Frequently Asked Questions
Functional Affirmative Action Plans
If you are exploring functional affirmative action programs or plans (FAAPs) for your organization, you may have questions about the differences between FAAPs and establishment-based affirmative action plans (AAPs). DCI has put together a list of commonly asked questions about the FAAP development process. If you have other questions or need assistance, reach out today!
What is a functional affirmative action program?
A functional affirmative action program (also known as a functional affirmative action plan or FAAP) is a type of affirmative action program that is based on a function or business unit rather than a building or location.
When can my organization transition to a FAAP?
A request to start using FAAPs must be received by OFCCP at least 120 days prior to the expiration of your organization’s current AAPs.
What is an establishment-based affirmative action program?
Affirmative action programs (affirmative action plans or AAPs) have traditionally been prepared by building or location. The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) requires organizations to have separate AAPs for each “establishment” of 50 or more employees. OFCCP defines an “establishment” as a “facility or unit that produces goods or services, such as a factory, office, store, or mine.”
How are functional affirmative action programs structured?
A FAAP is structured according to an organization’s function or business line. An organization may have functions such as a finance function, a sales function, or a purchasing function. Likewise, an organization may have business lines such as a software development business line, a large vehicles business line, or an accounting and audit business line. Functions and business lines depend on how an organization operates and how reporting lines are established.
What happens if I want to have a mix of FAAPs and establishment-based AAPs?
OFCCP permits (and may at times encourage) using a combination of FAAPs and establishment-based AAPs. If your organization has self-contained facilities such as manufacturing plants or branch locations along with functional units such as a product development and technology functions, your organization could request to use both establishment-based and functional affirmative action plans.
Can my functional affirmative action programs undergo a compliance evaluation?
Yes. OFCCP compliance evaluations of functional affirmative action programs are much like reviews of establishment-based AAPs. OFCCP examines functional AAPs to ensure that all required components are present and examines summaries of personnel activity data to determine whether there are any disparities. It is important to note that OFCCP no longer requires that organizations with FAAP agreements automatically undergo evaluation on a periodic basis.
Do I need approval if my organization wants to prepare functional affirmative action programs?
Yes. OFCCP requires that organizations seeking to use FAAPs rather than establishment-based AAPs must get approval from the agency to do so.
How quickly can I get a functional affirmative action program agreement in place?
The process can take several months. However, OFCCP currently wants organizations to move to FAAPs and thus the agency is trying to expedite the approval of FAAP agreements.
How do I get approval to use functional affirmative action programs?
OFCCP has a directive that describes the submission process for functional affirmative action program agreement approval. Directive 2013-01 describes the information that must be submitted to OFCCP for a FAAP agreement. Your organization must describe each proposed function or business unit that will have a FAAP, including: the number of employees and locations associated with the FAAP, the relationship of each proposed function or business unit within your organization’s reporting structure, and contact information for the managing official of each function or business unit. Your organization must also describe how data will be collected and evaluated so that effective FAAPs can be produced. Finally, your organization must present a statement outlining plans for the transition to FAAPs, proposed dates of the plan year, and copies of personnel policies related to each business unit or function. Additional details about establishment location are required if your organization also intends to use establishment AAPs.
Can I use functional affirmative action programs if our data has no way to differentiate our various functions or business units?
No. Your organization must be able to produce statistical reports by function or business unit if it intends to prepare functional affirmative action programs.
