The Whitney Smith Company, Inc.

Affirmative Action Plans

Employers in organizations with direct dealings or contracts with the federal government should be aware of requirements to maintain written affirmative action plans (AAPs). Many other organizations must also realize that their dealings with other companies may qualify them as a subcontractor and subject them to the requirements to maintain affirmative action plans.

Under the regulatory requirements, organizations with 50 or more employees must develop and maintain affirmative action plans if they: (1) have a single contract with an organization in the executive branch of the federal government of $50,000 or more; (2) have government bills of lading that can reasonably be expected to total $50,000 in any 12-month period; (3) serve as a depository of government funds in any amount; (4) are a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes in any amount; and/or (5) conduct business with another company meeting one or more of these criteria.

Each organization meeting these requirements must actually maintain separate AAPs for: (1) minorities and women; (2) individuals with disabilities; and (3) veterans of the Vietnam era and disabled veterans. All three plans must contain a narrative describing the organization's support of and adherence to statutes and regulations requiring the provision of equal opportunities in all aspects of employment. The narratives must also outline actions to be taken to implement affirmative action to ensure accessibility of protected class members to all employment opportunities. AAPs must be developed and updated on an annual basis, reflecting the effect of actions throughout the year on the employment of females and minorities and describing actions to be taken during the upcoming year.

Only the AAP for minorities and females is required to contain an additional section of reports and analyses detailing the female and minority composition of the company's workforce and comparing it to the overall availability of these protected class members for such positions. Goals must then be set for direction of employment activities, to encourage the employment, transfer, and/or promotion of female and minority applicants and employees as opportunities become available.

An affirmative action plan is a detailed and technical document, requiring much thought and care in its compilation and composition. Used effectively, AAPs will guide an organization in providing equal opportunities in employment to all individuals and will help to ensure compliance with all applicable statutes.

Affirmative Action Plan Development

For those clients subject to affirmative action requirements regulated by the Office of Federal Contract Compliance Programs, written Affirmative Action Plans are prepared and reviewed with the client. The plans include detailed statistical analyses of the client's workforce and employment transactions as required by law.

Affirmative Action Compliance Audit & Compliance Review

The client's affirmative action program and employment transactions are reviewed, with a report submitted to management providing recommendations to ensure compliance with affirmative action requirements. In the event of an audit by the Office of Federal Contract Compliance Programs, assistance and guidance is provided throughout the audit process.