October 26, 2011

OFCCP: Do Financial Institutions Still Need Affirmative Action Plans??

Filed under: Affirmative Action,Compliance,General HR Buzz — Tags: — Joyce @ 11:01 am

You may have already heard that beginning January 1, 2012, financial institutions will no longer sell U.S. savings bonds.  In order to buy savings bonds, you will need to do so through the U.S. Treasury Department’s website:  http://treasurydirect.gov.

So what does that have to do with affirmative action obligations?  Well, if you are a bank or a credit union, you may have maintained an Affirmative Action plan based on the fact that you issue U.S. savings bonds, one of the criteria under Executive Order 11246.  The Executive Order identifies the criteria that subjects financial institutions to federal affirmative action requirements:

  • The institution is issuing and paying agents for U.S. savings bonds and notes in any amounts (no longer applicable after January 1, 2012)
  • The institution serves as a depository of government funds in any amount
  • The institution holds a prime or subcontract with the federal government of at least $50,000

So, if financial institutions are no longer issuing U.S. savings bonds, then are they relieved of their obligation to maintain an affirmative action plan?  Well, in plain language the answer is probably “no.”  The Office of Federal Contract Compliance Programs (OFCCP) takes the position that financial institutions participating in Federal Deposit Insurance Corporation (FDIC) or National Credit Union Association (NCUA) programs are still subject to the agency’s jurisdiction.

As for next steps, financial institutions should review whether they must continue to prepare written affirmative action plans.  The OFCCP’s opinion is that financial institutions that serve as a depository of government funds in any amounts, participate in FDIC or NCUA programs, or hold a federal contract or subcontract of at least $50,000 should continue to prepare affirmative action plans even after Jan. 1, 2012.  You may want to consult your Legal Counsel to review your specific situation.

If you do need to complete an Affirmative Action Plan, you probably already know that implementation and maintenance of an affirmative action plan can be an administrative behemoth.  Let the consultants at HRN help!  We can create an affirmative action plan, tailored to your organization.  Contact us today for more information.

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September 8, 2011

Affirmative Action Obligations and Savings Bonds…

Filed under: Affirmative Action,Compliance,General HR Buzz — Tags: , , — Joyce @ 9:16 am

You may have already heard that beginning January 1, 2012, financial institutions will no longer sell U.S. savings bonds.  In order to buy savings bonds, you will need to do so through the U.S. Treasury Department’s website:  http://treasurydirect.gov.

So what does that have to do with affirmative action obligations?  Well, if you are a bank or a credit union, you may have maintained an Affirmative Action plan based on the fact that you issue U.S. savings bonds, one of the criteria under Executive Order 11246.  The Executive Order identifies the criteria that subjects financial institutions to federal affirmative action requirements:

  • The institution is issuing and paying agents for U.S. savings bonds and notes in any amounts
  • The institution serves as a depository of government funds in any amount
  • The institution holds a prime or subcontract with the federal government of at least $50,000.

So, if financial institutions are no longer issuing U.S. savings bonds, then are they relieved of their obligation to maintain an affirmative action plan?  Well, in plain language the answer is probably “no”.  The Office of Federal Contract Compliance Programs (OFCCP) takes the position that financial institutions participating in Federal Deposit Insurance Corporation (FDIC) or National Credit Union Association (NCUA) programs are still subject to the agency’s jurisdiction. 

As for next steps, financial institutions should review whether they must continue to prepare written affirmative action plans.  The OFCCP’s opinion is that financial institutions that serve as a depository of government funds in any amounts, participate in FDIC or NCUA programs, or hold a federal contract or subcontract of at least $50,000 should continue to prepare affirmative action plans even after Jan. 1, 2012.

Source:  SHRM

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December 6, 2010

OFCCP Files Complaint Against Discrimination Repeat Offender

Filed under: Affirmative Action — Tags: — Monica @ 10:00 am

The Office of Federal Contract Compliance Programs (OFCCP) has filed another complaint against Minneapolis-based Nash Finch Company for systematically discriminating against female applicants.  This is not new territory for Nash Finch, which has already settled discrimination cases in the past decade at 3 of its other US facilities.  The company is the second-largest publicly traded wholesale food distributor.  It contracts with the federal government to provide goods and services to more than 200 military bases. 

The OFCCP is seeking remedies including lost wages, benefits, interest, job offers to some of the qualified candidates, and retroactive seniority.  Most notably, the agency is asking the judge to cancel all Nash Finch’s existing federal contracts.

You can read the OFCCP’s news release here:

http://www.dol.gov/opa/media/press/ofccp/OFCCP20101644.htm

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March 10, 2009

A New OFCCP Record for Recovery of $$$ From Affirmative Action Contractors

Filed under: Affirmative Action — Tags: , , , , — Jane @ 1:40 pm

In 2008 the Office of Federal Contract and Compliance recovered a record $67 million dollars from Affirmative Action contractors who had allegedly discriminated against employees and applicants based upon minority or gender status.  This is a 133% increase over what was recovered in 2001 and was up from $51 million in 2007.  Nearly 25,000 individuals shared in the back pay and other damages collected.  The damages, bad publicity, and increased federal activity in this area should prompt those contractors and subcontractors required to develop Affirmative Action plans to do so.

(more…)

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