3 Reasons Your Company Needs an Affirmative Action Program

business people

Does your business work with Government contracts? If so, you may need an Affirmative Action Plan.

President Jonh F. Kennedy first introduced Affirmative Action in 1961. However, it didn’t get signed into law until 1964 by President Lyndon B. Johnson. 

All contractors must meet equal employment opportunity (EEO) regulations. Furthermore, your company definitely needs to comply with OFCCP (The U.S. Department of Labor’s Office of Federal Contract Compliance Programs).

If you don’t, you could face serious consequences. Keep reading to learn three reasons why you need an Affirmative Action Program

What Is the OFCCP?

The OFCCP is set in place to protect workers, promote diversity, and enforce the law. They make sure anybody who does business with the government, i.e., contractors and subcontractors, adhere to federal Affirmative Action standards and regulations

Secondly, contractors and subcontractors cannot discharge employees due to race, color, religion, gender, disabilities, or protected veterans. They conduct compliance evaluations that determine if a contractor is doing what they need to be doing to help maintain employment practices that aren’t discriminatory.

It might seem complicated, but requirements and solutions are quite simple, as long as you understand why you would need an Affirmative Action Program.

1. You’re Required to Comply and Need an Affirmative Action Program

The main reason you need an Affirmative Action Program is if you’re required to have one. Plus, you should do the right thing to have a diverse and protected workforce.

If you have 50 or more employees, and one of the following: $50,000 in federal contracts or subcontracts, Government Bills of Lading that total $50,000 or more in a twelve-month period, or if you have a depository of Government funds. 

Once your company hits either of the criteria, then you have 120 days to comply and have an Affirmative Action Program in place. Also, it’s important to remember that the program has to be updated every year to track any changes. 

2. Litigation Time and Money

If your company gets hit with an Affirmative Action lawsuit, you’ll most likely spend a lot of time and money fighting it. There are many groups out there who will gladly spend years fighting back on discrimination. 

Your company may not survive this type of lawsuit. If it does survive, you’ll certainly be taxed enough to where revenue and quality of service might slip, which might also cause you to have to shut the doors. 

3. Affirmative Action Programs Guarantee Workplace Diversity

Affirmative Action Programs may not only be required, but they guarantee workplace diversity. The best way to go about this is to hire the right risk management solution firm

Doing so will give you an all-in-one solution that provides vulnerability analysis, audit support, detailed workforce analysis, and valuable HR teams and managers training. 

If you don’t hire the right firm, you could end up like Princeton University. Princeton was recently ordered to pay $925,000 in back pay plus another $250,000 in future salary to employees due to allegations of compensation discrimination. 

If You’re in Need, We’re Here

If you fall into the category of needing to comply with the OFCCP and need an Affirmative Action Program, you’re in the right place. Once your company hits the threshold, you have only 120 days to fall in line. 

Don’t waste any time and get things rolling straight away. Contact us to get started now.

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