Surety Bond Quarterly - Fall 2016 - 20


Feature

Affirmative

Action and the Office of Federal
Contract Compliance Programs:
What Surety
Professionals and
Their Contractors
Should Know
WHILE CONSTRUCTION CONTRACTORS
are no doubt aware of their legal obligation to not engage in discriminatory employment practices, few are
aware that they may bear specific
obligations to proactively encourage
the hiring of members of historically
disadvantaged groups. Under the
current Presidential administration,
equal employment opportunity has
become a signature issue, leading
to more aggressive enforcement
of legal obligations imposed on
federal prime contracts, subcontracts, and certain state and local
contracts as well. Construction contractors that do not currently engage
in proactive employment policies
should familiarize themselves with
these requirements, lest they find
themselves the target of the government's next investigation and
enforcement efforts.
Set forth below is a discussion of
select equal employment opportunity
requirements imposed on federal contractors, with a focus on the broad
reach of the agency charged with
enforcing these requirements, the

20

SURETY BOND QUARTERLY | FALL 2016

BY W. BARRON A. AVERY AND WILLIAM B. O'REILLY

Office of Federal Contract Compliance
Programs (OFCCP); two case studies
of how OFCCP's increasingly aggressive enforcement tactics pose new
business risks to construction contractors; and conclusions for surety
professionals and their contractors.

A

Equal employment opportunity
programs are a priority for the
federal government
Through a patchwork of laws,
regulations, and Executive Orders,
the United States government has
developed a policy of promoting
equal employment opportunity
for women, minorities, individuals
with disabilities, and certain veterans. These policies go beyond
merely prohibiting discriminatory
hiring and employment practices
that harm members of these protected classes and impose obligations on contractors meeting
certain dollar thresholds to take
proactive measures to promote
equal employment opportunity.
While the exact requirements
vary depending on the value of a

business's federal contracts and
the protected class under consideration, the general requirements are similar for virtually all
contractors. In general, contractors must: (i) not discriminate; (ii)
conspicuously display posters prescribed by OFCCP; (iii) maintain
records of their hiring practices;
and (iv) file annual reports with
the Department of Labor. These
requirements are deceptively
simple, as OFCCP investigates not
only overt discrimination, but also
so-called "disparate impact" discrimination in which a contractor's
hiring policies disproportionately
and unnecessarily disadvantage
members of a protected class.
Additionally, some of the unique
characteristics of the construction
industry-such as changing job
sites and reliance on short-term
laborers-can further complicate
compliance. Consequences of
non-compliance can include contract cancellation, suspension and
debarment from receiving future
federal contracts, and financial



Table of Contents for the Digital Edition of Surety Bond Quarterly - Fall 2016

NASBP Upcoming Meetings & Events
2016-2017 Executive Committee
From the CEO: Success Comes with Sharing Perspective and Knowledge
Practical Insights: A Contractor’s Risk Management Portfolio Should Include a Commercial Crime Policy
Rethinking the Change Order Process: NECA Foundation’s Guidelines Offer New Approach, Substantially Reducing Change Order Costs
Six Considerations in Underwriting Subdivision Bonds (Part 2 of 2)
Affirmative Action and the Office of Federal Contract Compliance Programs: What Surety Professionals and Their Contractors Should Know
Surety Data Standards: What are They, and Why Should Surety Professionals Care about Them?
2016 NASBP Resource Directory
Index to Advertisers
Surety Bond Quarterly - Fall 2016 - cover1
Surety Bond Quarterly - Fall 2016 - cover2
Surety Bond Quarterly - Fall 2016 - 3
Surety Bond Quarterly - Fall 2016 - 4
Surety Bond Quarterly - Fall 2016 - 5
Surety Bond Quarterly - Fall 2016 - 6
Surety Bond Quarterly - Fall 2016 - 2016-2017 Executive Committee
Surety Bond Quarterly - Fall 2016 - From the CEO: Success Comes with Sharing Perspective and Knowledge
Surety Bond Quarterly - Fall 2016 - 9
Surety Bond Quarterly - Fall 2016 - Practical Insights: A Contractor’s Risk Management Portfolio Should Include a Commercial Crime Policy
Surety Bond Quarterly - Fall 2016 - 11
Surety Bond Quarterly - Fall 2016 - 12
Surety Bond Quarterly - Fall 2016 - 13
Surety Bond Quarterly - Fall 2016 - Rethinking the Change Order Process: NECA Foundation’s Guidelines Offer New Approach, Substantially Reducing Change Order Costs
Surety Bond Quarterly - Fall 2016 - 15
Surety Bond Quarterly - Fall 2016 - 16
Surety Bond Quarterly - Fall 2016 - Six Considerations in Underwriting Subdivision Bonds (Part 2 of 2)
Surety Bond Quarterly - Fall 2016 - 18
Surety Bond Quarterly - Fall 2016 - 19
Surety Bond Quarterly - Fall 2016 - Affirmative Action and the Office of Federal Contract Compliance Programs: What Surety Professionals and Their Contractors Should Know
Surety Bond Quarterly - Fall 2016 - 21
Surety Bond Quarterly - Fall 2016 - 22
Surety Bond Quarterly - Fall 2016 - 23
Surety Bond Quarterly - Fall 2016 - Surety Data Standards: What are They, and Why Should Surety Professionals Care about Them?
Surety Bond Quarterly - Fall 2016 - 25
Surety Bond Quarterly - Fall 2016 - 26
Surety Bond Quarterly - Fall 2016 - 2016 NASBP Resource Directory
Surety Bond Quarterly - Fall 2016 - 28
Surety Bond Quarterly - Fall 2016 - 29
Surety Bond Quarterly - Fall 2016 - 30
Surety Bond Quarterly - Fall 2016 - 31
Surety Bond Quarterly - Fall 2016 - 32
Surety Bond Quarterly - Fall 2016 - 33
Surety Bond Quarterly - Fall 2016 - 34
Surety Bond Quarterly - Fall 2016 - 35
Surety Bond Quarterly - Fall 2016 - 36
Surety Bond Quarterly - Fall 2016 - 37
Surety Bond Quarterly - Fall 2016 - 38
Surety Bond Quarterly - Fall 2016 - 39
Surety Bond Quarterly - Fall 2016 - 40
Surety Bond Quarterly - Fall 2016 - 41
Surety Bond Quarterly - Fall 2016 - Index to Advertisers
Surety Bond Quarterly - Fall 2016 - cover3
Surety Bond Quarterly - Fall 2016 - cover4
Surety Bond Quarterly - Fall 2016 - outsert1
Surety Bond Quarterly - Fall 2016 - outsert2
Surety Bond Quarterly - Fall 2016 - outsert3
Surety Bond Quarterly - Fall 2016 - outsert4
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