Effective April 28, 2016 federal contractors and subcontractors are able to create an Affirmative Action Program based on functional or business units instead of being based on the contractor’s establishment. This is called a Functional Affirmative Action Progam (FAAP). In order for contractors to us this type of program, the contractor must reach an agreement with the Office of Federal Contract Compliance Programs (OFCCP) on the development and use of the FAAP. Without the agreement, contractors are required to develop, implement, and maintain a separate AAP for each company location that has 50 or more employees.
FAAP Requirements:
Unit(s) currently exist and operate independently;
has at least 50 employees;
has its own managing official; and
has the ability to track and maintain its own personnel activity.
This directive is approved through April 30, 2019. For more information about the required elements and procedures on creating a FAAP and getting it approved,
please visit https://www.dol.gov/ofccp/regs/compliance/directives/Dir2013_01_Revision1.html.