Certain employers – including many companies with federal government contracts, financial institutions, and health care facilities – must comply with federal affirmative action requirements regarding the hiring and advancement of disabled people, veterans, women, and minorities if they want to do business with the federal government.

Who Is an Affirmative Action Employer?

Your business will be classified as an “affirmative action employer” if it:

  • Employs 50 or more workers and has won federal contracts with a value of at least $50,000;

  • Acts as a construction contractor or subcontractor, and has won federal or federally-assisted contracts with a value of at least $50,000;

  • Is a financial institution with at least 50 employees; or

  • Is a healthcare organization with 50 or more employees (including hospitals).

Affirmative Action Legislation

Three different laws require certain affirmative action employers to create and maintain affirmative action programs. The following is a sampling of some of the content of these laws:

  • The Rehabilitation Act of 1973 requires contractors with at least 50 employees and at least $50,000 in federal contracts to implement an affirmative action program for disabled people who otherwise qualify for the position.

  • The Jobs for Veterans Act requires federal government contractors with contracts worth at least $150,000 to maintain a written affirmative action program for certain veterans, including veterans with service-connected disabilities.

  • Executive Order 11246 requires federal contractors and subcontractors with at least 50 employees and at least one federal contract worth at least $50,000 to create and execute a written affirmative action program in favor of women and minorities, which must be finalized within 120 days of the initial contract date and which must be updated every year. Any depository of government funds or a financial institution that acts as an agent for U.S. savings bonds and notes must also maintain an affirmative action program.

Legal Obligations

The following points should be noted:

  • To maintain eligibility for federal contracts, an affirmative action employer must formulate a written Affirmative Action Plan in accordance with the Office of Federal Contract Compliance Programs (OFCCP). You must also cooperate with periodic surveys conducted by the government as well as compliance inspections and audits.

  • Keep in mind that, while certain forms of discrimination are illegal, it is not illegal to fail to maintain an affirmative action program, unless your business is ordered to maintain one by a court (a relatively rare occurrence). Maintaining an affirmative action program will simply help you secure and maintain federal government contracts.

  • You don’t need to file affirmative action paperwork with the government. Instead, you should keep it yourself and make it available in the event of an audit.

We Can Help You Establish an Affirmative Action Program

If your business would benefit from compliance with affirmative action obligations, you are going to need to spend some time preparing. Contact CKB Vienna today by calling one of our offices in Rancho Cucamonga, Riverside, and Los Angeles, or by contacting us online to schedule a consultation. We serve clients in Rancho Cucamonga, San Bernardino County, Los Angeles County, Orange County, and Riverside County.