tion, disciplinary, and related processes should be carefully selected and trained to insure elimination of bias in all personnel actions.

(2) The contractor shall observe the requirements of the OFCC Order pertaining to the validation of employee tests and other selection procedures.

(3) Selection techniques other than tests may also be improperly used so as to have the effect of discriminating against minority groups and women. Such techniques include but are not restricted to, unscored interviews, unscored or casual application forms, arrest records, credit checks, considerations of marital status or dependency or minor children. Where there exist data suggesting that such unfair discrimination or exclusion of minorities or women exists, the contractor should analyze his unscored procedures and eliminate them if they are not objectively valid.

(e) Suggested techniques to improve recruitment and increase the flow of minority or female applicants follow:

(1) Certain organizations such as the Urban League, Job Corps, Equal Opportunity Programs, Inc., Concentrated Employment Programs, Neighborhood Youth Corps, Secondary Schools, Colleges, and City Colleges with high minority enrollment, the State Employment Service, specialized employment agencies, Aspira, LULAC, SER, the G.I. Forum, the Commonwealth of Puerto Rico are normally prepared to refer minority applicants. Organizations prepared to refer women with specific skills are: National Organization for Women, Welfare Rights Organizations, Women's Equity Action League, Talent Bank from Business and Professional Women (including 26 women's organizations), Professional Women's Caucus, Intercollegiate Association of University Women, Negro Women's sororities and service groups such as Delta Sigma Theta, Alpha Kappa Alpha, and Zeta Phi Beta; National Council of Negro Women, American Association of Uni

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versity Women, YWCA, and sectarian groups such as Jewish Women's Groups, Catholic Women's Groups, and Protestant Women's Groups, and women's colleges. In addition, community leaders as individuals shall be added to recruiting sources.

(2) Formal briefing sessions should be held, preferably on company premises, with representatives from these recruiting sources. Plant tours, presentations by minority and female employees, clear and concise explanations of current and future job openings, position descriptions, worker specifications, explanations of the company's selection process, and recruiting literature should be an integral part of the briefings. Formal arrangements should be made for referral of applicants, followup with sources, and feedback on disposition of applicants.

(3) Minority and female employees, using procedures similar to subparagraph (2) of this paragraph, should be actively encouraged to refer applicants.

(4) A special effort should be made to include minorities and women on the Personnel Relations staff.

(5) Minority and female employees should be made available for participation in Career Days, Youth Motivation Programs, and related activities in their communities.

(6) Active participation in "Job Fairs" is desirable. Company representatives so participating should be given authority to make on-the-spot commitments.

(7) Active recruiting programs should be carried out at secondary schools, junior colleges, and colleges with predominant minority or female enrollments.

(8) Recruiting efforts at all schools should incorporate special efforts to reach minorities and women.

(9) Special employment programs should be undertaken whenever possible. Some possible programs are:

(1) Technical and nontechnical coop programs with predominately Ne

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gro and women's colleges.

(11) "After school" and/or workstudy jobs for minority youths, male and females.

(11) Summer jobs for underprivileged youth, male and female.

(iv) Summer work-study programs for male and female faculty members of the predominantly minority schools and colleges.

(v) Motivation, training and employment programs for the hard-core unemployed, male and female.

(10) When recruiting brochures pictorially present work situations, the minority and female members of the work force should be included, especially when such brochures are used in school and career programs.

(11) Help wanted advertising should be expanded to include the minority news media and women's interest media on a regular basis.

(f) The contractor should insure that minority and female employees are given equal opportunity for promotion. Suggestions for achieving this result include:

(1) Post or otherwise announce promotional opportunities.

(2) Make an inventory of current minority and female employees to determine academic, skill and experience level of individual employees.

(3) Initiate necessary remedial, job training and workstudy programs.

(4) Develop and implement formal employee evaluation programs.

(5) Make certain "worker specifications" have been validated on job performance related criteria. (Neither minority nor female employees should be required to possess higher qualifications than those of the lowest qualified incumbent.)

(6) When apparently qualified minority or female employees are passed over for upgrading, require supervisory personnel to submit written justification.

(7) Establish formal career counseling programs to include attitude de

401:741

velopment, education ald, job rotation, buddy system and similar programs.

(8) Review seniority practices and seniority clauses in union contracts to insure such practices or clauses are nondiscriminatory and do not have a discriminatory effect.

(g) Make certain facilities and company-sponsored social and recreation activities are desegregated. Actively encourage all employees to participate.

(h) Encourage child care, housing and transportation programs appropriately designed to improve the employment opportunities for minorities and women. (As amended, July 12, 1974)

§ 60-2.25 Internal audit and reporting systems.

(a) The Contractor should monitor records of referrals, placement s, transfers, promotions and terminations at all levels to insure nondiscriminatory policy is carried out.

(b) The contractor should require formal reports from unit managers on a schedule basis as to degree to which corporate or unit goals are attained and timetables met.

(c) The contractor should review report results with all levels of management.

(d) The contractor should advise top management of program effectiveness and submit recommendations to improve unsatisfactory performance.

§ 60-2.26 Support of action programs.

(a) The contractor should appoint key members of management to serve on Merit Employment Councils, Community Relations Boards and similar organizations.

(b) The contractor should encourage minority and female employees to participate actively in National Alliance of Businessmen programs for youth motivation.

(c) The contractor should support

Vocational Guidance Institutes, Vestibule Training Programs and similar activities.

(d) The contractor should assist secondary schools and colleges in programs designed to enable minority and female graduates of these institutions to compete in the open employment market on a more equitable basis.

(e) The contractor should publicize achievements of minority and female employees in local and minority news media.

(f) The contractor should support programs developed by such organizations as National Alliance of Businessmen, the Urban Coalition and other organizations concerned with employment opportunities for minorities or

women.

Subpart D-Miscellaneous

§ 60-2.30 Use of goals

The purpose of a contractor's establishment and use of goals is to insure that he meet his affirmative action obligation. It is not intended and

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should not be used to discriminate against any applicant or employee because of race, color, religion, sex, or national origin.

§ 60-2.31 Preemption.

To the extent that any State or local laws, regulations or ordinances, including those which grant special benefits to persons on account of sex, are in conflict with Executive Order 11246, as amended, or with the requirements of this part, we will regard them as preempted under the Executive order. 860-2.32 Supersedure.

All orders, instructions, regulations, and memoranda of the Secretary of Labor, other officials of the Department of Labor and contracting agencies are hereby superseded to the extent that they are inconsistent herewith, including a previous "Order No. 4" from this Office dated January 30, 1970. Nothing in this part is intended to amend 41 CFR 60-3 published in the Federal Register on October 2, 1971 or Employee Testing and Other Selection Procedures or 41 CFR 60-20 on Sex Discrimination Guidelines.

40340

DEPARTMENT OF LABOR

Office of Federal Contract Compliance
Programs

[41 CFR Parts 60-1, 60-2, 60-5, 60-8] EQUAL EMPLOYMENT OPPORTUNITY Proposed Rulemaking

Section 201 of Executive Order 11246,

as amended (30 FR 12319; amended, 32 FR 14303), provides that the Secretary of Labor shall adopt rules, regulations and orders as he deems necessary and appropriate to achieve the purposes of the Order. Since the Secretary's regulations

to implement the Executive Order were originally issued in May of 1968 (33 FR 7804) they have been periodically expanded, revised and updated to reflect newly emerging concepts in the equal employment opportunity field, including litigation decisions and increased sophistication in enforcement and monitoring. This piecemeal development has resulted in a regulatory structure which, in some instances, is complex, repetitious, and unclear.

Accordingly, the Department of Labor herein proposes to revise and redesignate the regulations in 41 CFR Parts 60-1 through 60-60. Significant changes, which are further outlined below, are proposed to replace Part 60-1, Obligations of contractors and subcontractors; Part 60-2, Affirmative action programs; Part 60-30, Hearing rules for sanction proceedings; and Part 60-60, Contractor evaluation procedures for contractors for supplies and services, except that no changes are being proposed regarding the Standard Compliance Review Report. No amendment of Part 60–3, Employee testing and other selection procedures, is proposed at this time. However, it is the intent of the Department of Labor to amend such part to conform with the final version of the Uniform Guidelines on Employee Selection Procedures published for comment on July 14, 1976 (41 FR 29016) by the Equal Employment Opportunity Coordinating

Council.

Neither are any changes proposed at this time in the Sex discrimination guidelines (Part 60-20), Examination and copying of OFCC documents (Part 60-40) and Guidelines on discrimination because of religion or national origin (Part 60-50).

The regulations will also be rearranged in a more orderly manner. Part 60-1 will continue to be designated Obligations of contractors and subcontractors; Part 602 will be known as Affirmative action compliance programs and references to Revised Order No. 4 will be dropped; Part 60-3 will continue to be referred to

PROPOSED RULES

and appropriate adjustments will be made in the other part numbers affected by the change); Examination and copy-. ing of OFCCP documents now in Part 60-40 will be transferred to Part 60-6; Guidelines on discrimination because of religion or national origin will be transferred to Part 60-7; and Revised Order No. 14 will be designated Standards and procedures for conducting compliance reviews of contractors for supplies and services and will be transferred to Part 60-8. The various plans now published in Parts 60-5 through 60-8 and 60-10 through 60-11 will be transferred to Part 60-20 on final rulemaking. Those parts for which no substantive changes are being proposed will be amended on final rulemaking to reflect the OFCCP's new

name.

Interested persons are invited to submit written comments, suggestions or objections regarding the proposed revision to Lawrence Z. Lorber, Director, Office of Federal Contract Compliance Programs, U.S. Department of Labor, Washington, D.C. 20210, on or before November 16, 1976.

SUMMARY OF PROPOSED CHANGES TO TITLE 41 CFR PART 60-1

The format of Part 60-1 has been reorganized. Part 60-1 is now divided into four subparts, each of which sets forth the obligations of a particular participant in the compliance process. Subpart A, for example, outlines the obligations of contractors and subcontractors, Subpart B discusses the obligations of compliance agencies, Subpart C contains instructions for filing complaints, and Subpart D covers ancillary matters, most of which are the direct responsibility of OFCCP. These revisions improve upon the present format and make it easier to understand the requirements of the regmade in the proposed revision of Part ulations. Specific substantive changes 60-1 follow:

"establishment" has been added (§ 601.3(k)). In addition, the definition of "agency" has been amended to include a compliance agency (§ 60-1.3(c)); the definition of "minority group" has been amended to specify the particular groups for whom the written affirmative action

Section 60-1.3. A definition of the term

compliance program requirements of 41 the contractor workforce eporting reCFR 60-1.6 and 41 CFR Part 60-2 and quirements of 41 CFR 60-1.9 are intended ministrative law judge" has been substi(§ 60-1.3(p)); and the definition of “adtuted for the definition of "hearing officer" (8 60-1.3(b)).

any single contract. Such cumulation for purposes of coverage is intended to ensure equal employment opportunity by contractors with significant Federal in

volvement notwithstanding the relative amount of each contract.

The limited exemptions for state and local governments from the requirements of the equal opportunity clause and the obligations for filing compliance reports and developing written affirmative action compliance programs remains unchanged in proposed § 60-1.5(a) (4). However, public comment specifically is invited on further limiting these exemptions from the requirements of the equal opportunity clause, of filing reports, and of developing written affirmative action compliance programs. For example, should public utilities, transportation operations or other functions or portions of state or local governments (or agencies, instrumentalities or subdivisions thereof, including special authorities) be required to develop written affirmative action compliance programs and/or file special compliance reports covering their own employment practices? Are such extensions to other governmental entities or activities needed and feasible? What problem areas might be encountered in such extensions and how may they be resolved or minimized? What should be the precise parameters of such extensions?

Proposed 41 CFR 60-1.5(a) (6), dealing with work on or near Indian reservations, is a republication of the Department's proposal of June 25, 1976, (41 FR 26229) for expanding the employment opportunities of American Indians living on or near an Inndian reservation in both construction and noconstruction employment. The proposal would parallel section 703 (1) of the Civil Rights Act of 1964, as amended, and would allow construction and nonconstruction contractors and subcontractors to engage in certain preferential hiring of such Indians.

Section 703 (1) of the Civil Rights Act of 1964, as amended states:

Nothing contained in this title shall apply to any business or enterprise on or near an Indian reservation with respect to any publicly announced employment practice of such business or enterprise under which a preferential treatment is given to any individual because he is an Indian living on or near a reservation.

The use of the word "near" would include all that area where a person seeking employment could reasonably be expected

to commute to and from in the course of a work day. This definition is consistent with that offered by the Equal Employment Opportunity Commission to the U.S. Commision on Civil Rights in an opinion letter dated July 18, 1973.

In accordance with the Federal equal employment policy contained in section 715 of the Civil Rights Act of 1964, as amended, for consistent standards among the Federal equal employment opportunity enforcement agencies, the Department of Labor proposes to adopt the policy enunciated in section 703 (1) of the Civil Rights Act of 1964, as the applicable standard under Executive Order 11246 for contractors performing contracts on or near an Indian reservation.