Affirmative Action Program (AAP)

An affirmative action program (AAP) is a proactive tool used by employers, particularly federal contractors and subcontractors, in the United States to ensure equal employment opportunities for individuals from historically marginalized or underrepresented communities. The AAP is a written document that outlines the organization’s strategies, policies, and procedures to ensure all qualified applicants and employees receive equal opportunity to be selected for and succeed in employment.

Key Components of an Affirmative Action Program

Below is a broad overview of the key components of an affirmative action program or AAP. Contractors should review the applicable regulations for specific details.

• Invitations to self-identify. Contractors extend invitations to employees and applicants to voluntarily self-identify as an individual with a disability or protected veteran. Also, contractors extend invitations to employees and applicants to voluntarily self-identify their race, ethnicity, and sex.
• Demographic analyses for race, sex, and ethnicity. Contractors must compare data on the race, sex, and ethnicity of their workforce to the characteristics of the qualified workforce in their recruitment area. Contractors prepare for these analyses by making sure their workforce demographic information is up-to-date and readily available, and by reviewing the race, sex, and ethnic composition of their workforce.
• Setting goals to increase underrepresented groups and conducting targeted outreach and recruitment, as needed. If the comparisons of demographic characteristics of employees and the qualified workforce in the recruitment area show that inclusion of women or ethnic or racial minorities is lower than would be expected, contractors will establish written goals and engage in targeted outreach and recruitment efforts to increase the proportion of these underrepresented groups.
• Examination of the proportion of individuals with disabilities in AAP. Contractors use the self-identification information to compare the representation of individuals with disabilities in their workforce to the aspirational goal of 7% of employees who are qualified individuals with disabilities for each job group in the contractor’s workforce or the contractor’s entire workforce.
• Examination of the hiring of protected veterans. Covered contractors must set, for each of their establishments, annual hiring benchmarks for protected veterans, either based on the national percentage of veterans in the workforce (adjusted annually and available at https://www.dol.gov/agencies/ofccp/vevraa/hiring-benchmark) or an individualized benchmark based on five factors described in 41 CFR §60-300.45(b)(2) (more information on those factors is available at https://www.dol.gov/agencies/ofccp/vevraa/hiring-benchmark/method.) The benchmark applies only to hiring data applied in federal contractors’ AAPs. Failure to meet the benchmark will not carry any penalties. Rather, contractors should use the result of this comparison when assessing the effectiveness of their veteran outreach and recruitment efforts to determine if further efforts are necessary.
• Annual review of personnel practices. This review involves examining employment practices, policies, and decisions for the impact they have on employing minorities, women, individuals with disabilities, and covered veterans in the program. All contractors with AAPs should conduct this review, even if they do not need to set goals or engage in targeted outreach and recruitment activities. Any policies that create barriers to equal opportunity must be revised.

Requirements & Compliance

• Regulatory Compliance: Covered federal contractors and subcontractors in the United States are required to develop and maintain AAPs as a condition of their contracts with the federal government.
• Office of Federal Contract Compliance Programs (OFCCP): The OFCCP, part of the U.S. Department of Labor, oversees compliance with affirmative action requirements and conducts audits to ensure contractors are implementing their AAPs effectively.
• Organization of AAPs: Contractors most commonly create AAPs based on each physical establishment of 50 or more employees. However, with permission from OFCCP, companies may organize their AAPs by business unit or function, rather than by physical location.
• Documentation & Reporting: Contractors must submit AAPs and related data to the OFCCP upon request during compliance evaluations.

Implementation & Benefits

• Promoting Diversity: AAPs are designed to foster a diverse workforce reflecting the broader community and society.
• Legal Protection: By adhering to AAP guidelines, organizations mitigate legal risks associated with discrimination complaints and lawsuits.
• Enhanced Reputation: Demonstrating a commitment to diversity and inclusion can enhance an organization’s reputation among employees, customers, and stakeholders.