Under OFCCP’s regulations, a contractor must maintain an affirmative action program (AAP) for each of its establishments and include all of its employees in an AAP. Generally, OFCCP considers an establishment to be a physical location, such as a factory or office. However, some contractors with campus-like settings may have multiple buildings that constitute an establishment for purposes of developing and maintaining their AAPs. These types of contractors could include educational institutions, hospitals, and information technology companies, among others. The following frequently asked questions intend to help contractors with campus-like settings determine whether to maintain one or multiple AAPs to cover the employees on a campus.
- How does OFCCP define "establishment"?
- Can a contractor count multiple buildings as one establishment when developing and implementing an AAP for a campus-like setting?
- Can a contractor implement more than one AAP for a campus-like setting?
- What factors should be considered when determining whether multiple buildings can be under one establishment-based AAP?
- Where should the contractor explain that an AAP covers multiple buildings?
- What are some examples for when to use the different grouping options?
How does OFCCP define "establishment"?
OFCCP defines the term "establishment" in the Federal Contract Compliance Manual (FCCM) as:
A facility or unit that produces goods or services, such as a factory, office store, or mine. In most instances, the unit is a physically separate facility at a single location. In appropriate circumstances, OFCCP may consider as an establishment several facilities located at two or more sites when the facilities are in the same labor market or recruiting area. The determination as to whether it is appropriate to group facilities as a single establishment will be made by OFCCP on a case-by-case basis.
Can a contractor count multiple buildings as one establishment when developing and implementing an AAP for a campus-like setting?
In general, yes, contractors may group employees located across several buildings on a campus under one establishment-based AAP. However, determination of what constitutes an "establishment" requires contractors to consider several factors in analyzing the extent to which the operations of various buildings are distinct or interconnected.
Can a contractor implement more than one AAP for a campus-like setting?
In general, yes, contractors may determine that employees located across several buildings on a campus are operationally distinct and should be included in separate AAPs. Again, determination of what constitutes an "establishment" requires contractors to consider several factors in analyzing the extent to which the operations of various buildings are distinct or interconnected.
What factors should be considered when determining whether multiple buildings can be under one establishment-based AAP?
Contractors should consider the factors that OFCCP uses to determine the appropriate AAP structure, such as:
- What is the function of the building, and how do the employees in the building interact with employees in other buildings?
- Are employees across different buildings part of the same organizational unit, such as department, division, section, branch, group, job family, or project team?
- Are the hiring, compensation, and other personnel decisions handled separately at each building or are those functions consolidated across the entire contractor or across multiple buildings on one campus?
- Does each building handle its own recruitment or is that function consolidated across multiple buildings?
- Do the buildings recruit from the same labor market or recruiting area?
- To what extent are other human resources and Equal Employment Opportunity compliance functions operationally distinct for each building or group of buildings?
- To what extent are other human resources and Equal Employment Opportunity compliance functions operationally distinct for each building or group of buildings?
Where should the contractor explain that an AAP covers multiple buildings?
Contractors should annotate all the buildings covered by the AAP in the organizational profile component of the AAP. The organizational profile provides an overview of the workforce included in the AAP, by organizational unit. OFCCP’s regulations at 41 CFR 60-2.11 describe the organizational profile requirements in full.
What are some examples for when to use the different grouping options?
Determining how to establish AAPs for a campus-like setting is case-specific and fact-dependent based on the factors outlined above. Generally speaking, the more operationally intertwined the units are, the more appropriate it becomes to group them into a single AAP. Conversely, the more operationally distinct the units are, the more appropriate it becomes to develop separate AAPs.
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 September 5, 2019