Affirmative Action Plans Who is Required

Federal contractors are obligated to have, and update annually, affirmative action plans as required by Ex. Order 11246, as amended; the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as amended; and Section 503 of the Rehabilitation Act of 1973, as amended. Where appropriate, the Veterans and Disabled Affirmative Action Plans can be combined into one plan.

The implementing regulations at 41 CFR 60-1.40(a) state each contractor:

	who has 50 or more employees
AND
	has a contract of $50,000.00 or more;
OR
	has Government bills of lading which in any 12-month period, total or can reasonably be expected to total $50,000.00 or more;
OR
	serves as a depository of Government funds in any amount;
OR
	is a financial institution which is an issuing and paying agent for U.S. savings bonds and savings notes in any amount, shall develop a written affirmative action plan for each of its establishments.

Each contractor or subcontractor shall require each subcontractor:

	who has 50 or more employees
AND
	has a subcontract of $50,000.00 or more;
OR
	has Government bills of lading which in any 12 month period, total or can reasonably be expected to total $50,000.00 or more;
OR
	serves as a depository of government funds in any amount;
OR
	is a financial institution which is an issuing and paying agent for U. S. savings bonds and savings notes in any amount to develop a written affirmative action compliance plan for each of its establishments.

Contractors obligated to have Executive Order AAPs as defined above are also obligated to have AAPs that meet the requirements of the Veterans’ Act at 41-CFR 60-250-40 and that for the Disabled at 741-40.

If you need assistance with your affirmative action requirements contact us at 1(800) 633-4775.