These Frequently Asked Questions are offered to foster a better understanding of federal construction contractor obligations and OFCCP’s construction compliance evaluation process. They are not intended to be all-inclusive but rather supplement other compliance assistance materials, particularly the Construction Contractors Technical Assistance Guide (TAG).

APPLICATION OF LEGAL AUTHORITIES

  1. When does Executive Order 11246 apply to federal construction contractors?
  2. When do Section 503 of the Rehabilitation Act of 1973 (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) apply to federal construction contractors?
  3. What is the difference between a direct federal construction contract and a federally assisted construction contract?
  4. Are federal construction contractors required to develop a written affirmative action program (AAP) under Executive Order 11246?
  5. Are direct federal contractors required to develop VEVRAA and/or Section 503 AAPs based upon the aggregate total of all construction trade and non-trade employees company-wide?
  6. I have a construction contract only. Some of my employees do not work in construction trades. Are these employees covered under 41 CFR part 60-4? 
  7. If a prime contractor has both a construction and a supply and service contract, which employees are covered under 41 CFR part 60-2 and which employees are covered under 41 CFR part 60-4? 
  8. If a contractor has a single contract that involves both construction and nonconstruction, which affirmative action obligations apply to the contract?
  9. How can a contractor determine whether a contract involves both construction and supplies and services?
  10. Where can a construction contractor find detailed information regarding obligations and compliance evaluations?
  11. What is Executive Order 13496 and is it applicable to construction contracts?
  12. What are the physical posting and contract inclusion requirements of Executive Order 13496?

OFCCP CONSTRUCTION EVALUATION PROGRAM

  1. What if the contractor’s geographic area does not have a minority participation goal because it was designated after 1980?
  2. Are covered construction contractors and subcontractors required to comply with OFCCP-administered laws at all construction worksites?
  3. Does OFCCP have a process for evaluating a construction contractor when a project has more than one place of performance? For example, an interstate paving project that encompasses multiple counties.

INVESTIGATING DISCRIMINATION

  1. What does OFCCP look for during a compliance evaluation in terms of discrimination?
  2. Is harassment a form of discrimination that OFCCP looks for during a compliance evaluation?
  3. Are contractors permitted to use tests or other exams to select individuals for hire?
  4. Are construction contractors required to monitor their compensation policies and practices and personnel activity? 
  5. If employees or applicants experience discrimination while working for or applying to work for a federal or federally-assisted construction contractor or subcontractor, what can they do?

OFCCP COMPLIANCE REVIEW BASICS

  1. What types of employees are covered under 41 CFR part 60-4? 
  2. What good faith efforts are construction contractors required to take in order to increase the participation of minorities and women in the skilled trades?
  3. The regulations establish goals for the number of women and minorities that participate in each trade at the contractor’s workforce. If a contractor is meeting all of these participation goals for minorities and women, does that mean it is not engaging in any discrimination?
  4. What are promising practices for construction contractors to monitor and organize utilization hours?
  5. If a contractor fails to meet its participation goals, is it in violation of Executive Order 11246?
  6. Does a construction compliance review include a mandatory on-site?
  7. What applicant and hiring data should be included in the Section 503 and VEVRAA affirmative action programs, to comply with the data collection analysis requirements?
  8. What types of accommodation request records are federal contractors required to maintain?
  9. What materials does OFCCP provide to construction contractors to help them understand what they should provide specific to each legal authority (Executive Order 11246, Section 503 of the Rehabilitation Act, and VEVRAA) in response to the construction Scheduling Letter?

SCHEDULING

  1. What information sources does OFCCP use to identify direct federal and federally assisted construction contractors and subcontractors?
  2. How are construction contractors and subcontractors selected for compliance evaluations?
  3. Does OFCCP schedule construction contractors and subcontractors for compliance evaluations by establishment, project, or by specific areas?
  4. Does OFCCP consider the number of trade employees at a construction contractor or subcontractor when making scheduling decisions? 

SCHEDULING LETTER AND ITEMIZED LISTING

  1. Will contractors receive the Construction Scheduling Letter and Itemized Listing via mail, email or both? new
  2. The Construction Scheduling Letter encourages contractors to submit their information in an electronic format, but what if I do not maintain my records electronically? new
  3. Which employees should be included in my employment activity (applicants, hires, promotions, layoffs, recalls, and terminations) and payroll data submission in response to the Construction Scheduling Letter and Itemized Listing?
  4. Who should be considered a member of the “construction trades” for purposes of providing data for Items 2 and 3 in the Itemized Listing of the Construction Scheduling Letter?
  5. How should payroll data be organized for submission?
  6. Item #9 asks for records identifying trade organization affiliations and unions that provide workers for the company’s construction contracts. What if a contractor does not use unions or trade organizations to provide workers? new
  7. What information should contractors include in response to Item #16? new
  8. Item #17 asks for evidence that a contractor monitored personnel and employment-related activities to ensure certain practices did not have a discriminatory effect. What kind of evidence should contractors submit? new

APPLICATION OF LEGAL AUTHORITIES

1. When does Executive Order 11246 apply to federal construction contractors?

Executive Order 11246 applies to federal construction contractors that meet one or more of the following contract thresholds:

  1. A direct federal construction contract or subcontract of over $10,000.
  2. A federally assisted construction contract or subcontract of over $10,000.
  3. Two or more federal construction contracts or subcontracts of less than $10,000 that, when added together, total more than $10,000 within any 12-month period or can reasonably be expected to total more than $10,000 during that time.
  4. A construction contract or subcontract of over $10,000 with a federal nonconstruction contractor or subcontractor, if the construction contract/subcontract is necessary in whole or in part to the performance of the federal nonconstruction contract or subcontract or if the subcontractor performs, undertakes, or assumes any portion of the contractor’s obligation.

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2. When do Section 503 of the Rehabilitation Act of 1973 (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) apply to federal construction contractors?

Section 503 applies to federal construction contractors with a direct government contract of more than $15,000.

VEVRAA applies to federal construction contractors with a direct government contract of $150,000 or more.

Construction contractors and subcontractors whose sole coverage comes from federally assisted construction contracts are not covered by Section 503 and VEVRAA.

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3. What is the difference between a direct federal construction contract and a federally assisted construction contract?

A direct federal construction contract is an agreement or modification to an agreement entered into directly with the federal government through one of its agencies for the purchase, sale, or use of personal property or nonpersonal services, where the term “nonpersonal services” includes construction services. For example, a construction contract awarded by the General Services Administration to build a federal courthouse would constitute a direct federal construction contract.

A federally assisted construction contract is an agreement or modification paid for in whole or in part with funds obtained from the federal government but where the government is not a party to the construction contract. Federally assisted contracts could be funded through, for example, a federal grant, contract, loan, insurance, or guarantee. An example of a federally assisted construction contract could be a contract to build highways or bridges funded by federal grants to state Departments of Transportation.

Executive Order 11246 applies to both direct federal construction contracts and federally assisted construction contracts.

Section 503 and VEVRAA apply solely to direct federal construction contracts. Federally assisted construction contracts are exempt from both Section 503 and VEVRAA.

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4. Are federal construction contractors required to develop a written affirmative action program (AAP) under Executive Order 11246?

No, OFCCP does not require construction contractors to develop a written AAP under Executive Order 11246. Instead, OFCCP has established participation goals for minorities and women based on civilian labor force participation rates and has outlined in the regulations specific affirmative actions contractors must take in order to ensure equal employment opportunities. (41 CFR 60-4.3(a)7)

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5. Are direct federal contractors required to develop VEVRAA and/or Section 503 AAPs based upon the aggregate total of all construction trade and non-trade employees company-wide?

Contractors with 50 or more employees and a direct federal contract of $50,000 or more have AAP requirements under Section 503 (41 CFR Part 60-741, subpart C). For VEVRAA, contractors with 50 or more employees and a contract of $150,000 or more have AAP requirements (41 CFR Part 60-300, subpart C).

Page 33 of the Construction Contractors Technical Assistance Guide (TAG) instructs federal construction contractors to develop and maintain Section 503 and VEVRAA AAPs in one of the following two ways:

  • Option 1: Company-wide, provided that the AAP can be disaggregated by trade and geographic area so that the Section 503 utilization goal is reported by trade and geographic area.
  • Option 2: By geographic area, provided that employment records are collected at the project level by trade and aggregated for the geographic area.

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6. I have a construction contract only. Some of my employees do not work in construction trades. Are these employees covered under 41 CFR part 60-4?

The requirements set forth at 41 CFR part 60-4 apply to the workers who are engaged in on-site construction and functions incidental to the actual construction, such as supervision or inspection. The regulations define “construction work” and “site of construction” at 41 CFR 60-1.3.

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7. If a prime contractor has both a construction and a supply and service contract, which employees are covered under 41 CFR part 60-2 and which employees are covered under 41 CFR part 60-4?

A contractor’s obligation to comply with 41 CFR part 60-2 and/or 60-4 requirements will depend on the type of contract(s) it has. Executive Order 11246 defines “construction contract” as “any contract for the construction, rehabilitation, alteration, conversion, extension, or repair of buildings, highways, or other improvements to real property.” The regulations also define “construction work” and “site of construction” at 41 CFR 60-1.3. Supply and service contracts are nonconstruction contracts, as implicitly defined at 41 CFR 60-2.1.

If a contractor has a direct or federally assisted construction contract as set forth at 41 CFR part 60-4, the part 60-4 requirements apply to its workers who are engaged in on-site construction and functions incidental to the actual construction, such as supervision or inspection, at all worksites across the United States where its construction workers are located. The part 60-4 requirements also apply to those construction employees of covered construction contractors who work on nonfederal or nonfederally assisted construction sites. If the same contractor has a covered nonconstruction contract of $50,000 or more and at least 50 nonconstruction employees, that contractor must comply with the affirmative action obligations at 41 CFR part 60-2 at every establishment (or functional/business unit, as applicable) where those nonconstruction workers are located.

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8. If a contractor has a single contract that involves both construction and nonconstruction, which affirmative action obligations apply to the contract?

Consistent with applicable Federal Acquisition Regulations, a single contract, meeting applicable jurisdiction thresholds and including both construction work and nonconstruction (supply and service), must comply with the affirmative action obligations applicable to the predominant part of the work, or if the contract is divided into parts, the affirmative action obligations applicable to each portion.

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9. How can a contractor determine whether a contract involves both construction and supplies and services?

If questions arise about the type of contract, a prime contractor should consult with their contracting officer and a subcontractor should consult with the prime contractor.

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10. Where can a construction contractor find detailed information regarding obligations and compliance evaluations?

OFCCP’s website contains various compliance assistance materials for construction contractors, including a Construction Contractors Technical Assistance Guide, Small Federal Contractor Technical Assistance Guide, Posting and Notices Guide & Checklist, Recordkeeping Guides, and best practice suggestions. Additionally, the agency conducts compliance assistance webinars at national and local levels, and direct compliance assistance may be requested from local district offices.

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11. What is Executive Order 13496 and is it applicable to construction contracts?

Executive Order 13496, Notification of Employee Rights Under Federal Labor Laws, 74 FR 6407 (February 4, 2009), requires that federal contractors provide notice to their employees of their rights under federal labor laws. Specifically, Executive Order 13496 requires that covered contractors provide notice of employee rights under the National Labor Relations Act (NLRA), the law that governs relations between unions and employers in the private sector. The NLRA guarantees the right of employees to organize and to bargain collectively with their employers, to engage in other protected concerted activity with or without a union, or to refrain from all such activity.

Executive Order 13496 is applicable to non-exempt, covered construction contracts, as well as to supply and service contracts. Executive Order 13496’s requirements are the same for all contractors with covered contracts. However, Executive Order 13496 is not applicable to federally assisted construction contracts. (DIR 2010-01, Verification Procedures Under Executive Order 13496, Notification of Employee Rights under Federal Labor Laws, and the Department of Labor’s implementing regulations at 29 C.F.R. Part 471.)

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12. What are the physical posting and contract inclusion requirements of Executive Order 13496?

Contractors and subcontractors subject to Executive Order 13496 are required to post the Department of Labor notice informing their employees about their rights under federal labor laws. The size, form, and content of the notice are prescribed by the Secretary of Labor and cannot be altered by contractors. The poster and related information are located on the Office of Labor-Management Standards website at www.dol.gov/agencies/olms/poster/labor-rights-federal-contractors.

Additionally, all non-exempt federal contracts, subcontracts, and purchase orders must include a prescribed contract clause that sets out the text of the employee notice and outlines the contractor’s posting obligation. The employee notice clause can be incorporated by reference, rather than verbatim. To include the clause by reference, the contract or purchase order must cite to "29 CFR Part 471, Appendix A to Subpart A." Appendix A is available at Executive Order 13496: Notification of Employee Rights Under Federal Labor Laws.

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OFCCP CONSTRUCTION EVALUATION PROGRAM

1. What if the contractor’s geographic area does not have a minority participation goal because it was designated after 1980?

Although a geographic area may not have a minority participation goal, the 6.9 percent participation goal for women applies nationwide. Additionally, even absent minority goals, during a compliance review OFCCP will still evaluate a contractor’s good faith efforts to increase its representation of minorities and women as required by 41 CFR part 60-4.

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2. Are covered construction contractors and subcontractors required to comply with OFCCP-administered laws at all construction worksites?

Yes. Covered contractors and subcontractors must comply with these laws at all worksites, unless otherwise exempt. For example, a company with a federal construction contract in California must comply with OFCCP requirements at the California worksite where the federal contract work is being performed and at all the company’s worksites throughout the United States.

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3. Does OFCCP have a process for evaluating a construction contractor when a project has more than one place of performance? For example, an interstate paving project that encompasses multiple counties.

OFCCP schedules and evaluates construction contractors based on defined geographic areas (SMSAs and Non-SMSAs) published in the Federal Register. Many of these areas include a grouping of several counties or county equivalents. During a compliance evaluation, OFCCP may request records and other information related to any of the contractor’s construction projects located in the scheduled SMSA or Non-SMSA. If a project crosses county lines, such as a long stretch of interstate, OFCCP could request records related to the entire project, if each of those counties is in the defined geographic area. OFCCP’s Participation Goals for Minorities and Females defines the geographic areas the agency uses to schedule construction contractors.

In other circumstances, a large project may include work that crosses more than one SMSA or Non-SMSA. In this context, if the contractor is scheduled for a compliance evaluation, OFCCP will request records and other information associated with the project which occurred while employees are specifically working in the counties published for the scheduled geographic area (SMSA or Non-SMSA).

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INVESTIGATING DISCRIMINATION

1. What does OFCCP look for during a compliance evaluation in terms of discrimination?

OFCCP looks for evidence of disparate treatment and disparate impact discrimination.

Disparate treatment discrimination occurs when a contractor intentionally treats an individual or group differently on the basis of a prohibited factor (race, color, religion, sex, sexual orientation, gender identity, national origin, disability, status as a protected veteran, or protected disclosure of compensation information), and this treatment is not based on a legitimate nondiscriminatory reason. Examples of disparate treatment include a contractor assigning women applicants to only lower-paid, unskilled positions because of their gender.

Disparate impact discrimination occurs when a contractor’s use of a facially neutral policy or practice (e.g., a test, an interview, a degree requirement, a leave or hours policy) disqualifies members of a protected class at a substantially higher rate than others and is not justified by business necessity and job-relatedness (or it is justified by business necessity but there are less-discriminatory alternatives available that would meet the contractor’s need). The contractor does not have to intend for the practice to discriminate against certain groups for this to constitute unlawful discrimination. An example of disparate impact discrimination would be a lifting requirement that disproportionately disqualifies women from employment where it is not necessary for someone in the particular position being filled to lift items of that weight. Another example of disparate impact discrimination could be using a “word-of-mouth” recruitment process that results in disproportionately excluding certain racial or ethnic groups from consideration for job openings.

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2. Is harassment a form of discrimination that OFCCP looks for during a compliance evaluation?

Yes, harassment because of a protected basis, such as sex, race, ethnicity, sexual orientation, gender identity or disability can be a form of unlawful discrimination that OFCCP will investigate during a compliance evaluation. With respect to harassment, the conduct does not have to be of a sexual nature. Harassment can take the form of comments or conduct that creates an intimidating, hostile, or offensive work environment. Contractors are required to ensure that all forepersons, superintendents, and other on-site supervisory personnel are aware of and carry out the contractor’s obligation to maintain a non-hostile working environment free from harassment, intimidation, and coercion, including quid pro quo harassment where submission to unwelcome sexual advances or requests for sexual favors is made either explicitly or implicitly a term or condition of an individual’s employment or submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual.

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3. Are contractors permitted to use tests or other exams to select individuals for hire?

Yes. However, any test or other selection procedure that contractors use to select candidates for hire or to make job assignments or promotions cannot discriminate against those being considered. For example, if a contractor uses a mental ability (cognitive) test that results in a significantly lower percentage of minority candidates securing jobs as journey workers, the contractor must show that the test is necessary for the job in question. To that end, if a selection test or procedure has adverse impact on individuals in a particular race, sex, or ethnic group unless a validity study cannot or need not be performed for the reasons set forth at 41 CFR 60-3.6(B), the test or procedure must be validated to ensure that the qualification the selection procedure is designed to measure is job-related and consistent with business necessity. (For more information regarding validated selection procedures, see the Uniform Guidelines on Employee Selection Procedures and Uniform Guidelines Questions & Answers).

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4. Are construction contractors required to monitor their compensation policies and practices and personnel activity?

OFCCP’s regulation at 41 CFR 60-4.3(a)7.m requires construction contractors to continually monitor their personnel practices to ensure employees are not subject to discrimination. Personnel practices include actions taken by management related to decisions regarding their employees, for example, hiring, firing, layoff, promotion, transfer, demotion, compensation, salary increase, salary decrease, work assignments, and benefits. Contractors should also examine employee access to opportunities affecting compensation, such as higher-paying positions, job classifications, work assignments, training, preferred or higher-paid shift work, access to overtime hours, pay increases, and incentive compensation. The Construction Contractors Technical Assistance Guide, on page 30, provides contractors with promising practices they may use to assist with demonstrating compliance. For example:

  • Contractors should audit or examine existing personnel practices periodically to ensure that EEO obligations are being adequately addressed and incorporated in personnel practices.
  • Contractors should ensure current policies are reviewed regularly to identify any policies that are not equally applied.
  • Additionally, OFCCP’s regulation at 41 CFR 60-4.3(a)7.k requires the contractor to validate all tests and other selection requirements where there is an obligation to do so under 41 CFR part 60-3 (Uniform Guidelines on Employee Selection Procedures (1978). This requirement is described on page 29 of the Construction Contractors Technical Assistance Guide.
  • Contractors with fewer than 100 employees should collect data to determine if any selection procedure used has a possible adverse impact on any race, sex, or ethnic group. These contractors should maintain and have available records showing the following information for each year:
    • The number of persons hired, promoted, and terminated in each trade, for example, carpenters, brick masons, concrete finishers, ironworkers, mechanics, and equipment operators, by sex and, where appropriate, by race and national origin.
    • The number of applicants for hire and promotion by sex and, where appropriate, by race and national origin.
    • The selection procedures used, such as standardized testing or unstructured interviews and qualifications review.
  • OFCCP’s regulation at 41 CFR 60-4.3(a)7.c requires construction contractors to maintain a current file of the names, addresses, and telephone numbers of each minority and female off-the-street applicant and minority or female referral from a union, a recruitment source, or community organization and of what action was taken concerning each individual. This requirement is described on page 23 of the Construction Contractors Technical Assistance Guide. As a promising practice, contractors should establish standard personnel procedures that require creation and retention of records that show the name, address, telephone number, sex, race, ethnicity, trade, source of referral, and action taken concerning each applicant.
  • Contractors with 100 or more employees should maintain the records listed above. Additionally, they should maintain records for each job to show whether the total selection process for each job has an adverse impact on either sex or on any of the races and ethnic groups specified in OFCCP regulations or in the EEO-1 Report. For information on how to conduct an adverse impact analysis, see Appendix L of the Construction Contractors Technical Assistance Guide.
  • Contractors should perform adverse impact analyses at least once a year for each group that constitutes at least two percent of the labor force in the relevant area or two percent of the applicable workforce.
  • Where a total selection process for a job has an adverse impact, the contractor should maintain and have available records showing which components of the selection process have an adverse impact.
  • Records regarding individual components of the selection process should be collected for at least two years after the adverse impact has been eliminated in the total selection process for a particular job.
  • Contractors must validate selection procedures that have an adverse impact on any race, sex, or ethnic group in accordance with the Uniform Guidelines on Employee Selection Procedures.

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5. If employees or applicants experience discrimination while working for or applying to work for a federal or federally assisted construction contractor or subcontractor, what can they do?

If employees or applicants believe they have been discriminated against on the basis of a protected category, they can file a complaint with OFCCP, the Equal Employment Opportunity Commission, or a state or local civil rights agency with jurisdiction. Additionally, if they are enrolled in an apprenticeship program that is registered with the U.S. Department of Labor, they can also file a complaint with the Registration Agency with which the apprenticeship program is registered. The Registration Agency may refer a complaint to OFCCP or to another enforcement agency, as appropriate.

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OFCCP COMPLIANCE REVIEW BASICS

1. What types of employees are covered under 41 CFR part 60-4?

The requirements set forth at 41 CFR part 60-4 apply to the workers who are engaged in on-site construction and functions incidental to the actual construction, for example, supervisors, inspectors, and forepersons. The regulations define “construction work” and “site of construction” at 41 CFR 60-1.3.

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2. What good faith efforts are construction contractors required to take in order to increase the participation of minorities and women in the skilled trades?

The regulations at 41 CFR 60-4.3(a)7 enumerate the good faith efforts construction contractors must take in order to increase the participation of minorities and women in the skilled trades. These good faith efforts include but are not limited to, maintaining a harassment-free work environment, recruiting minorities and women, developing on-the-job training opportunities for minorities and women, developing and disseminating EEO policies, evaluating minorities and women for promotional opportunities, and monitoring personnel practices for unintended discriminatory effects. Construction contractors must document their good faith efforts fully, which consist of the actions and steps that they take to ensure the requirements found in 41 CFR 60-4.3(a)7 are met.

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3. The regulations establish goals for the number of women and minorities that participate in each trade at the contractor’s workforce. If a contractor is meeting all of these participation goals for minorities and women, does that mean it is not engaging in any discrimination?

Not necessarily. The participation goals for minorities and women are an important aspect of recruiting and developing a more diverse workforce. Contractors that meet these goals still need to assess their practices for possible employment discrimination. For example, if a contractor’s workforce is 90% Hispanic, that contractor would likely be satisfying its goal for minority participation, but other groups of workers – such as Black /African Americans or Asian Americans – may be experiencing discrimination. While the participation goal applies to minorities in the aggregate, OFCCP reviews the nondiscrimination obligation by examining how each minority group is specifically affected by a contractor’s practices in determining whether or not there is employment discrimination.

Another example would be a contractor that meets its participation goal for women, but denies those women equal access to training or assignments, pays those women less than men in similar positions, subjects women to harassment, or steers those women into lower-paying jobs because of their sex. Such actions constitute discrimination in violation of Executive Order 11246 even if the participation goal is being met.

Additionally, Executive Order 11246 prohibits discrimination on additional grounds, such as sexual orientation, gender identity, religion, and on the basis of inquiring about, discussing, disclosing pay. Furthermore, Section 503 and VEVRAA prohibit federal contractors from discriminating on the basis of disability and protected veteran status, respectively, if they hold a direct federal construction contract. Whether a contractor is meeting its participation goals for women and minorities has no bearing on whether it is engaging in discrimination on these other bases.

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4. What are promising practices for construction contractors to monitor and organize utilization hours?

As a promising practice, construction contractors may be better equipped to measure and monitor the effectiveness of their affirmative action efforts by maintaining records, including utilization and payroll records, in an electronic format that is compatible with Microsoft Excel.

The construction utilization hours goals under Executive Order 11246 are minimum targets for the participation of women and minorities in contractors’ construction work. Contractors should use these goals as yardsticks to measure the effectiveness of their affirmative action efforts by comparing the actual percentage of hours worked by women or minorities to the goal percentage of hours worked. A contractor’s compliance is measured by whether it has made good faith efforts to meet its goals and failure to meet goals, by itself, is not a violation of Executive Order 11246. Page 19 of OFCCP’s Construction Contractors Technical Assistance Guide notes a few rules about how to use the goals:

  • Maintain hours worked at all sites by construction trade 
    Contractors must keep records of hours worked, by construction trade, for all construction sites in every geographical area where work is being performed.
  • Calculate actual participation, by trade 
    Contractors must calculate the actual percentages for the participation of women and minorities, by trade, using the hours worked at every construction site in each geographical area to determine if they met the established goals for that area. Contractors must count hours at all construction sites in the area, regardless of whether the sites are for federal, federally assisted, or nonfederal work.
  • Compare actual participation to established goals in every geographical area, by trade 
    Contractors must compare actual participation, by trade, to the established goals for women and minorities in every geographical area where it performs construction work, regardless of whether the work is federal, federally assisted, or nonfederal.

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5. If a contractor fails to meet its participation goals, is it in violation of Executive Order 11246?

Not necessarily. Contractors must engage in outreach and other good-faith efforts to broaden the pool of qualified candidates to include minorities and women. Good faith efforts include, for example, monitoring the effectiveness of outreach and recruitment strategies in attracting diverse applicants and linking with different or additional referral sources in the event that recruitment efforts fail to produce a diverse pipeline of applicants.

The participation goals are not quotas, and no sanctions are imposed solely for failure to meet them. A contractor’s compliance is measured by whether it has made good faith efforts to expand its employment opportunities and break down barriers to employment for minorities and women.

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6. Does a construction compliance review include a mandatory on-site?

Construction compliance reviews may close with or without an on-site investigation. During the desk audit phase of the construction compliance review, OFCCP utilizes the contractor’s documentation of compliance as the basis for determining whether to conduct an on-site investigation. OFCCP may conduct an on-site investigation based on indicators of potential discrimination or other potential compliance issues.

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7. What applicant and hiring data should be included in the Section 503 and VEVRAA affirmative action programs, to comply with the data collection analysis requirements?

OFCCP’s construction Scheduling Letter and Itemized Listing outlines the specific data contractors must provide regarding their Section 503 and VEVRAA obligations during a compliance review. The construction Scheduling Letter and Itemized Listing can be found at https://www.reginfo.gov/public/do/PRAViewIC?ref_nbr=202211-1250-001&icID=246722. Contractors can also find the specific data collection analysis AAP requirements outlined in sections of the Section 503 and VEVRAA regulations at 41 CFR 60-741.44(k) and 41 CFR 60-300.44(k), respectively.

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8. What types of accommodation request records are federal contractors required to maintain?

All covered construction contractors are required to maintain records of accommodation requests related to pregnancy, childbirth, or related medical conditions and religious practices and observances. In addition, direct federal construction contractors are required to maintain records of accommodation requests related to disabilities, including requests from disabled veterans.

Specifically, contractors should maintain documentation on requests made, any relevant meetings and discussions held, and final dispositions. OFCCP regulations require contractors to grant reasonable accommodation requests unless they can demonstrate that doing so would impose an "undue hardship" on the operation of its business.

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9. What materials does OFCCP provide to construction contractors to help them understand what they should provide specific to each legal authority (Executive Order 11246, Section 503 of the Rehabilitation Act, and VEVRAA) in response to the construction Scheduling Letter?

OFCCP’s construction Scheduling Letter and Itemized Listing requests information necessary to verify contractor’s obligations pursuant to Executive Order 11246, Section 503, and VEVRAA. These legal authorities contain different regulatory requirements and, as such, OFCCP has different programs for each. If contractors are unclear on what they must submit, they may consult OFCCP’s various compliance assistance materials such as OFCCP’s website for construction contractors, the Construction Compliance FAQs, OFCCP’s Contractor Compliance Institute (CCI) course for construction contractors, OFCCP’s public webinar on construction, and the agency’s Construction Contractors Technical Assistance Guide. Construction contractors who would like individual technical assistance can also contact their local OFCCP office or the point of contact listed on their letter.

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SCHEDULING

1. What information sources does OFCCP use to identify direct federal and federally assisted construction contractors and subcontractors?

OFCCP uses USAspending.gov, a publicly-available information system administered by the U.S. General Services Administration (GSA), to download federal contract and subcontract data. Federally assisted contract data are provided by the U.S. Department of Transportation.

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2. How are construction contractors and subcontractors selected for compliance evaluations?

Periodically, OFCCP’s Division of Program Operations develops lists of construction contractors and subcontractors for compliance evaluations. These lists are developed using neutral selection procedures. The methodology used to develop current lists can be found on OFCCP's Methodologies page. OFCCP also issues Corporate Scheduling Announcement Lists to provide advance courtesy notification to contractors selected for a compliance evaluation. These lists can be found on the OFCCP Scheduling List Resources page.

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3. Does OFCCP schedule construction contractors and subcontractors for compliance evaluations by establishment, project, or by specific areas?

OFCCP schedules construction contractors and subcontractors using the geographic areas published in the Federal Register and established by the U.S. Department of Commerce’s Bureau of Economic Analysis. OFCCP has published a list of these areas in Appendix P of the Construction Contractors Technical Assistance Guide to assist contractors.

OFCCP’s construction program has two geographic area categories, Standard Metropolitan Statistical Areas (SMSAs) and Non-Standard Metropolitan Statistical Areas (Non-SMSAs). Within each SMSA or Non-SMSA, there is a list of county(s) or county equivalent(s) that make up the geographic area. When OFCCP evaluates construction contractors and subcontractors, it looks at all of the contractor’s federal, federally assisted, and non-federal construction projects located across all county(s) or county equivalent(s) in the scheduled geographic area.

As a note, after OFCCP published its goals, SMSAs were realigned into Metropolitan Statistical Areas for use in a subsequent census. However, the geographical areas for OFCCP construction goals continue to be expressed as SMSAs and non-SMSAs.

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4. Does OFCCP consider the number of trade employees at a construction contractor or subcontractor when making scheduling decisions?

OFCCP does not have prior information about the number of trade employees of a construction company. In addition, most construction workers are not permanent employees and are hired based on the project at hand. OFCCP expects that all of its methodology considerations will allow the agency to focus activity where it can make the biggest impact toward ensuring compliance with equal employment opportunity requirements.

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SCHEDULING LETTER AND ITEMIZED LISTING

1. Will contractors receive the Construction Scheduling Letter and Itemized Listing via mail, email or both?

OFCCP may send the Construction Scheduling Letter and Itemized Listing by mail, with a return receipt requested, or email, with a read receipt requested. Email allows OFCCP to provide faster delivery and confirmation of receipt, promoting the timely exchange of information. Contractors will not receive a hard copy of the Construction Scheduling Letter and Itemized Listing in addition to the emailed letter. The emailed Construction Scheduling Letter and Itemized Listing is the official notification.

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2. The Construction Scheduling Letter encourages contractors to submit their information in an electronic format, but what if I do not maintain my records electronically?

Contractors may maintain paper or electronic records. Regardless of how they are preserved, the records must be accessible to OFCCP during a compliance review or complaint investigation (readily available for review and in the form or format the contractor maintains the records including electronic formats and is readable and capable of being copied by OFCCP).

To increase efficiency, OFCCP encourages contractors to submit their AAPs and Itemized Listing information electronically using the methods noted in the Construction Scheduling Letter. Specific to employment activity, OFCCP requests contractors to submit their data in an electronic database that is readable and in comma-separated values (.csv) or Excel (.xls and .xlsx) format. Contractors also have the option to submit the information in hard copy form by mail or other delivery service. Additional information about which contractors are required to submit AAPs can be found in #4 and #5 of the Application of Legal Authorities section of these FAQs.

OFCCP’s regulations at 41 CFR 60-741.81 and 41 CFR 60-300.81 require that, upon request, contractors covered by Section 503 of the Rehabilitation Act of 1973 (Section 503) or the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) must provide OFCCP information about all formats, including specific electronic formats, in which the contractor maintains its records and other information. The contractor must provide records and other information in any of the formats in which they are maintained, as selected by OFCCP.

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3. Which employees should be included in my employment activity (applicants, hires, promotions, layoffs, recalls, and terminations) and payroll data submission in response to the Construction Scheduling Letter and Itemized Listing?

The employment activity and payroll data must include information on all employees covered under 41 CFR 60-4, including all workers who are engaged in on-site construction and functions incidental to the actual construction, for example, supervisors, inspectors, and forepersons.

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4. Who should be considered a member of the “construction trades” for purposes of providing data for Items 2 and 3 in the Itemized Listing of the Construction Scheduling Letter?

Items 2 and 3 apply to workers who are engaged in on-site construction and functions incidental to the actual construction, for example, supervisors, inspectors, and forepersons. The regulations define “construction work” and “site of construction” at 41 CFR part 60-1.3.

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5. How should payroll data be organized for submission?

Payroll data must be submitted for each project that the contractor has identified (by name and location). The data should therefore be separated for each individual project included on that list.

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6. Item #9 asks for records identifying trade organization affiliations and unions that provide workers for the company’s construction contracts. What if a contractor does not use unions or trade organizations to provide workers?

Contractors should explicitly state in their response to the Construction Scheduling Letter that the company does not use union or trade organizations to provide workers.

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7. What information should contractors include in response to Item #16?

As noted in the Investigating Discrimination section of these FAQs, contractors are permitted to use tests or exams in their selection process. In response to Item #16, contractors must identify all tests and selection procedures and when they use them to recruit, screen, and hire. This includes the use of technology-based selection procedures, such as those using artificial intelligence, algorithms, and automated systems, as well as non-technology-based selection procedures, such as written tests, work simulations, and structured interview questions. The contractor’s response must also include the same information and documentation related to all third-party recruiting, screening, and/or hiring products and services. In addition, contractors should submit documentation of the validation of these tests and selection procedures, if applicable. Additional information on validation of employee selection procedures can be found in these FAQs. For more information on technology-based selection procedures, refer to OFCCP’s guide for federal contractors on Artificial Intelligence and Equal Employment Opportunity.

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8. Item #17 asks for evidence that a contractor monitored personnel and employment-related activities to ensure certain practices did not have a discriminatory effect. What kind of evidence should contractors submit?

Contractors must continually monitor their personnel and employment-related activities during the preceding year to ensure that seniority practices, job classifications, work assignments and other personnel practices did not have a discriminatory effect. Contractors must also ensure their EEO policy is in place and affirmative action obligations are met. Contractors can provide documentation that their activities are monitored in numerous ways. Examples include, but are not limited to, meeting notes, statistical analysis (including impact-ratio analyses), and reports describing or notes relating to the regular review of workplace policies and procedures.

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The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.

Last updated on October 1, 2024