Monday, July 4, 2011

OFCCP Issues New FAAP Directive

Jackson Lewis Employer Alert

The Office of Federal Contract Compliance Programs (OFCCP) has issued a new FunctionalAffirmative Action Plan (FAAP) directive that governs the application, updating, modification,renewal, and administration of FAAP Agreements. FAAP Agreements permit covered federalcontractors to develop affirmative action plans (AAPs) along functional or business units ratherthan by physical establishment. The directive is effective June 14, 2011. The release of thedirective ends OFCCP’s lengthy moratorium on considering new requests for, and modificationsto, FAAP Agreements.Under the federal affirmative action regulations, covered contractors are obligated to include allemployees in a written affirmative action plan (AAP) and maintain a separate plan for eachphysical establishment of at least 50 employees. This method of constructing AAPs is known asthe “establishment model.” But the affirmative action regulations permit covered contractors todevelop AAPs based on functional or business units rather than by establishment. AAPs preparedin this fashion are known as functional affirmative action plans or FAAPs. However, beforecontractors can prepare FAAPs, they must secure permission from, and enter into a FAAPagreement with, OFCCP.

Full Story: email AAAA at

No comments: