Certain Financial Institutions Covered by FDIC or NCUA Must Certify Affirmative Action Plans by June 29, 2023
The Office of Federal Contract Compliance Programs (OFCCP) is the federal agency within the Department of Labor that monitors and enforces compliance with federal anti-discrimination law by “federal contractors.” Among other things, the OFCCP oversees affirmative action requirements, with which certain financial institutions are required to comply.
Generally, those requirements relate to the following three laws:
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- Executive Order 11246 governs women and minorities.
- Section 503 of the Rehabilitation Act governs individuals with disabilities.
- The Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA) governs certain veterans.
Banks covered by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Association (NCUA) with at least 50 employees are subject to the rules established by these laws. And according to the OFCCP’s Jurisdiction Frequently Asked Questions, financial institutions covered by the FDIC or NCUA are considered federal contractors under the applicable rules.
The OFCCP recently announced the opening of the OFCCP Contractor Portal for the second annual certification cycle. The portal is open from March 31 through June 29. During this time, federal contractors must certify their compliance with the applicable affirmative action requirements. Specifically, existing contractors are required to certify that they have developed and maintained affirmative action plans in accordance with the applicable rules. (Existing contractors who did not certify last year are required to register, and if not done previously, certify compliance.)
Given recent developments in the banking industry, financial institutions will likely be subject to more scrutiny. Now is the time to determine whether your organization is in compliance with the applicable requirements.
Please contact Karleen Green or any member of the Phelps Labor and Employment team if you have questions or need advice or guidance.
