How will the discontinuance of paper US savings bonds impact financial institutions affirmative action and reporting obligations?
Issue:

As a financial institution that sells paper U.S. savings bonds, your organization has been covered by Executive Order 11246 and the Office of Federal Contract Compliance’s affirmative action and reporting requirements. Now that the Treasury Department has announced the end of over-the-counter sales of paper U.S. savings bonds, will your organization need to continue to comply with affirmative action and reporting requirements?
Answer:    

Any financial institution that falls under the OFCCP's jurisdiction solely because of this one criterion will not be obligated to comply with the OFCCP’s affirmative action and reporting requirements in 2012, according to a Labor Department spokesperson. But the Treasury Department’s action is expected to have little impact on the number of financial institutions under OFCCP’s jurisdiction, as many meet other criteria that subject them to OFCCP rules.

Affirmative action programs. Under Executive Order 11246, any nonconstruction (supply and service) contractor that serves as a depository of government funds in any amount or a financial institution that is an issuing and paying agent for U.S. saving bonds and saving notes in any amount must develop an affirmative action program for women and minorities, as must other private employers who have federal contracts worth more than $10,000.

EEO-1 reporting. The regulations implementing Executive Order 11246 also require contractors with 50 or more employees that serve as a depository of government funds in any amount or a financial institution that is an issuing and paying agent for U.S. saving bonds and saving notes in any amount to file EEO-1 Reports. EEO-1 Reports are also required of all federal contractors (private employers) who have 50 or more employees and are prime contractors or first-tier subcontractors and have a contract, subcontract, or purchase order amounting to $50,000 or more.

Private employers with 100 or more employees and that are subject to Title VII must also file EEO-1 Reports.

Other laws. Section 503 of the Rehabilitation Act imposes affirmative action obligations regarding individuals with disabilities upon all federal contractors whose contracts in excess of $10,000 call for the purchase, sale, or use of personal or nonpersonal services.

Affirmative action for veterans is required of federal contractors by the Vietnam Era Veterans Readjustment Assistance Act. Unless a contract has been entered into prior to December 1, 2003, and has not been modified, the threshold for coverage is $100,000 or more. Covered veterans also vary depending on the date of the federal contract.

Prior bad acts. Finally, even if a financial institution is not within the OFCCP’s jurisdiction in 2012, be aware that those institutions that were subject to the OFCCP’s rules in 2011 can still be investigated over complaints of discrimination stemming from activity that occurred while they were federal contractors.
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