Generally, federal contractors must develop a written affirmative action program for every physical location with 50 or more employees. Recognizing that the workforce is not always tied to an establishment, the Office of Federal Contract Compliance Programs (OFCCP) adopted regulations almost 20 years ago that permit contractors to adopt a Functional Affirmative Action Program (FAAP) based on functional operations instead of the establishments where employees are physically located. Contractors with clear functions or lines of business find that FAAPs make it easier to organize and analyze data, identify issues, establish clear lines of responsibility for implementing their affirmative action programs, and monitor progress towards goals. OFCCP recently issued a directive—which is open to public comment—revising its policies and procedures for requesting and maintaining FAAP agreements.
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