What is an affirmative action program or plan (AAP)?
Depending on the number of employees at each location, facility, or establishment and the dollar amount of the contract, some federal contractors are required to develop a written AAP. If a contractor is required to have an AAP, it must develop it within 120 days from the start of the contract and must update it annually. Having and implementing the required AAP is the foundation upon which employers base their compliance.
An AAP is a management plan for ensuring that covered federal contractors are providing applicants and employees with equal employment opportunities. An AAP documents the organizational structure, demographic composition of the workforce, and policies, practices, and procedures that the company will use to make sure that qualified applicants and employees are receiving an equal opportunity to apply and compete for jobs, promotions, training, and other employment opportunities.
Contractors with 50 or more employees that meet the respective thresholds set for the dollar amount of the contract are required to develop written AAPs. The dollar thresholds are $50,000 or more under EO 11246 and Section 503, and $150,000 or more under VEVRAA. Multi-establishment companies must have an individual AAP for each location, facility, or establishment that has 50 or more employees.
