BANK HR   

Why Do We Have to Have An Affirmative Action Plan?

An Affirmative Action Plan is a human resources management guide that, although required by the federal government, provides critical information on your efforts to recruit and retain qualified females and minorities and veterans in all positions. An Affirmative Action Plan is also a community action program that provides management with the necessary information to employ a workforce that is reflective of its customer base. 

Affirmative Action Plans are required for all employers who have 50 or more employees and hold at least $50,000 in government contracts. Banks and credit unions are considered federal contractors because they use process federal funds in several ways: use of the fed wire, processing savings bonds, processing federal employee’s paychecks, etc. Affirmative Action Plans incorporate the following three equal employment opportunity laws, and they are enforced by Office of Federal Contract Compliance Programs (OFCCP):

Executive Order 11246, as prohibits discrimination and requires affirmative action to ensure that all employment decisions are made without regard to race, color, religion, sex or national origin.

Section 503 of the Rehabilitation Act of 1973, as amended prohibits discrimination and requires affirmative action in the employment of qualified individuals with disabilities.

The Vietnam Era Veterans' Readjustment Assistance Act of 1974, (VEVRAA) as amended prohibits discrimination against specified categories of veterans protected by the Act and requires affirmative action in the employment of such veterans. Effective December 1, 2003, the Jobs for Veterans Act (JFA) amended VEVRAA’s federal contracting provisions regarding coverage, protected groups and mandatory job listing requirements for all federal contracts entered into on or after December 1, 2003. Contracts entered into before this date are subject to the VEVRAA requirements as they stood before enactment of JVA.

OFCCP monitors compliance with these equal employment opportunity laws and their corresponding affirmative action requirements primarily through compliance evaluations, during which a compliance officer examines the contractor's affirmative action program and employment practices. OFCCP also investigates complaints filed by individuals alleging discrimination by federal contractors and subcontractors on the basis of race, color, sex, religion, national origin, status as a qualified individual with a disability or as a protected veteran.

Once your employee population reaches 50 or more employees, your have 120 days to develop an Affirmative Action Plan.  Additionally, should you ever receive and EEOC charge of discrimination for any reason, you will be required to supply a copy of your AAP to the EEOC if asked.

In addition you are also required to file an annual EEO-1 Report with the EEOC. See Our Services for more information on what we do.