FAQs

Coverage

• Do I need an affirmative action plan?
• How do I determine which employees to count as part of a single business?

Do I need an affirmative action plan?

Yes, if you have at least 50 employees and a federal contract worth at least $50,000. You also may be covered if you are a financial institution serving as a depository of federal funds or an issuer of savings bonds or notes. If you do business with certain state governments, you may be subject to broader coverage requirements. Wisconsin, for example, requires state contractors to submit a plan if they have at least 25 employees and a state contract worth at least $25,000. All of these tests apply to the business as a whole and not merely to a single facility, even if the contract is serviced from a single location. Different standards apply to construction contractors.

How do I determine which employees to count as part of a single business?

You must look at several factors including (1) common ownership; (2) common owners, directors, or officers; (3) common control over business operations; (4) centralized control over personnel policies; and (5) interdependence of your operations. Each of these factors must be weighed, but none is controlling. Even if one factor is completely absent, it could be outweighed by other considerations.

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