OFCCP Suspends Permission for Contractors to Establish, Modify Functional Affirmative Action Plans

The Office of Federal Contract Compliance Programs (OFCCP) has suspended approving any new requests by contractors to develop functional affirmative action plans (FAAPs) or to renew/revise existing FAAP agreements.  OFCCP says it is reevaluating its policies regarding FAAPs and will issue new guidelines for FAAPs.

The Agency’s regulations permit contractors to develop affirmative action plans (AAPs) along business or functional lines, rather than according to the traditional “establishment model,” upon approval by OFCCP (41 C.F.R. § 60-2.1(d)(4)).  Under the establishment model, covered contractors must prepare separate plans for each “brick and mortar” facility with at least 50 employees.  Employees at smaller locations also must be covered in an AAP pursuant to specific rules set out in the regulations.  Some multi-establishment contractors may find it appropriate to develop AAPs based on functional or business units, that is, an AAP based on clearly distinct functional or business units within a corporate structure as opposed to an AAP based solely on physical location.

What Should Contractors Do Now?

• Contractors with expired FAAP agreements who did not seek a renewal of their FAAP agreement must develop and maintain their plans under the establishment model;
• Contractors with FAAP agreements that are not expired should continue to develop and maintain their plans based on an approved FAAP agreement or until OFCCP issues further guidance;
• Contractors applying for new FAAP agreements should develop and maintain their plans under the establishment model or until OFCCP issues further guidance;
• Contractors with applications for renewing their FAAP agreement should continue to maintain their plans according to their previous FAAP agreement or until OFCCP issues further guidance.