Which Businesses Need To Have an Affirmative Action Plan?

In order to ensure workplaces remain a fair and equitable place for all employees regardless of their race, color, religion, sex, sexual orientation, gender identity, national origin, disability, or protected veteran status, the Office of Federal Contract Compliance Programs, under the umbrella of the US Department of Labor, require some businesses to ensure equal opportunity for employees and applicants seeking employment. Furthermore, these businesses will engage in affirmative action practices if they are underutilized in specific areas. To ensure compliance, it is common for the OFCCP to audit businesses considered to be federal contractors. The question is, which businesses need to have an affirmative action plan?

Executive Order 11246

In 1965, President Lyndon B. Johnson issued Executive Order 11246 to ensure individuals from certain demographics had equal opportunity in employment with federal contractors. Furthermore, federal contractors would be investigated to reduce barriers that historically disadvantaged groups from participating in the workplace. Another benefit of the Executive Order 11246 act is that it prohibits discrimination against applicants and employees who inquire, discuss, or disclose their compensation or that of others.

Affirmative Action Regulations

So, which businesses need to have an affirmative action plan? The short answer is government contractors and subcontractors. Obtaining the “subcontractor” status can be unclear and more difficult to determine. The role of a subcontractor may include arrangements such as supplying essential components to a federal contractor with direct federal contracts to the US Department of Defense. Even if you have a contract or subcontract with the government, you will not need an affirmative action plan until you exceed 50 employees and have contracts of $50,000 or more. If you’ve recently reached these thresholds, it is not uncommon to be unsure of how best to proceed with your AAP. Luckily, our affirmative action plan consultants will ensure your business meets every one of OFCCP’s expectations.

Contact Us Today

Even if you have not yet received a notice that you will be audited for compliance, get in contact with Kairos Services today to begin setting yourself up for success. Giving yourself as much time as possible to prepare will ensure your audit proceeds smoothly and without issue and will ensure your workplace is a pristine example of equal opportunity employment.