Federal Contractor Glossary

Accessibility is a proactive approach to designing products, services, technologies, and environments so that they can be usable by people of all abilities, including those with disabilities. Accessibility laws exist to help individuals with disabilities, but employers and employees can benefit from accommodating all applicants and employees.

Affirmative action is an umbrella term for proactive efforts to advance equal opportunity in employment, business, and education for members of disadvantaged or underrepresented communities including racial and ethnic minorities, women, individuals with disabilities, and veterans.

An affirmative action program (AAP) is a comprehensive strategy that outlines an organization’s commitment to equal employment opportunities and diversity. It includes specific goals, action-oriented programs, and other proactive compliance measures aimed at addressing historical disadvantages and promoting inclusivity in the workforce.

American Job Centers (also known as AJCs and One-Stop Career Centers) are public resource centers providing in-person and online employment and career services and assistance to job seekers and employers, including recruitment assistance, customized workforce solutions, business services support, incentives and tax credits, compliance assistance, and more.

The Americans with Disabilities Act (ADA) prohibits discrimination against people with disabilities in several areas, including employment, transportation, public accommodations, communications and access to state and local government’ programs and services. As it relates to employment, Title I of the ADA protects the rights of both employees and job seekers.

A Business Services Representative connects employers with qualified job seekers by building relationships with businesses to understand their hiring needs and promote workforce development programs and services to help both parties achieve their employment goals.

CareerOneStop is an online platform operated by the U.S. Department of Labor, Employment and Training Administration. It serves as a comprehensive resource for individuals seeking career guidance, job search assistance, and training opportunities, indirectly supporting employers.

A community-based organization is a public or private nonprofit organization of demonstrated effectiveness that is representative of a community or significant segments of a community and provides educational, employment, or related services to those individuals.

A compliance evaluation as it relates to federal contractors refers to a specific type of audit or assessment conducted by the Office of Federal Contract Compliance Programs (OFCCP), which is part of the U.S. Department of Labor. The OFCCP is responsible for ensuring that federal contractors and subcontractors comply with equal employment opportunity (EEO) and affirmative action regulations.

A conciliation agreement resulting from an Office of Federal Contract Compliance Programs (OFCCP) compliance evaluation is a voluntary resolution reached between the OFCCP and a federal contractor or subcontractor following findings of potential non-compliance with equal employment opportunity (EEO) and affirmative action requirements.

The Disabled Veteran Outreach Program (DVOP) is a vital initiative aimed at supporting disabled veterans in overcoming barriers to employment, promoting their career success, and facilitating their integration into the civilian workforce through targeted employment services and advocacy efforts.

Disposition codes are standardized labels used within applicant tracking systems (ATS) to categorize and track the outcomes of job applicants throughout the recruitment and hiring process. They ensure consistency in documenting applicant statuses and outcomes, facilitating efficient decision-making and reporting for hiring teams. Disposition codes also support compliance with equal employment opportunity (EEO) regulations by providing transparency and accountability in candidate evaluation and selection processes.

Diversity, equity, and inclusion (DEI) are fundamental principles aimed at creating fair and respectful environments within workplaces, educational institutions, and communities. Together, DEI initiatives aim to cultivate environments where diversity is celebrated, equitable opportunities are provided, and all individuals can contribute fully and thrive.

Employment counselors act as intermediaries between job seekers and employers, leveraging their expertise to facilitate mutually beneficial employment outcomes, support workforce development efforts, and contribute to the economic vitality of communities. Their collaboration with employers is essential in addressing labor market needs and promoting sustainable employment opportunities.

An Employment Service Delivery System (ESDS) is an employment service office in a state or locality that provides labor exchange services, including employment, training, and placement services, as part of the national One-Stop/American Job Center service delivery network established by the states per the Wagner-Peyser Act.

An EOE statement, short for Equal Opportunity Employer statement, is a declaration stating that an employer will comply with applicable anti-discrimination laws. It promotes a workplace environment that is fair and inclusive and communicates the employer’s commitment to diversity, equity, and non-discrimination in all aspects of employment practices.

Equal Employment Opportunity (EEO) refers to the principle and practice of ensuring that individuals are treated fairly and without bias in all aspects of employment, including hiring, promotion, transfers, training, compensation, and termination. It prohibits discrimination against employees or job applicants based on characteristics such as race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age, disability, or genetic information.

The Equal Employment Opportunity Commission (EEOC) is a federal agency that enforces laws that make discrimination in the workplace illegal. The EEOC oversees many types of work situations, including hiring, firing, promotions, harassment, training, wages, and benefits.

Federal contractors (also known as a government contractors) are businesses or organizations that enter into agreements with the U.S. federal government to provide goods or services, ranging from construction projects to research initiatives. Federal contractors fall under the U.S. Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) enforcement jurisdiction under their contractual relationships with the U.S. federal government. As such they must adhere to affirmative action obligations, develop plans to promote diversity and prevent discrimination in their workforce, and comply with reporting and auditing requirements.

An individual with disabilities (IWD) is someone who has a physical or mental impairment that significantly limits one or more major life activities, such as mobility, sensory perception, learning, or emotional health. Laws that protect IWDs also cover (1) individuals with a record of such impairment, and/or (2) those who are regarded as having such an impairment. The term emphasizes the person’s abilities and potential contributions to society, advocating for equal opportunities, accessibility, and inclusion in all aspects of life through disability rights movements and legal protections.

Job listing is a requirement for covered Federal contractors as mandated by the Vietnam Era Veterans Readjustment Assistance Act of 1974 (VEVRAA) to transmit their job openings to local Employment Service Delivery Systems (ESDS) in formats approved by the respective ESDS. This task includes electronic transmission via web-based platforms if required, or by alternative methods such as facsimile or mail if permitted.

A job posting is when state entities receive job listings from federal contractors, and these listings are subsequently posted on the respective state job bank. DirectEmployers both “lists” its Members’ jobs and thereafter, “posts” them on the state workforce agency job bank as an additional courtesy for its Member companies to assist their recruitment efforts. Federal contractors are not obligated to directly post on state job banks, provided they comply with the requirement to list their job openings through approved methods.

A Local Veteran Employment Representative (LVER) is an individual who works within the publicly-funded American Job Center network in the United States. Their primary role is to assist veterans in finding suitable employment opportunities. LVERs work closely with employers to facilitate the hiring and retention of veterans and play a vital role in fostering inclusive workplaces that value the contributions of veterans and support their successful integration into civilian employment.

The National Association of State Workforce Agencies (NASWA) is a national organization representing all 50 state workforce agencies, D.C., and U.S. territories to provide training, employment, career, business, and wage and hour services, as well as administering unemployment insurance, veteran reemployment, and labor market information programs. Through a partnership with DirectEmployers, they also help power the National Labor Exchange (NLx).

The National Labor Exchange (NLx) is an electronic labor exchange network that is a product of DirectEmployers’ partnership with the National Association of State Workforce Agencies (NASWA) designed to collect and distribute job openings exclusively found on corporate career websites, state job banks, and federal government job sites.

OFCCP reporting requirements mandate federal contractors and subcontractors adhere to several obligations aimed at ensuring equal employment opportunity and affirmative action. Failure to meet these requirements can lead to penalties or loss of federal contracts, emphasizing the importance of strict adherence to OFCCP regulations.

The Office of Federal Contract Compliance Programs (OFCCP) is a part of the U.S. Department of Labor that enforces compliance with equal employment opportunity and affirmative action requirements for those who do business with the federal government. These requirements include developing and reviewing affirmative action plans, conducting compliance evaluations, and investigating complaints of discrimination. OFCCP aims to promote proactive equal employment practices among federal contractors to ensure a diverse and inclusive workforce.

Outreach requirements for OFCCP compliance mandate federal contractors and subcontractors actively engage in efforts aimed at promoting equal employment opportunities and diversity. Contractors are required to maintain records of their outreach activities and periodically evaluate their effectiveness in achieving diversity goals.

Outreach management involves federal contractors’ and subcontractors’ structured planning, execution, and evaluation of their efforts to promote equal employment opportunities and diversity, as required by OFCCP regulations. Tools such as DirectEmployers’ proprietary Partner Relationship Manager assist employers with these steps toward compliance with OFCCP’s outreach requirements.

Partner assessments involve federal contractors and subcontractors evaluating the effectiveness of their outreach strategies to demonstrate their commitment to fostering a diverse and inclusive workplace, compliance with OFCCP requirements, and continuous improvement of their diversity recruitment strategies based on evaluation outcomes.

The Partner Relationship Manager (PRM) is a proprietary technology developed by DirectEmployers that allows employers to conduct, track, assess, and report all outreach activities in one easy-to-use application.

Priority veteran referrals are an affirmative action obligation under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) that requires covered federal contractors to prioritize the recruitment and hiring of veterans by listing their employment openings (with limited exceptions) with the state workforce agency job bank or with the local employment service delivery system (ESDS) where the opening occurs. This use of the public workforce system, particularly American Job Centers (AJCs), is intended to support veterans’ transition to civilian employment by giving them preferential access to job placement services. Contractors must provide information about the job vacancy in a manner and format permitted by the appropriate ESDS which will allow that system to provide priority referral of veterans protected by VEVRAA for that job vacancy. With their initial listing, contractors must also provide the ESDS with certain information prescribed in the regulations

Under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA), a protected veteran is defined as an individual who meets specific criteria based on their military service. VEVRAA mandates that federal contractors and subcontractors take affirmative action to recruit, hire, and advance protected veterans in employment.

Section 503 of the Rehabilitation Act of 1973 (Section 503) mandates that covered federal contractors and subcontractors take affirmative action to prevent discrimination against individuals with disabilities in employment practices and to provide reasonable accommodations to enable them to perform their essential job functions. Section 503 further requires covered contractors to take affirmative action to recruit, hire, promote, and retain these individuals. It also requires contractors to collect certain information, do specified analysis of that information annually, and keep records of these activities for three years.

Self-identification in employment refers to the voluntary disclosure of personal demographic information by individuals to their employers or potential employers, typically through forms or surveys. This information can include details such as race, ethnicity, gender, disability status, protected veteran status, or other protected categories.

A state job bank is an online platform operated by a state’s workforce agency or department of labor, designed to connect job seekers with employers within that state. These platforms feature comprehensive listings of job openings across various industries, allowing job seekers to search, and apply for, positions based on their preferences and qualifications. For employers, state job banks provide services such as posting jobs, searching for candidates, and managing recruitment processes.

Underrepresented communities refer to demographic groups that have been historically marginalized or face systemic barriers in the workforce. This includes racial and ethnic minorities, women, individuals with disabilities, protected veterans, LGBTQ+ individuals, and more. What constitutes an underrepresented group may vary by geographic region, industry, and other factors.

VetCentral, developed by DirectEmployers, is a proprietary technology designed to support federal contractors in compliance with the Jobs for Veterans Act (JVA) and the Vietnam Era Veterans Readjustment Assistance Act (VEVRAA). It serves as a platform for delivering federal contractor jobs and providing priority veteran referrals, automating the acquisition and distribution of job listings from employer career sites to American Job Centers (AJCs), and ensuring compliance with VEVRAA’s mandatory job listing requirements.

The VETS-4212 form refers to the reporting requirement under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) that mandates federal contractors and subcontractors to annually submit information on their employment of protected veterans to the U.S. Department of Labor (DOL). The purpose of VETS-4212 reporting is to monitor and enforce compliance with VEVRAA, ensuring that federal contractors are actively recruiting, hiring, and promoting protected veterans in their workforce.

A VEVRAA hiring benchmark is a standard numerical percentage goal set by federal contractors and subcontractors to measure their effectiveness in hiring protected veterans under the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). Contractors can either use a benchmark based on the national percentage of veterans in the civilian labor force, which the Office of Federal Contract Compliance Programs (OFCCP) provides and updates annually, or establish an individualized custom benchmark based on their workforce and labor market conditions (as outlined in OFCCP’s regulations implementing VEVRAA).

The Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) of 1974 is a U.S. federal law requiring federal contractors and subcontractors to take affirmative action to recruit, hire, promote, and retain protected veterans.

Vocational rehabilitation (VR) is a process designed to assist individuals with disabilities or other barriers to employment in preparing for, securing, and maintaining meaningful employment. By engaging with VR services, employers can tap into a diverse talent pool, comply with federal regulations, and create supportive environments where individuals with disabilities can thrive professionally.

VocRehab+ is a technological solution developed by DirectEmployers to foster connections between employers and vocational rehabilitation (VR) counselors across the country, with the goal of enhancing employment opportunities for individuals with disabilities. This innovative tool utilizes advanced technology and automation to guarantee precise and top-tier daily job notifications to VR counselors collaborating with participating employers.