On March 24, 2014 the Office of Federal Contract Compliance Programs ‘OFCCP’ updated several regulations relative to protected veterans and individuals with disabilities which are having effect on FDIC insured Bank’s with 50 or more employees, regardless of employment status. These regulatory changes are broken down into two different phases, Phase I changes which are effective March 24, 2014 and Phase II changes which are effective the next time a Bank updates its’ Affirmative Action Plan (AAP) after March 24, 2014.
The Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA), prohibits employment discrimination against ‘protected veterans’ by covered Federal contractors and subcontractors which requires affirmative action be taken to employ such veterans. Relative to individuals with disabilities, Section 503 of the Rehabilitation Act of 1973 prohibits discrimination on the basis of disability by Federal government contractors and subcontractors which requires affirmative action be taken to employ and advance individuals with disabilities. Guidance reveals as banks are insured by the FDIC, which is a government entity, banks in turn, must comply with the new requirements as Bank’s are considered a federal government contractor of the FDIC.
There are PHASE 1 obligations which FDIC insured Banks with 50 or more employees must comply with effective March 24, 2014.
While these changes to the Bank’s recruiting and Affirmative Action Plans may appear to be cumbersome – it appears to be necessary as many of our troops returning from home and individuals with disability are experiencing difficulties in obtaining employment. As Banks are federal government contractors of the FDIC, it is an important step to require Banks to publicize external job postings with state employment agencies to ensure vacancies are appropriately communicated through the appropriate employment channels and adhere to the requirements to ensure Banks are hiring such persons in accordance with VEVRAA and Section 503 Regulations.
From a regulatory review perspective, it has been advised that regulators are reviewing certain aspects of the ‘OFCCP’ regulatory updates as part of its’ Safety and Soundness Examination to satisfy FDIC obligations of federal government contracting. For further assistance on this recent regulatory update, please visit the Department of Labor Regulations webpage at: http://www.dol.gov/ofccp/regs/compliance/vevraa.html for Protected Veterans; http://www.dol.gov/ofccp/regs/compliance/section503.html for Individuals with Disabilities; and Department of Labor Frequently Asked Questions webpage at http://www.dol.gov/ofccp/regs/compliance/faqs/juristn.htm#Q1 for questions relative to financial institutions.
Deposit, Operations and Branch Audit Team Leader
Mr. Burns leads the Deposit and Operations Audit Team and Branch Audit Team at P&G Associates, performing detailed and in depth audit procedures relative to these areas. He has obtained a wide range of audit, financial and banking compliance experience, including extensive knowledge experience in all aspects of operations and compliance at community financial institutions.