The recent launch of the “Affirmative Action Program Verification Initiative (AAP-VI)” by the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP) adds significance to the question of whether a company is a covered federal contractor or subcontractor subject to OFCCP’s jurisdiction. OFCCP’s AAP-VI will require covered federal contractors and subcontractors to certify annually to the agency that they are complying with applicable written affirmative action program (AAP) requirements.
In this latest in a series of “refresher” memos we’ve prepared on how OFCCP establishes jurisdiction over covered federal contractors, we examine how OFCCP determines whether separate corporate units that have no federal contracts still can be subject to the agency’s jurisdiction by application of a five-factor “single entity” test.
Importantly, as a general rule, OFCCP takes the position that if any part of a corporation or enterprise comes within its jurisdiction, then all parts of that corporation or enterprise are covered, even though some of them may operate quite separately and perform no federal contract work.
Members of the Center for Workplace Compliance (CWC) can read more here.