OFCCP Director Pat Shiu spoke at the *AAAA (American Association of Affirmative Action) 40th Annual Conference last week. She reiterated being a Federal contractor is a privilege, not a right, and underscored the requirements associated with that right focusing on the OFCCP’s initiative to reduce compensation disparity. She also took time to address Federal contractor concerns regarding the new 503 and VEVRAA regulations. This year’s conference was held in Nashville, TN at the Gaylord Opryland hotel June 4-6.
BCG Principal Consultant Dr. Jim Kuthy and Consultant Heather Patchell, attended the conference and spoke Thursday on Understanding Basic Qualifications in Light of New 503 and VEVRAA Regulations.
Here are a few key points from the Basic Qualifications presentation:
The final regulations reiterate the standard for Basic Qualifications (BQs); BQs must be “job-related and consistent with business necessity.” Federal contractor’s will be required to “periodically” review all physical and mental qualifications (with changes to reference protected veterans and VEVRAA). This requirement, plus the requirement to review personnel processes, is why contractors absolutely need to update their ADA compliant job analyses. A schedule of the review must be included within the AAP. It is important to note that employers cannot use BQs to screen out applicants if the BQ is related to an essential function that could be solved and/or satisfied with a reasonable accommodation.
Good news folks! Everything doesn’t need to be done at once; focus on the high-volume positions with lots of turnover/hiring! Just like any other practice, procedure, or test, BQs must be evaluated for adverse impact. But here’s your major take-away point: to the extent any physical and/or mental qualification tends to screen out individuals with a disability, the contractor must ensure that qualification is “job-related for the position in question and consistent with business necessity” (i.e., valid).
- Download the Understanding Basic Qualifications in Light of New 503 and VEVRAA Regulations presentation slides (PDF)
If you have questions regarding compensation disparity, the new Section 503 and VEVRAA regulations, job analyses, or basic qualifications, let us know. We can help.
Upcoming BCGi Webinar:
If you were unable to attend the Understanding Basic Qualifications in Light of New 503 and VEVRAA Regulations conference presentation, it’s not too late. Jim Kuthy and Heather Patchell will share the same content in an upcoming BCGi webinar on July 10, 2014!
*The AAAA is now called the AAAED – American Association of Access Equity and Diversity.