On June 14, OFCCP Director Patricia Shiu signed a directive outlining OFCCP’s new Functional Affirmative Action Program (FAAP) policies. FAAPs provide a way for Federal contractors and subcontractors to organize their AAPs by business unit or function as opposed to establishments or locations. A written agreement with OFCCP is required before contractors can implement an FAAP structure. These agreements must go through a renewal process every three years.
To meet the basic criteria for a Functional AAP each included business unit or function must:
- currently exist and operate autonomously
- include at least 50 employees
- have its own managing official
- have the ability to track and maintain its own personnel activity
The contents of a FAAP are the same as an establishment-based AAP and the contractor’s EEO compliance history from the past three years will be considered during the application period. Additionally, compliance evaluations of at least two FAAPs during the three year period will be required before renewals will be approved. During the compliance evaluation process, FAAP contractors must agree to submit personnel activity (i.e. applicant flow, hire, termination, promotion, and compensation data) in a “readable and useable electronic format” like MS Excel or Access.
Detailed requirements of FAAP agreements as well as instructions for requesting one can be found in the directive. Contact HudsonMann if you need assistance applying for a Functional AAP agreement or assessing the feasibility of this method for your organization.