Who must prepare an Affirmative Action Plan?

Executive Order 11246 requires U.S. companies to prepare a written Affirmative Action Plan (AAP) for each of their establishments, if:

• they have 50 or more employees and supply and service contracts with the federal government worth $50,000 or more; or
• they serve as a depository of government funds in any amount; or
• they serve as a financial institution that is an issuing or paying agent for U.S. savings bonds and savings notes in any amount; or
• they have government bills of lading that, in any 12-month period, total or can reasonably be expected to total $50,000 or more; or
• they have federally assisted construction contracts exceeding $10,000.

How hard can this be?

Preparing the AAP is a necessary first step that many firms, including MWHRS, can assist you with.  The more important issue is minimizing the chances of the Office of Federal Contract Compliance Programs (OFCCP) finding your company out of compliance in an audit of the plan.  Adverse Impact in your selection process and pay inequities in your compensation program can be very expensive, as the OFCCP’s “Scoreboard” clearly indicates. 

We have the tools to help you recognize the problems and the knowledge and the experience to recommend solutions.