In response to the Labor Department's Office of Federal Contract Compliance Programs (OFCCP) proposed major changes to the rules governing federal contractor affirmative action programs (AAP) for covered veterans ("Section 4212") and individuals with disabilities ("Section 503"), AGC has completed an analysis of the rule’s true financial and administrative burden for federal construction contractors.
OFCCP's existing Section 4212 and Section 503 regulations emphasize contractor good-faith efforts to recruit, select, retain and develop qualified veterans and individuals with disabilities, and neither of these regulatory programs has ever required numerical goals or benchmarks. The rules will now include numerical benchmarks, a 7 percent hiring goal for these classes of workers, along with numerous recordkeeping requirements.
AGC’s analysis shows the proposed new hiring quota for the disabled would cost employers 30 times more than officials predict while a new hiring quota for veterans would cost employers 20 times more than originally estimated. To read AGC’s recent press release and the analysis, click here. It is expected that the rules will be finalized later this year.
For more information, please contact Jim Young at (202) 547-0133 or youngj@agc.org.
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