GOOD NEWS FOR VETERANS-New Regulations Promote Hiring of Veterans and Individuals with Disabilities.

On August 27, 2013, the Office of Federal Contract Compliance Programs ("OFCCP") released its Final Rules under the Vietnam Era Veterans' Readjustment Assistance Act, as amended ("VEVRAA") and Section 503 of the Rehabilitation Act of 1973, as amended ("Section 503"). These Final Rules are expected to substantially impact federal contractor compliance obligations under VEVRAA and Section 503 by imposing significant new reporting, records management, administrative and affirmative action obligations on contractors.

The VEVRAA Rule will require federal contractors to adopt a benchmark for hiring veterans which is to be based on the national percentage of veterans in the workforce. (that number is currently 8%) In the alternative they can set their own benchmark based on the best available data.  The rule also clarifies job listing and subcontract requirements.

The SECTION 503 Rule sets an aspirational goal for federal contractors and subcontractors that 7% of each job group in their workforce be qualified individuals with disabilities.  While the rule doesn't establish a quota, it does require contractors to take specific actions in the areas of recruitment, training, record keeping, and policy dissemination similar to those previously required to promote workplace equality for women and minorities. 

Final Rules-Just the Highlights:

VEVRAA (Veterans Regulations)

1. Establishes hiring benchmarks for the first time for protected veterans;

2. Requires that contractors permit OFCCP on-site or off-site access to documents for compliance and focused reviews, and permits OFCCP to extend the temporal scope of compliance evaluations beyond the current plan year;

3. Requires that contractors invite applicants for employment to self-identify, both pre-offer and post-offer, as veterans protected under VEVRAA;

4. Establishes additional "invitation to self-identify" requirements, including requiring self-identification at the time of hire and every five years; and

5. Clarifies contractors' employment service delivery systems ("ESDS") obligations.

Section 503

1. Establishes an aspirational seven (7) percent utilization goal per "job group," except for contractors with less than 100 employees, for qualified individuals with disabilities;

2. Requires that contractors invite applicants for employment to self-identify, both pre-offer and post-offer, as individuals with disabilities protected under Section 503;

3. Provides best practices guidance concerning "reasonable accommodations" for qualified applicants and employees with disabilities;

4. Requires that contractors permit OFCCP on-site or off-site access to documents for compliance and focused reviews, and permits OFCCP to extend the temporal scope of compliance evaluations beyond the current plan year; and

5. Aligns the definition of "disability" and the other nondiscrimination provisions of Section 503 Regulations with the Americans with Disabilities Act Amendments Act of 2008 ("ADAAA").

EFFECTIVE DATE

The Final Rules will take effect 180 days after their publication in the Federal Register. Contractors are not required to amend affirmative action plans ("AAPs") that are in place on the effective date of the Final Rules. However, contractors must ensure that AAPs prepared after the effective date comply with the Final Rules.