EEOC Issues Revised Guidance on the Application of the ADAAA to Veterans' Employment

The Equal Employment Opportunity Commission (EEOC) has issued revised guidance documents for employers and disabled veterans that address how various employment laws govern veterans’ employment. According to the EEOC, the revised documents incorporate the changes made by the Americans with Disabilities Act Amendment Act (ADAAA), “which make it easier for veterans with a wide range of impairments – including those that are often not well understood – such as traumatic brain injuries (TBI) and post-traumatic stress disorder (PTSD), to get needed reasonable accommodations that will enable them to work successfully.” The first guidance document aimed at employers differentiates between the protections afforded to veterans with service-connected disabilities under the Americans with Disabilities Act (ADA) and the Uniformed Services Employment and Reemployment Rights Act (USERRA); explains how the ADA applies to recruiting, hiring, and accommodating veterans with disabilities; and provides employers with information on the applicable laws and regulations governing this topic. For example, the guidance explains that:

although the ADA uses different standards than the U.S. Department of Defense and the [Department of Veterans Affairs] in determining disability, many more service-connected disabilities will also be considered disabilities under the ADA than prior to the ADA Amendments Act. In fact, some service-connected disabilities, such as deafness, blindness, partially or completely missing limbs, mobility impairments requiring the use of a wheelchair, major depressive disorder, and PTSD, will easily be concluded to be disabilities under the ADA.

In addition, the document states that, for example, it is illegal for an employer to refuse to hire a veteran because he has PTSD, because he was previously diagnosed with PTSD, or because the employer assumes he has PTSD. Similarly, an employer may not refuse to hire a veteran based on assumptions about a veteran's ability to do a job in light of the fact that the veteran has a disability rating from the U.S. Department of Veterans Affairs (VA). The ADA also limits the medical information employers may obtain and prohibits disability-based harassment and retaliation.

The second guidance document aims to educate veterans on their employment rights, including the steps they can take if they believe employers have unlawfully denied them employment or failed to provide them with a reasonable accommodation.

In a statement, EEOC Chair Jacqueline A. Berrien said: “We want veterans with disabilities to know that the EEOC has resources to assist them as they transition to, or move within the civilian workforce,” adding, “The release of these publications demonstrates our commitment to ensuring that veterans with disabilities receive the full protection of the laws we enforce, and that employers understand how to comply with those laws.”

The publication of these guidance materials comes after the EEOC held a public meeting in November 2011 that included a panel discussion on obstacles disabled veterans face when re-entering the workforce. During that meeting Claudia Gordon, Special Assistant to the Director of the Office of Federal Contract Compliance Programs (OFCCP), discussed her agency’s proposed rule that seeks to strengthen a federal contractor and subcontractor’s affirmative action requirements under the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA). Among other things, the proposal describes specific actions a contractor must take to satisfy its obligations, increases the contractor’s data collection obligations, and requires the contractor to establish hiring benchmarks to assist in measuring the effectiveness of its affirmative action efforts. The OFCCP expects to issue a final rule on these changes by July 2012.

OFCCP to Strengthen Federal Contractor's Affirmative Action Obligations Towards Veterans

The Office of Federal Contract Compliance Programs (OFCCP) is proposing to amend its regulations regarding a contractor’s and subcontractor’s affirmative action and nondiscrimination obligations towards protected veterans under the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA). This law prohibits employment discrimination against specified categories of veterans by federal government contractors and subcontractors, and mandates that each covered contractor and subcontractor take affirmative action to hire and promote veterans. According to a summary included in the notice of proposed rulemaking, (pdf) the intended regulatory changes would strengthen these affirmative action provisions, describe specific actions a contractor must take to satisfy its obligations, increase the contractor’s data collection obligations, and require the contractor to establish hiring benchmarks to assist in measuring the effectiveness of its affirmative action efforts.

The proposal addresses two sets of VEVRAA regulations. Those found at 41 CFR part 60-250 generally apply to government contracts of $25,000 or more entered into before December 1, 2003. The regulations found at 41 CFR part 60-300 apply to government contracts entered into on or after December 1, 2003. The threshold amount to trigger coverage by the affirmative action plan (AAP) requirements for this group is a single contract of $100,000 or more, entered into on or after December 1, 2003. Because of the extensive changes to these regulations, the OFCCP is proposing to rescind part 60-250 in its entirety, as the agency assumes that few, if any, unmodified contracts entered into before December 1, 2003 for $25,000 or more currently exist. The agency seeks comment, however, to determine if any such contracts are still, in fact, in effect.

In the event part 60-250 is not rescinded, the OFCCP has drafted proposed changes to mirror those it makes to part 60-300. The following are some highlights of the proposed regulatory revisions that would apply to both sections:

Definitions

  • With respect to who constitutes a “protected veteran,” the proposal provides definitions for (1) special disabled veterans; (2) veterans of the Vietnam era; (3) veterans who served on active duty in the Armed Forces during a war or in a campaign or expedition for which a campaign badge has been authorized; and (4) recently separated veterans.

EO Clause

  • The proposal adds additional language to the equal opportunity (EO) clause that must be included in all covered federal contracts and subcontracts. The new language clarifies the contractor’s responsibility to “list” jobs in the context of mandatory listing requirements. These listing requirements obligate the contractor to list all employment openings for the duration of the contract with an “appropriate employment service delivery system,” often referred to in the regulations as simply an “employment service.” As discussed in the proposal, in order to satisfy the listing requirement, “the contractor must provide job vacancy information to the appropriate employment service in the manner that the employment service requires in order to include the job in their database so that they may provide priority referral of veterans.” (emphasis in original)
  • With respect to the specific information the contractor must provide to state employment services in each state where the contractor has establishments, the proposal requires the contractor to provide the following information on an annual basis: (1) its status as a federal contractor; (2) the contact information for the contractor hiring official at each location in the state; and (3) its request for priority referrals of protected veterans for job openings at all its locations within the state.
  • The proposal adds a new paragraph to the EO clause requiring the contractor to maintain records, on an annual basis, of the total number of referrals it receives from state employment services, the number of priority referrals of protected veterans it receives, and the ratio of protected veteran referrals to total referrals. These records must be maintained for 5 years.
  • The EO clause would also be revised to clarify that a contractor’s duty to provide notices of employee rights and contractor obligations must be provided in a manner that is accessible and understandable to persons with disabilities.
  • With respect to employees who do not work at a physical location of the contractor, the EO clause would be revised to state that a contractor will satisfy its posting obligations by posting such notices in an electronic format, provided that the contractor provides computers that can access the electronic posting to such employees, or the contractor has actual knowledge that such employees are otherwise able to access the electronically posted notices.

Prohibited Discrimination

  • The proposal includes a new clause qualifying that an individual who rejects a reasonable accommodation made by the contractor may still be considered a qualified disabled veteran if the individual subsequently provides and/or pays for a reasonable accommodation.

Affirmative Action Program

  • To take telecommuting and flextime employees into consideration, the proposal includes a provision explaining that “in instances where the contractor has employees who do not work at the contractor’s physical establishment, the contractor shall inform these employees about the availability of the affirmative action program by means other than a posting at its establishment.”
  • The proposed regulations make “significant, substantive changes” to the contractor’s obligations and the process through which applicants are invited to self-identify as veterans. According to the OFCCP, “these changes are proposed in order to collect enhanced data pertaining to protected veterans, which will allow the contractor and OFCCP to identify and monitor the contractor’s employment practices with respect to protected veterans.” The proposed change would require the contractor to invite all applicants to self-identify as a “protected veteran” prior to the offer of employment. In response to concerns that requiring the contractor to invite applicants to self-identify as a protected veteran would violate the ADA’s general prohibition against pre-offer disability-related inquiries because some protected veterans will be special disabled veterans, the OFCCP states that: “This concern is misplaced, as the ADA and Section 503 regulations permit the contractor to conduct a pre-offer inquiry into disability status if it is ‘made pursuant to a Federal, state or local law requiring affirmative action for individuals with disabilities.”
  • With respect to a contractor’s affirmative action policy, the proposed rule requires that the contractor must review its personnel processes at least annually to ensure that its obligations are being met. The OFCCP contends that the current rule’s requirement that the contractor review these standards “periodically” is vague and subject to confusion. The proposal mandates that contractors take certain specific steps, at a minimum, as part of this review process. These steps are those currently outlined in Appendix C to the regulation. Such steps include: (1) identifying the vacancies and training programs for which protected veteran applicants and employees were considered; (2), providing a statement of reasons explaining the circumstances for rejecting protected veterans for vacancies and training programs and a description of considered accommodations; and (3) describing the nature and type of accommodations for special disabled veterans who were selected for hire, promotion, or training programs.
  • According to the agency, “perhaps the most significant substantive changes in the proposed rule address the scope of the contractor’s recruitment efforts and the dissemination of its affirmative action policies.” For example, the proposal would require a contractor to engage in a minimum number of outreach and recruitment efforts, as outlined in the revised regulations. Among other efforts, the contractor would be required to enter into linkage agreements and establish ongoing relationships with the Local Veterans’ Employment Representative in the local employment service office nearest the contractor’s establishment and at least one of several other listed organizations and agencies for purposes of recruitment and developing training opportunities. In addition, the contractor would be required to consult the Employer Resources section of the National Resource Directory, an online database. The proposed rule would require the contractor, on an annual basis, to review the outreach and recruitment efforts it has undertaken over the previous twelve months and evaluate their effectiveness in identifying and recruiting qualified protected veterans, and document its review.
  • The proposal would mandate certain practices for employers to communicate affirmative action obligations to employees.
  • The proposed regulation would require that the contractor maintain several quantitative measurements and comparisons regarding protected veterans who have been referred by state employment services, have applied for positions with the contractor, and/or have been hired by the contractor.
  • The proposed regulation would also “require for the first time that the contractor establish annual hiring benchmarks, expressed as the percentage of total hires who are protected veterans that the contractor seeks to hire in the following year.”

The proposed revisions to the regulations also includes three appendices: (A) Guidelines On A Contractor’s Duty To Provide Reasonable Accommodation; (B) a sample Invitation to Self-Identify; and (C) Review of Personnel Processes.

Comments on this proposal are due within 60 days of its publication in the Federal Register, which is scheduled for April 26, 2011. All comments must include the identification number: 1250-AA00, and may be submitted electronically through the federal eRulemaking portal, via facsimile to: (202) 693-1304 (for comments of six pages or less), or by mail to: Debra A. Carr, Director, Division of Policy, Planning, and Program Development, Office of Federal Contract Compliance Programs, Room C-3325, 200 Constitution Avenue, N.W., Washington, D.C. 20210.

For more information on this proposal, see Littler’s ASAP: OFCCP Issues Proposed Regulations Requiring Significantly Broader Veterans Affirmative Action Obligations for Federal Contractors and Subcontractors by Joshua Roffman and Alissa Horvitz.

DOL Launches Online Toolkit to Help Employers Hire Veterans

The Department of Labor has launched on online “toolkit” to facilitate an employer’s recruitment, hiring, and retention of veterans. According to the agency, the toolkit “is designed to assist and educate employers who have made the proactive decision to include transitioning Service Members, Veterans and wounded warriors in their recruitment and hiring initiatives.” The online feature is broken up into six steps to help employers: design a strategy for hiring veterans; create an educated and welcoming environment for veteran employees; actively recruit veterans, wounded warriors and military spouses; hire and learn how to accommodate qualified veterans in the workplace; and promote a work environment that retains veteran employees. The final component of the toolkit provides a quick reference list of online resources to assist with the previous five steps.

In a statement, Ray Jefferson, assistant secretary for the department's Veterans' Employment and Training Service, said: “Many employers have told us that they are interested in developing or enhancing a veterans hiring initiative for their company, but that they don't know where to begin,” adding “[t]his toolkit was created with these employers in mind. It's designed to simplify the process and put valuable, vetted resources at the employer's fingertips.”

Obama Issues Executive Order Promoting the Employment of Veterans in the Federal Government

On Monday, President Obama issued an executive order to promote the federal government’s hiring of veterans. The executive order, Employment of Veterans in the Federal Government, creates an interagency Council on Veterans Employment – chaired by the Secretary of Labor and the Secretary of Veterans Affairs – that will advise the President and the Director of the Office of Personnel Management on the veterans’ employment initiative (“Initiative”) created by the executive order, and serve as a national forum for promoting veterans’ employment opportunities in the executive branch. Under the Initiative, most federal agencies will be required to establish a Veterans Employment Program office that will be responsible for helping veterans find jobs within those agencies. In addition, these offices will be in charge of implementing veteran’s recruitment programs and training programs for veterans with disabilities, providing mandatory annual training to the agency’s human resources personnel and hiring managers, coordinating employment counseling to help match veterans’ career goals with the needs of the agency, and transitioning service members into the workforce, among other responsibilities.

According to a press release, the Initiative “underscores to federal agencies the importance of recruiting and training veterans, aims to increase the employment of veterans within the Executive Branch, and helps recently hired veterans adjust to service in a civilian capacity.”

Bill Would Provide Employer Tax Credit for Hiring Veterans

Legislation introduced by Rep. Thaddeus McCotter (R- MI) would amend the Internal Revenue Code to provide employers with a tax credit for hiring veterans. The Veterans’ Employment Transition Support Act of 2009 (VETS Act of 2009) (H.R. 1647) would grant a one-time tax credit to employers, and apply to the employment of any veteran certified as such by the designated local agency.

Employers would be granted credit in the amount of 40 percent of the employee’s first-year wages. A greater tax credit is available for the hiring of disabled veterans. The Act creates a sliding percentage tax benefit scale based on the degree of the employee’s disability. The amendments made by this Act would apply to veterans who begin work after the date of enactment.

This bill has been referred to the House Committees on Energy and Commerce, Education and Labor, and Ways and Means.