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ples, concepts, and steps contained in the standards for identifying, proving, and remedying discrimination.

D.

Ongoing Affirmative Action Program Obligations
Although 41 CFR 60-2.13 (d) and 60-2.23 require

the contractor to identify problem areas (deficiencies) by organizational unit and job groups, these sections lack a clear definition of the potential problems to be addressed. The Task Force recommends that the two provisions be amended to incorporate the following concept:

E.

The contractor should conduct an indepth
examination of the composition of applicant
flow and promotion rates by minority group
status, sex, and the composition of the
workforce with particular attention to
those potential problem areas directed in
60-2.11(a). Special corrective or remedial
action measures shall be undertaken if the
examination discloses any of the following:
(a) That the recruitment, selection, and
promotion system eliminates a significantly
higher percentage of minorities or women
than nonminorities or men. (2) That other
hiring or employment practices operate to
exclude or otherwise have a disparate or
adverse impact on minorities and women
and cannot be justified by a legitimate
overriding business necessity.

Purpose of Compliance Reviews

Title 41 CFR 60-1.20 (a), which establishes the purpose of a compliance review, defines the process as a comprehensive analysis and evaluation of each aspect of the contractor's hiring, placement, training,

governing the terms and conditions of employment, to determine compliance with the nondiscrimination and affirmative action provisions of the order. That definition of compliance reviews is premised upon an

outdated perception of discrimination investigation. It assumes that the initial inquiry involves an extensive, time-consuming, inefficient investigation

designed to uncover facts showing that specific practices are a pretext for employment discrimination against a protected group.

The compliance review process should be redefined along the following lines:

It (a compliance review) shall consist of
an examination of potential or apparent
disparities in the hiring and employment
conditions of minorities and women, a deter-
mination of whether such disparities, if any,
derive from or tend to be perpetuated by the
contractor's hiring and employment practices,
and whether the contractor has developed an
affirmative action program which fully meets
other requirements of 60-2 of this chapter.
Compliance reviews shall be conducted in
accordance with the procedures contained
in part 60-8 of this chapter.

PART IV

APPLICATION OF ENFORCEMENT

SYSTEMS

CHAPTER 9

CURRENT ENFORCEMENT PROCESSES

I.

Introduction and Background

Although Presidents Roosevelt and Truman both issued Executive orders forbidding discrimination by Government contractors, no onsite "compliance review" program was initiated until (and then only minimally) President Eisenhower's Executive Orders of August 1953 (10479) and September 1954 (10577). Those orders expanded the obligations of contractors to include nondiscrimination in "employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay and other forms of compensation and selection for training including apprenticeship." Although the President's Committee on Government Contracts (the administering agency) was given added authority by having the Vice President as chairman, it had no sanctions to apply in cases of noncompliance. However, a system of spot

compliance reviews was initiated.

President Kennedy's Executive Order 10925 af

forded broader enforcement powers, including contract

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