The U.S. Department of Labor's Office of Federal Contract Compliance Programs has released an update to the process by which federal supply and service contractors can apply for Functional Affirmative Action Program agreements. Full details of new directive can be viewed here.

Section 503 of Executive Order 11246 provides that government contractors with 50 or more employees and a federal contract of $50,000 or more are required to develop a written affirmative action program for each of its establishments. Significant changes were made by OFCCP, including requiring written approval by the agency's director before contractors can begin developing FAAP agreements eliminatingthe provision for automatic approval if OFCCP failed to act upon the request within 120 days; changing the expiration date for each agreement from three to five years, at which point a renewal must be approved; and adding the possibility of a compliance evaluation by OFCCP should contractors fail to submit the required annual updates to their agreements.

All contractors with current FAAP approved agreements will be required to renew them in line with the new guidance.

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