Legal Alert: OFCCP Reinstates Use of Functional Affirmative Action Program Agreements

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The Department of Labor's Office of Federal Contract Compliance Programs (OFCCP) has issued a directive reinstating the use of Functional Affirmative Action Program agreements and revising the requirements for the use of such agreements.

Executive Order 11246 requires companies with 50 or more employees and a federal contract of $50,000 or more to create and implement affirmative action plans (AAPs). Generally contractors must develop, implement and maintain an AAP for each physical location of an establishment with 50 or more employees. OFCCP regulations interpreting EO 11246 permit large companies to develop and maintain AAPs based on function or business unit instead of by establishment though Functional Affirmative Action Program (FAAP) agreements.

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