AAP - Compliance

E Wart

I know we all receive those "Annual Certification Notices" from all our clients and vendors regarding whether "you have an AAP" or "you are exempt etc. from AAP's" that you are to sign and return. (Executive Order 11246, and OFCCP Regulations 41 CFR 60-1.4, 60-250-5, 60-741.5)

Our company has less than 50 employees at any of our locations (about 9 through out the US), therefore my understanding is that we are exempt from most of these and are not required to maintain a written AAP for each of our establishments. However, if we have contracts (provide parts/services) of $10,000 or more/yr to/with anyone who is covered under these regulations do we have to have an AAP? Do we too have to send out these notices to all of our clients and vendors? Or does the "less than 50 employees at one location" exempt us from all of this?

E.Wart

Brad Forrister

This is a very complicated subject, and I'm probably wading in over my head. But I'm not sure you're correct in assuming that you're exempt if you don't have 50 or more employees at any one facility.

My reading of the rules:

* You're subject to the order's nondiscrimination policy if you have a contract or subcontract of $10,000.

* You're required to have a written affirmative action policy if you've got 50 or more employees and a contract or subcontract for $50,000 or more.

The regulation is worded as follows:

Each nonconstruction (supply and service) contractor must develop and maintain a written affirmative action program for each of its establishments, if it has 50 or more employees and: (i) Has a contract of $50,000 or more; or (ii) Has Government bills of lading which in any 12-month period, total or can reasonably be expected to total $50,000 or more; or ...

I read the "if it has 50 or more" as applying to the contractor, not to its establishments.

And yes, it does apply to subcontractors.

Brad Forrister
Director of Publishing
M. Lee Smith Publishers