCP will no longer consider compliance history when reviewing a quest for a new FAAP agreement or termination.
- The agreement term is extended from current three years to five years.
- There will be a minimum of three years between compliance evaluations for a single functional unit. This is 12 months longer than an establishment review.
- Complete FAAP applications will be determined with 60 days. Historically, there was no deadline.
- OFCCP no longer requires that FAAP contractors undergo at least one compliance evaluation during the term of their FAAP agreement.
Contractors requesting FAAP agreements must submit their written request to the Director of OFCCP no later than 120 days prior to the expiration of their current AAP. In the event a contractor’s request is denied, contractors are not prohibited from requesting FAAP for future years.
Contractors can read the full revised directive by clicking here.
The OFCCP enforces EO 11246, Section 503 and VEVRAA, which prohibit contractors and subcontractors from discriminating on the basis of race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or status as a protected veteran. In addition, these laws require federal contractors to take steps to ensure equal employment opportunity in their employment processes.
To learn more about achieving pay equity, click here.