On June 29, 2023, in a 6-3 decision authored by Chief Justice Roberts, Students for Fair Admissions, Inc. v. President and Fellows of Harvard College, the U.S. Supreme Court (“Court” or “Supreme Court”) held that college and university race-conscious admission decisions at Harvard University and the University of North Carolina violate the Equal Protection Clause of the 14th Amendment (“the Harvard-UNC Decision”). The specifics of the race-conscious admissions process used by these higher education institutions and the Supreme Court’s opinion is more fully discussed in Husch Blackwell’s recent post, Supreme Court Prohibits Consideration of Race in College Admissions. The majority and concurring opinions, though, have prompted speculation about the decision’s potential impact on federal contractors subject to affirmative action obligations to provide equal employment opportunities to minorities and women under Executive Order 11246 as well as on employers that have voluntarily adopted diversity, equity, and inclusion (DEI) initiatives. While the Harvard-UNC Decision addressed racial preferences as opposed to affirmative action to ensure equal employment opportunities, the decision provides federal contractors and private employers with some guideposts for lawful implementation of affirmative action and DEI practices.
Federal Contractors
OFCCP Publishes Annual Veteran Hiring Benchmark and New Self-Identification of Disability Form
Veteran Hiring Benchmark Decreased to 5.4%
OFCCP released the national annual veteran hiring benchmark effective March 31, 2023, which measures the national percentage of veterans in the civilian labor force. Federal contractors are required to compare their percentage of hires who are protected veterans in each establishment on a facility-wide basis to the annual veteran hiring benchmark to measure the effectiveness of outreach and recruitment of veterans for employment. The national annual veteran hiring benchmark was decreased from 5.5% to 5.4% as of March 31, 2023. If a federal contractor has elected to calculate an individualized hiring benchmark using state-level availability of veterans, OFCCP has also updated state-level availability data.
Changes and Challenges Relating to Affirmative Action Obligations Federal Contractors Face in 2023
The Office of Federal Contract Compliance Programs (OFCCP) has made several announcements, including Directives, Notices, and Proposals in their quest to embark on initiatives that significantly impact federal contractors’ affirmative action obligations. These changes contemplate substantive changes to regulations and existing interpretations of the regulations but are cloaked in terminology such as “guidance” and a proposal to OMB to renew data collection. Many of these initiatives obligate regulated parties to undertake additional significant compliance burdens under the threat of enforcement actions. This blog post, part 1, will discuss two of the changes and the resulting challenges faced by federal contractors: 1) OFCCP’s new interpretation of federal contractors’ obligation to evaluate compensation systems as described in Directive 2022-01 and 2022-01 Revision 1, and 2) the contractor portal. Other changes will be addressed in Part 2 of this series.
OFCCP Intends to Release Contractor Provided 2016-2020 EEO-1 Data Unless Contractors File FOIA Objections to Protect Confidential Information
Key Point
- Federal contractors and subcontractors who filed Type 2 EEO-1 Reports for the years 2016-2020 are advised that the Office of Federal Contract Compliance Programs (OFCCP) intends to release the data from such filed EEO-1 Reports unless they file written objections asserting Freedom of Information Act (FOIA) objections by no later than September 19, 2022