May 23, 2022

Volume XII, Number 143

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May 20, 2022

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Office of Federal Contract Compliance (OFCCP) Announces 2016 Vietnam Era Veterans’ Readjustment Assistance Act Hiring Benchmark

On June 15, 2016, the Office of Federal Contract Compliance (OFCCP) published the 2016 Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) benchmark on its website based on data released by the Bureau of Labor Statistics on March 4, 2016.

The benchmark – 6.9% – is effective as of March 4, 2016, but is not substantially different from last year’s benchmark of 7%. Those federal contractors and subcontractors who adopted the prior year’s 7% benchmark prior to the DOL’s announcement need not change the established benchmark until the current affirmative action plan expires.

Federal contractors and subcontractors subject to the Affirmative Action requirements of VEVRAA who want to calculate an individualized hiring benchmark more reflective of the availability of protected veterans in their geographic area may utilize the alternative five-factor method. However, there is no penalty for not meeting the DOL’s published benchmark. Only those covered contractors and subcontractors who fail to conduct outreach and positive recruitment reasonably designed to effectively recruit protected veterans and to assess their outreach and positive recruitment efforts may be found to be deficient in any compliance review.  Many employers have chosen to simply use the national percentage published by DOL.  However, as better data is available relative to applicant flow and veteran availability, more contractors may shift to the alternative method of setting the benchmark, particularly establishments located in low veteran unemployment areas.

©2022 MICHAEL BEST & FRIEDRICH LLPNational Law Review, Volume VI, Number 200
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About this Author

Farrah Rifelj, Michael Best Law Firm, Labor and Employment Attorney
Partner

Farrah serves Michael Best in two capacities: as Deputy General Counsel and as a partner in the Labor and Employment Relations Practice Group. Her practice focuses on employment counseling and employment litigation, with a particular emphasis on discrimination, noncompetition, and Federal Contract Compliance Programs (OFCCP).

Farrah provides management with astute advice on employment topics such as:

  • Affirmative action

  • Disability accommodation

  • ...
608-283-0110
Elizabeth N. Larson, Michael Best, Employment Discrimination Lawyer, Affirmative Action Compliance Attorney
Associate

Elizabeth focuses on employment discrimination, affirmative action, and Office of Federal Contract Compliance Programs (OFCCP) matters. Clients value her responsiveness, as well as her attention to detail, in these areas. They also look to her for support with trade secret and non-compete litigation.

Elizabeth previously served as a law clerk for MillerCoors where she researched a variety of legal matters including wage garnishments, disability discrimination, immigration law, alcohol and beverage law, privacy, and intellectual property. She...

414-225-8295
Marion Smith, Michael Best Law Firm, Director of Employment Relations and Compliance
Director of Employment Relations and Compliance

Marion applies her extensive experience to a broad range of complex labor and employment and strategic planning issues, working with our lawyers on behalf of Michael Best clients.

Clients turn to Marion for comprehensive executive search services and placement for public and private entities, as well as targeted search services assistance in areas ranging from background and reference checking to preparation and negotiation of initial employment agreements.

She also provides comprehensive management training in...

414-225-2760
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