On Friday, the Office of Federal Contract Compliance Programs announced that the new annual hiring benchmark for protected veterans is 6.4%.
Under OFCCP’s regulations, the national hiring benchmark equals the national percentage of veterans in the civilian labor force. This new hiring benchmark went into effect on March 31, 2018 and is a slight reduction from last year’s benchmark of 6.7%. In fact, the benchmark has decreased each year since instituted by the OFCCP in 2014, when it was 7.2%.
The hiring benchmark for protected veterans under the Vietnam Era Veterans’ Readjustment Assistance Act is not a rigid or inflexible quote, but is meant to measure the effectiveness of a federal contractor’s veteran outreach and recruitment efforts. To meet the benchmark, 6.4% of a contractor’s competitive selections during the AAP year must be protected veterans.
Contractors have the option of adopting the national benchmark of 6.4% or developing an individualized VEVRAA hiring benchmark. To develop an individualized benchmark, contractors must consider five factors:
- the average percentage of veterans in the civilian labor force in the state
- the number of veteran participants in Employment Service Delivery System in the state over the last four quarters
- applicant and hiring ratio data for the previous year
- recent assessments of the effectiveness of outreach and recruitment efforts
- other factors affecting availability of qualified protected veterans
The OFCCP’s website contains a state-by-state breakdown of the percentage of veterans in the civilian labor force and information about participation in the Employment Service Delivery System in each state to assist in setting an individualized benchmark.
We generally recommend that contractors adopt the national percentage of veterans in the civilian labor force instead of setting an individualized benchmark for a variety of reasons. Namely, it is much simpler to so do, and the possibility of setting a higher goal than necessary is eliminated. More significantly, though, the OFCCP cannot challenge a contractor’s benchmark based on that figure, whereas a lower benchmark could receive increased scrutiny by the agency.
Our Affirmative Action Alert blog focuses on the latest news and topics affecting federal contractors and subcontractors and their compliance with affirmative action and other employment-related laws and regulations. With breaking news, quick updates, and headlines on the Office of Federal Contract Compliance Programs and affirmative action issues, this blog is a great resource for in-house counsel, HR managers, and other compliance professionals. Our blog is a companion to Constangy’s Affirmative Action newsletters, which address significant legislative, regulatory, and administrative proposals and changes. Subscribe to both to stay current on these important topics!
Subscribe
Archives
- November 2024
- June 2024
- May 2024
- March 2024
- February 2024
- January 2024
- October 2023
- September 2023
- August 2023
- May 2023
- April 2023
- March 2023
- January 2023
- November 2022
- October 2022
- September 2022
- August 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- July 2021
- June 2021
- April 2021
- March 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- July 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- December 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017