How to Conduct an Affirmative Action Internal Audit
Author: Linda Segall, Segall Enterprises
NOTE: On January 21, 2025, President Trump signed Executive Order (EO) 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity. The EO revokes several EOs from previous administrations that established and expanded affirmative action requirements for certain federal contractors. The Office of Federal Contract Compliance Programs (OFCCP), which oversees federal contractors, is directed to immediately cease holding federal contractors responsible for complying with affirmative action requirements based on race, color, sex, sexual orientation, religion or national origin. Federal contractors may continue to comply with revoked affirmative action requirements for 90 days from the date of the order.
Affirmative action requirements under the Vietnam Era Veterans Readjustment Act of 1974 (VEVRAA) and Section 503 of the Rehabilitation Act (pertaining to disability) remain in effect.
This resource reflects affirmative action requirements as they existed prior to January 21, 2025. Updates will be forthcoming.
Nonconstruction federal contractors having 50 or more employees and contracts of $50,000 or more (or a series of contracts expected to total $50,000 or more) must develop and implement an annual written affirmative action plan (AAP). One of the requirements of a written AAP is to have in place an internal audit and reporting system to measure the effectiveness of the total affirmative action program.
Any business with a federal contract, subcontract or federally assisted construction contract that exceeds $10,000 (or a combined total of more than $10,000 in any 12-month period) also must develop an AAP.
HR managers who are closely managing their AAP will have no difficulty in auditing the AAP. See How to Manage an Affirmative Action Plan. The audit process, however, needs to be documented.
