Affirmative Action Compliance for

RecruitersSherry Rest SHRM-CP, PHRAllen Hudson SHRM-CP, PHR

Webinar Agenda

BackgroundWho is OFCCP?

Areas of LiabilityFour common pitfalls

Best PracticesFor minimizing liability

QuestionsWhat’s keeping you up

at night?

www.hudsonmann.com 843.884.5557

EQUAL PAY ACT

CIVIL RIGHTS ACT

TITLE VII

EXECUTIVE ORDER 11246

REHABILITATION ACT

VIETNAM VETERANS ACT

IMMIGRATION REFORM & CONTROL

ACT

AMERICANS WITH DISABILITIES ACT

JOBS FOR VETERANS ACT

ADA AMENDMENTS ACT

GENETIC INFORMATION

NONDISCRIMINATION ACT

LILLY LEDBETTER FAIR PAY ACT

EXECUTIVE ORDER 13496

1963 1964 1965 1973 1974 1986 1990 2002 2008 2008 2009 2009

Landmark Laws

Affirmative Action Is…

A commitment to make good faith efforts and take positive, results-oriented action to eliminate employment barriers affecting women and minorities.

Affirmative Action Is Not…• A quota system

• A requirement to:

1. Hire

2.Promote

3.Transfer

4.Mentor

Unqualified candidates regardless of race or sex

QUOTASYSTEM

Executive Order 11246

Prohibits Federal contractors and subcontractors from discriminating in employment practices for reasons of:

Race, Color, Religion, Sex, Sexual Orientation, Gender Identity, National Origin

Requires that all Federal contractors and subcontractors with 50 or more employees and contracts of $50,000 or greater

Develop and implement written Affirmative Action Plans

Why Be An Affirmative Action Employer?

It’s the Law (Business With Federal government)

Effective Management Tool

Allows strategic oversight and analysis of diversity efforts

Analyze recruiting efforts, sources of applicants and recognize systemic barriers to employment

Provides methods to evaluate equity in hiring, termination, promotion, training and pay

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Enforcement Agencies

Equal Employment Opportunity Commission (EEOC):

Investigates and enforces violations of employees’ rights in the workplace.

Office of Federal Contract Compliance Programs (OFCCP):

Enforces and monitors Affirmative Action Programs of Federal contractors.

OFCCP’s Enforcement JurisdictionExecutive Order 11246

Vietnam Era Veterans Readjustment Assistance Act

Section 503 of the Rehabilitation Act

FY 2017 monetary relief

Areas of Greatest LiabilityIn an OFCCP Audit

Especially in application and hiring processes

Adverse Impact

Required and voluntary outreach are both needed

Outreach

Compensation systems and fair pay are in the spotlight

Pay Equity

Record retention rules and supporting documentation

Recordkeeping

Adverse Impact in Hiring

of discrimination findings are from hiring discriminationFY 2017

Adverse Impact Example

100 White Applicants

50 White Hires

50% Hire Rate

50 Minority Applicants

10 Minority Hires

20% Hire Rate

20/50=40%

01 The individual submits an expression of interest in employment via the Internet or related technology.

02 The contractor considers the individual for employment in a particular position.

(2-year recordkeeping requirement begins at this stage)

Definition of Internet ApplicantFinal Rule by OFCCP

03 The submission indicates the individual possesses the basic qualifications for the position.

(established in advance; non-comparative, objective, relevant)

04 The job seeker did not later indicate a lack of interest in the job for which he

or she was considered.

Use accurate disposition codes!

Key Takeaway #1

Sample Disposition Codes

Compensation & Pay Equity

of discrimination findings are from compensation issuesFY 2017

Compensation & Pay EquityPay Equity Starts with Starting Pay

Avoid Job Steering

Coordinate with HR on starting pay

Key Takeaway #2

Compensation & Pay Equity

Pay Equity Starts with Starting Pay

Avoid Job Steering

Job Steering

The practice of steering employees who are members of a protected class toward lower paying jobs at hire

Can result from explicit or implicit bias

job steering settlement amountFY 2015

Job Steering Case Study444 women steered into “light-duty” jobs with lower wages

Adverse impact in hiring on males, African-Americans and Caucasians

Settlement from reviews at nine separate facilities

Require applications for specific positions

Key Takeaway #3

Outreach

AAP Goals & Hiring BenchmarksKnow where your AAP goals are

*Women & Minorities

*Individuals with Disabilities – 7% goal

*Veterans - 6.4% Hiring Benchmark

www.jobbankinfo.org

Good Faith Outreach Efforts

Educational institutions or other professional organizations to reach qualified women and minority candidates

Job advertisements targeting veterans & individuals with disabilities

Partnerships with local veterans' service organizations

Outreach Log

Know your AAP goals& document your outreach

Key Takeaway #4-5

https://ofccp.dol-esa.gov/errd/

OFCCP Employment Referral Resource Directory

Recordkeeping

Recordkeeping IssuesMaintain 3 years’ of employment and recruitment data

Including assessment documents

Must keep longer if in an audit

VEVRAA and

Section 503 Evaluations of

Outreach

 

Affirmative Action Program for Veterans 

4212 Evaluation of Outreach and Other Required Reviews 

 

Evaluation of Effectiveness of Outreach and Recruitment Efforts 

Date of Evaluation 

As part of our evaluation of our outreach and recruitment efforts towards veterans, we have reviewed progress towards the hiring benchmark, the number of job seekers that have self‐identified as protected veterans, and the quantity and quality of outreach sources. 

Our veterans hiring rate for the preceding AAP year was ##%. The overall percentage of job seekers that self‐identified as veterans was ##%.  A total of ## job seekers self‐identified as protected veterans. 

Additionally we have identified a number of outreach sources that are targeted towards veterans.  These include:  [list of outreach sources] 

Based on these factors, we determine that the totality of our outreach efforts towards veterans is/is not effective in identifying and recruiting qualified protected veterans. 

[if totality of efforts is found to be not effective, include the following:]  Since we have determined the totality of efforts to not be effective, we will implement the following alternative efforts:  [include list] 

 

Review of Personnel Processes  

On <date of review> we reviewed our personnel processes to determine whether our programs provide careful, thorough and systematic consideration of protected veterans. Based upon this review, <company> will modify the personnel processes when necessary, and will include the development of new procedures in this affirmative action program to ensure equal employment opportunity. To date, no modifications have been necessary.  

 

Review of Job Descriptions 

Physical and mental job qualifications of all jobs were reviewed on <date of review> to ensure they do not tend to screen out qualified protected veterans. No qualification requirements were identified and all job qualification requirements were found to be job‐related and consistent with business necessity and safety. 

DocumentationDocumentationDocumentation

Key Takeaway #6

How Do You Minimize Potential Liability?•Follow a formal application process

•Utilize disposition codes

•Avoid “informal” expressions of interest

•Set up an active consideration period

•Don’t accept applications for “any opening”

•Posting temp to hire opportunities

•Review employee referral selection process

•Set and utilize minimum qualifications – track outcomes

•Review testing validation

Questions?

Additional Training ResourcesOnline Courses:

- Affirmative Action Basics – FREE intro course

- Affirmative Action Essentials – 4+ hrs. of video learning

- EEO & AAP for Managers and Supervisors

In-person AAP Seminars (1.5 days):

- August 16-17 – Charleston, SC (SOLD OUT)

- November 1-2 – Indianapolis, IN

More information at HudsonMann.com/training

Good Faith Dashboard

Available on iPlans™

Questions?

Allen Hudson, SHRM- CP, PHR

Chief Operating Officer

ahudson@hudsonmann.com

Sherry Rest, SHRM- CP, PHR

Director, Client Services

srest@hudsonmann.com

HudsonMann.com – 843-884-5557

Thank you!