Katrina Relief: U.S. Labor Department Exemption of Contractors from Written Affirmative Action Requirements


 

Publication Date: September 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Business

Type:

Abstract:

On September 9, 2005, the Employment Standards Administration (ESA) issued a memorandum to all federal contracting agencies waiving for a three-month period written affirmative action program, reporting, and notice requirements imposed by E.O. 11246 and related disability laws with respect to federal contracts for Hurricane Katrina relief efforts. Generally, regulations of the Office of Federal Contract Compliance Programs (OFCCP) under E.O. 11246 require federal contractors and subcontractors, with 50 or more employees, and contracts in excess of $50,000, to refrain from discrimination and to take affirmative action with respect to the employment of racial and ethnic minorities, women, and religious adherents. Section 503 of the Rehabilitation Act of 1973, as amended, requires contractors to take affirmative action and make reasonable accommodations in hiring qualified individuals with disabilities. The Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRA) requires employers with government contracts in excess of $100,000 or more to take affirmative action "to employ and advance in employment" disabled veterans and qualified veterans of the Vietnam era.

The ESA invoked a regulatory exemption to relieve contractors of the obligation "to develop the affirmative action program, prepare the reports, or provide the notices usually required" by Labor Department (DOL) regulations under the three laws. However, while avoiding affirmative action planning and reporting aspects ? possibly including goals, timetables, and perhaps other "proactive" hiring and recruitment methods ? the memorandum indicates that federal contractors remain subject to the basic anti-discrimination bans under those laws, which may be enforced by individual complaint or agency compliance review. The waiver and exemption appear to expire after three months, but the memorandum makes clear that they are "subject to an extension should special interests in the national interest so require." On September 9, 2005, the Employment Standards Administration (ESA) issued a memorandum to all federal contracting agencies waiving for a three-month period written affirmative action program, reporting, and notice requirements imposed by E.O. 11246 Congressional Research Service ~ The Library of Congress