SECTION 503 COMPLIANCE: WHAT CREDIT UNIONS SHOULD KNOW

Transcription

1 SECTION 503 COMPLIANCE: WHAT CREDIT UNIONS SHOULD KNOW New York Trade Association Partnership (NY Tap Talent) Developed by National Disability Institute May 5 th, :00 3:00pm

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7 Today s Moderator Kevin Nickerson Manager, Financial Empowerment & Employment National Disability Institute

8 NY TAP TALENT PARTNERS

9 The NY TAP Talent Employment Program is funded by a grant from the Kessler Foundation.

10 Learning Objectives Brief review, who are federal contractors, are we, and how is this determined? What federal contractors should be doing to remain compliant Practical next steps How NY TAP Talent can help your credit union diversify its workforce Q & A

11 Today s Speaker: Alissa Horvitz Littler Mendelson, P.C. Employment & Labor Law Solutions Worldwide ahorvitz@littler.com

12 Who are Federal Contractors, Are We? OFCCP contends that there are typically two ways that a credit union is going to be covered by the laws and regulations that OFCCP enforces: It holds federal deposits, in any amount It contracts with federal regulatory agencies to purchase deposit insurance Deposit Insurance discussion: credit unions obtain insurance based on asset size at the end of the 4 th quarter Lease on federal property

13 The OFCCP s FAQ Is a financial institution that is covered by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA) with deposit insurance subject to the Affirmative Actions Program (AAP) requirements under Executive Order 11246, as amended, the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA), as amended, 38 U.S.C and Section 503 of the Rehabilitation Act of 1973 (Section 503), as amended? Yes. Financial institutions with federal share and deposit insurance are considered to be government contractors within the meaning of the regulations implementing Executive Order 11246, as amended, the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (VEVRAA), as amended, 38 U.S.C and Section 503 of the Rehabilitation Act of 1973 (Section 503), as amended. These three programs enforced by the Office of Federal Contract Compliance Programs (OFCCP) require equal employment opportunity by government contractors. The implementing regulations for Executive Order at 41 CFR have consistently defined a government contract as any agreement or agreement modification between any contracting agency and any person for the purchase, sale or use of personal property or nonpersonal services. The term "nonpersonal services" includes, but is not limited to, the following services: utilities, construction, transportation, research, insurance, and fund depository. This definition thus explicitly includes agreements for insurance. The implementing regulations for VEVRAA and Section 503, found at 41 CFR , and , respectively, also define a government contract as any agreement or agreement modification between any contracting agency and any person for the purchase, sale or use of personal property or nonpersonal services. Like the Executive Order regulations, these regulations also state that the term "nonpersonal services" includes, but is not limited to the following services: utilities, construction, transportation, research, insurance, and fund depository. Therefore, financial institutions with federal share and deposit insurance are considered to be government contractors.

14 NCUSIF The National Credit Union Share Insurance Fund (NCUSIF) is administered by the National Credit Union Administration (NCUA) for the purpose of providing deposit insurance to protect deposits of credit union members at insured institutions in the United States. It was created in 1970 shortly after the creation of the NCUA as an independent regulator of credit unions. The NCUSIF is funded completely by participating credit unions, and no taxpayer dollars have ever been used to bail out a credit union. The NCUSIF is backed by the full faith and credit of the United States government. Once a credit union is approved for charter by the National Credit Union Administration (NCUA), all their deposits are insured by NCUSIF up to $250,000. When the credit union initially starts to take in deposits they are insured and this continues during the duration of the credit unions existence. Credit unions do not apply for insurance on a yearly basis. Credit unions are examined on a yearly basis by NCUA or the state regulator to ensure they are stating compliant to federal and/or state regulations.

15 Premium Paid to NCUSIF For covered insurance contracts, does OFCCP use the insurance premium or the face value of the policy to determine whether a federal contractor is required to develop and maintain an Executive Order affirmative action plan (AAP)? OFCCP will use the insurance premium to determine if the covered insurance contract meets the $50,000 threshold requirement necessary to obligate the federal contractor to develop and maintain an Executive Order AAP, not the face value of the policy. OFCCP v. Safeco Insurance Co. of America, Secretary of Labor s Decision, July 31, 1984.

16 NCUA Handbook fcu_handbook.pdf No mention of Equal Opportunity in Employment No mention of any of the laws or regulations that OFCCP enforce

17 Only mention of OFCCP is in connection with the Dodd Frank Interagency Policy Statement Establishing Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by [the NCUA] (race and gender, only)

18 How Does OFCCP Know Who is a Contractor? EEO 1s Federal Procurement Data System

19 OFCCP Obligations (not holding $10,000 federal deposits) Nondiscrimination Policies, handbooks, flow down in contracts Record keeping Race and gender self id of applicants $50,000 and 50 employees Women and minorities, and individuals with disabilities AAP Disability self identification of applicants, new hires, base population $100,000 Listing of jobs with the employment service delivery system Protected veterans AAP (50 employees) Veteran self identification of applicants and new hires (50 employees)

20 Section 503 Disability Obligations Self identification of applicants, using the OFCCP s prescribed form Self identification of new hires, using the OFCCP s prescribed form Self identification of employees in [2014 or 2015] and then every five years, using the OFCCP s prescribed form

21 Disability Utilization Goal 7% in each job group, unless the contractor has 100 or fewer employees, in which case the goal is measured against the entire employee population, not broken down by job group Specific action oriented programs Meaningful outreach Internal auditing progress towards the goal

22 Additional Obligations (1 of 2) Include an equal opportunity policy statement in the AAP that shows top executive support for their AAPs ( (a)); Ensure that applicants and employees with disabilities have equal access to the contractors personnel processes, including those implemented using electronic means ( (b)); Assess and document the effectiveness of their outreach and recruitment efforts annually ( (f)(3)); Ensure that outreach and recruitment efforts are documented and retained ( (f)(4)); Document actions taken to comply with the audit and reporting system obligations ( (h));

23 Additional Obligations (2 of 2) Train employees engaged in key personnel activities ( (j)); Conduct data analysis by calculating data related to applicants and hires ( (k)); In addition, under the old regs, review personnel practices ( (b)), review job qualifications ( (c)), make reasonable accommodations available ( (d)), develop harassment policies ( (e)), engage in outreach ( (f)), and have procedures for distributing information on EO and affirmative action efforts ( (g)).

24 Other Obligations Min Wage Executive Order (does not mention fund depository) Fair Pay & Safe Workplaces (dollar thresholds) Non Retaliation for discussing pay Equal Pay Report (EEO 1 question 3) Sex Discrimination Proposed Rule Sexual Orientation and Gender Identity

25 Discussion & Feedback Your thoughts or questions are welcomed you may also use the chat feature to enter questions at this time # 25

26 Benefits of NY TAP Talent: ACCES VR WTO: Assessment and Incentive A Work Try Out can be both an assessment and an incentive to hire The hope is that the job will be permanent, but the WTO should be used by both parties to see if the job is a good match ACCES VR wants both parties to be assured that the employee is right for the job Given that applicants are screened by ACCES VR to be sure they meet at least the minimum qualifications of the jobs they are applying for, WTO funds could be viewed as significant bonus in working with ACCES VR through the NY TAP Talent program

27 Benefits of NY TAP Talent: ACCES VR To utilize a WTO program: The employer must become a vendor through the NYS Fiscal System by providing the W 9 to ACCES VR for submittal ACCES VR will be notified if vendor is approved (usually within 2 3 days) A simple 1 page WTO agreement is completed and signed by the employer to enable ACCES VR to generate an Authorization for Payment A brief 1 page checklist of progress is completed by the employer each month during the WTO period Authorization for Payment is submitted with progress report for reimbursement of wages

28 NY TAP Talent Process Partnering with NY TAP Talent provides access to talented applicants with disabilities and supports greater community impact while assisting you in diversifying your workforce After contacting NYCUA, or one of the contacts we have provided, partnering includes the following: 1. Credit Union provides job leads to ACCES VR point of contact (directly, or through web site if this reflects up to date opportunities) 2. Applicants apply for positions with our partner credit unions, and will place NY TAP Talent Participant on application, if they choose to be identified as part of this program 3. As you would for other qualified applicants, offer an interview 4. If no jobs are currently available, credit unions may offer the option of an informational interview for NY TAP Talent participants (in person or by phone) 5. Use ACCES VR WTO dollars as an assessment of new hire, and as an employer incentive 6. Provide feedback If applicant is not chosen, credit union provides feedback to your VR contact to support process improvement

29 NY TAP Talent Contacts Allison Barna Credit Union Association of New York (518) Dot Marinaccio ACCES VR (607) Kevin Nickerson National Disability Institute inc.org (607)

30 Additional Resources NY TAP Talent website for credit unions: development/real solutions/nytap NY TAP Talent website for applicants: Talent.aspx Section 503 of the Rehabilitation Act: Adult Career and Continuing Education Services Vocational Rehabilitation

31 Additional Training Thank you for joining us today for this training. Please let us know if there are training topics of particular interest that are related to employment and disability as we explore additional trainings through NY TAP Talent for 2015.