Human Resource & Labor News
www.agc.orgJuly 14, 2011 / Issue No. 4-11
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On the Inside
Labor Relations
AGC Testifies on Bill Requiring Level Field for Union and Open Shop Contractors in Federal Procurement
AGC Union Contractors to Meet with Basic Trades Leaders on Oct. 17; Registration Now Open
DOL and NLRB Propose Changes That Could Facilitate Union Organizing
Union Density Among Craft Workers Drops Modestly While Employment Drops Dramatically
Year-to-Date Collective Bargaining Yields Average 1st-Year Wage and Benefits Increase of 1.9%
FASB Continues to Head in Right Direction on Multi-employer Plan Disclosure Standards
Federal Contracting
AGC Submits Comments Opposing OFCCPs Proposed Regulations Regarding Veterans
Parent Company and Subsidiary Considered Single Entity Federal Contractor for OFCCP Purposes
Wage & Hour Division Responds to AGC's Request for More Davis-Bacon Compliance Assistance Resources
Debarment Becoming More Reality Than Threat for Federal Contractors
ICE Issues I-9 Audit Notices to 1,000 Businesses Related to Critical Infrastructure
Federal Contracting
AGC Submits Comments Opposing OFCCPs Proposed Regulations Regarding Veterans

On July 11, 2011, AGC submitted comments on the April 26, 2011, Office of Federal Contract Compliance Program (OFCCP) notice of proposed rulemaking, which would implement significant revisions of the regulations governing affirmative action requirements for direct federal contractors and subcontractors with respect to protected veterans.  AGC fully supports OFCCP’s stated overall goal of increasing employment opportunities for covered veterans; however, AGC does not support the burdensome requirements of this proposed rule, nor does AGC believe more covered veterans will be hired as a result of the proposed requirements.

The proposed rule would impact all stages of direct federal contracting and subcontracting for employers.  Specifically, the proposed rule would require covered employers to:

  • calculate and establish numerical hiring benchmarks using data contractors would have to research for the calculation;
  • extend an offer to self-identify as a protected veteran pre-hire in addition to the current post-hire requirements;
  • track and maintain several new data points on veteran referrals, applicants, and hires, and maintain the data for five years;
  • sign written linkage agreements with a minimum of three veteran sources, per establishment and perform a self-critical analysis of the effectives of each;
  • list vacant positions with employment services in the manner and format they require;
  • create a file for every known veteran applicant and employee, to include every opportunity for which the veteran was considered (vacancy, training and promotion), and a statement outlining the reason for rejection if the veteran was not selected;
  • conduct annual meeting and training programs for all employees and management; and
  • perform and document annual reviews of job descriptions listing the physical and mental job qualifications for all job openings and provide an explanation regarding why each requirement is related to the job.

To read more about the proposed rule, click here.

Originally, OFCCP issued a comment deadline of July 27.  Given the importance of the proposal and feedback received from an AGC hosted conference call with its HR Forum Federal Subforum to discuss the implications of the proposed rule, AGC submitted a letter to OFCCP requesting an additional 60 days to more thoroughly review and comment on the newly proposed requirements.  While OFCCP did not fully grant AGC’s request, OFCCP did grant a 14-day extension.

AGC’s comments ask OFCCP to exempt the construction industry from the requirements of the proposed rule, or at minimum, simplify the requirements for compliance.  Several companies submitted comments through AGC’s Legislative Action Center stating the same.  AGC has also partnered with other employer organizations such as the Equal Employment Advisory Council, the U.S. Chamber of Commerce, the National Association of Manufacturers, the Center for Corporate Equality and the HR Policy Association to send a joint letter of opposition to the proposed rule.

For additional information, contact Tamika C. Carter, PHR at or 703-837-5382.
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