Many employers ask about creating FAAPs (Functional Affirmative Action Plans). For some, this seems like a reasonable approach to creating an AAP because the FAAP might align the personnel selections better with the decision makers who make them. However, it is wise to read the fine print before you or your employer considers going down the FAAP path. As found on the OFCCP’s FAQs regarding FAAPs, FAAP contractors are “guaranteed” to receive at least two (2) audits within the three (3) year FAAP agreement window.
Consider the below excerpt from the OFCCP FAAP FAQs:
“What is a Functional Affirmative Action Program?
Each covered non-construction (supply and service) contractor must develop and maintain an affirmative action program (AAP) in accordance with 41 CFR Part 60-2. For a majority of contractors, establishment-based AAPs are developed and maintained. However, for some multi-establishment contractors that have large business or functional units such as a Sales Division or Research and Development function that span across establishments located in different states or regions, an AAP may be developed by functional or business units. These functional AAPs or FAAPs will allow the contractor to examine whether its personnel practices and affirmative action efforts are sufficient to ensure equal employment opportunity for applicants and employees of a functional or business unit, rather than a particular establishment.”
“Will other functional or business units of my company get evaluated during the current year?
That is possible. As stated earlier, OFCCP uses administratively neutral selection criteria to select functional or business units for compliance evaluation, and more than one unit may be selected in a given year. In addition, FAAP contractors must have at least two functional or business units undergo a compliance evaluation during the three-year term of the FAAP agreement before an existing agreement is renewed. To meet this requirement, OFCCP will use administratively neutral selection criteria to select the contractor’s functional or business units, and will conduct compliance evaluations of at least two of the contractor’s functional or business units during the three-year term of its functional AAP agreement. Contractors with only one functional or business unit covered under a functional AAP must have this unit undergo a compliance evaluation before they are eligible to renew their FAAP Agreements, and OFCCP will conduct a compliance evaluation of the contractor’s functional or business unit during the three-year term.”
If the audit guarantee isn’t scary enough, click the link below to read more about the approval and change notification process to determine whether or not FAAPs are worth considering.