Frequently Asked Questions About the Federal Contractor Program for Hiring Veterans
NOTE / DISCLAIMER
The Frequently Asked Questions (FAQ) listed on this page are a reflection of the VETS-100 Reporting requirements for the report due September 30, 2006. In addition, VETS has included information on upcoming changes for the 2007 VETS-100 reporting cycles. If you have a question that is not addressed on this page, please contact the VETS-100 office by e-mail at [email protected] or by phone at (301) 306-6752 for further assistance.
The Federal Contractor Program requires that any contractor receiving a contract from the federal government in the amount of $25,000 or more, or any subcontractor receiving a contract in the amount of $25,000 or more from such a covered contractor must file a VETS-100 Report on an annual basis. In addition, any federal contractor or subcontractor is also required to take affirmative action to hire and promote qualified special disabled veterans, veterans of the Vietnam-era and any veterans who served on active duty during a war or in a campaign or expedition for which a campaign badge has been authorized.
The following are frequently asked questions regarding the two components of the Federal Contractor Program - the Federal Contractor Job Listing Program and the VETS-100 Reporting Requirement.
A. FEDERAL CONTRACTOR JOB LISTING PROGRAM
A-1. What are the requirements of the Federal Contractor Job Listing Program and what is the legal basis for reporting requirements?
Title 38, United States Code, Section 4212(d) requires that Federal contractors report at least once annually the numbers of special disabled, Vietnam-era veterans, and other eligible veterans in their workforce by job category and hiring location and the total number of employees and the number of special disabled, Vietnam-era veterans, and other eligible veterans hired during the reporting period. Implementing regulations are found at 41 CFR 61-250. Federal contractors and subcontractors are required to immediately list all employment openings with the nearest State Job Service office (also known as State Employment Service or One Stop Service Location) and Workforce Development Offices (in some States). This job-listing requirement applies to all job openings with the exception of executive or top management jobs, positions filled from within the organization, and jobs lasting 3 days or less. This includes agreements to lease workers from "Temp Agencies." Qualified special disabled veterans, veterans of the Vietnam-era and any veterans who served on active duty during a war or in a campaign or expedition for which a campaign badge has been authorized are given priority by the Job Service for referral to the Federal contractor and subcontractor job openings. The priority referral does not obligate an employer to hire any veteran referrals.
MilitaryConnection.com connects with all Veteran Service Officers nationwide at One Stop Service Locations in addition to Transition Officers in all Branches of Service.
A-2. As a Federal contractor, what is my responsibility towards my subcontractors?
It is the responsibility of Federal contractors who utilize subcontractors to communicate all Federal requirements to all subcontractors who are awarded subcontracts of $25,000 or more. Federal contractors are also responsible for notifying their subcontractors of their EEO responsibilities with regards to veterans, affirmative action requirements including job-listing requirements and the VETS 100 reporting requirements.
A-3. How do I list job openings with a Job Service local office, local One Stop Service Center or Workforce Development Office?
To list job openings with a local office, contractors and subcontractors must contact the local office of the State employment service location in their area. The Veterans' representatives in the state employment Service local office can help explain the requirements of the Federal Contractor Program. To locate the state employment service center, local one stop service center or Workforce Development local office nearest you, please contact your state's Director for Veterans' Employment and Training (DVET). A directory of State DVET offices can be located at the following web site:http://www.dol.gov/vets/aboutvets/contacts/main.htm
A-4. Am I required to have an affirmative action plan?
Federal contractors and subcontractors must have written affirmative action plans or policies, if you have 50 employees and $50,000 or more in Federal contract funds. Contractors must be able to verify the plans have been followed and that no discrimination has occurred against veterans or other covered groups. These contractors must also demonstrate active recruitment of special disabled veterans, veterans of the Vietnam-era and any veterans who served on active duty during a war or in a campaign or expedition for which a campaign badge has been authorized, and that information regarding promotion activities within their organization has been disseminated.
MilitaryConnection.com specializes in connecting your company with viable veterans, including disabled veterans, in occupational specialties across the board.
A-5. What happens if I don't comply with the Federal Contractor Job Listing requirements?
OFCCP is a Federal agency within the Department of Labor responsible for compliance and enforcement of the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA), as well as compliance and enforcement of other requirements mandated for Federal contractors and subcontractors. When violations are identified, OFCCP generally attempts to negotiate a mutually acceptable remedy with the contractor to resolve any major violation. Also see Section B-18 of this document.
B. VETS-100 REPORTING REQUIREMENT
B-1. Who must file a VETS-100 Report?
Any entity who received a contract(s) from the Federal Government in the amount of $25,000 or more, prior to December 1, 2003, or any subcontractor who received a contract(s) from such a covered contractor in the amount of $25,000 or more, must file a VETS-100 Report on an annual basis.
The PL 107-288 increased the reporting threshold to $100,000 to become effective December 1, 2003 for contracts awarded on or after this date. However, regulations have not yet been cleared.
B-2. When is the VETS-100 Report due?
The VETS-100 Report is due September 30, on an annual basis, to the Department of Labor.
B-3. What is the period covered in the VETS-100 Report?
The VETS-100 Report allows Federal contractors to select a reporting period based on payroll periods during the third quarter (July through September) Federal contractors may pick any pay period as noted during this quarter to determine their previous 12-month reporting period for defining the reporting year. "Number of Employees" and "New Hires" are reported during this period ending in the current year for which the report is being filed. Contractors that have obtained written approval from the Equal Employment Opportunity Commission (EEOC) to file the EEO-1 Report at the end of the calendar year (December 31) may use December 31for filing the VETS-100 Report with written approval from VETS. Such requests must be submitted to USDOL/VETS prior to the September 30 deadline as "late filing request to file in January" and will be considered on an individual basis.
B-4. How do I obtain the VETS-100 form and instructions?
If your company is part of the VETS-100 database, you will have a VETS100 Report identification number on file. You will receive a Notice of Filing Obligation prior to the September deadline with current reporting information. If you do not receive this notice, or are a new Federal contractor, you may download this from our website at http://vets.dol.gov/vets100, email us at [email protected] or call (301) 306-6752. When requesting forms, please provide the parent company name, address, contact person, telephone number and e-mail address.
B-5. What is a "NAICS" code?
The North American Industry Classification System (NAICS) has replaced the U.S. Standard Industrial Classification (SIC) system. NAICS will reshape the way we view our changing economy. Also available at this site are lists of 2002 NAICS codes (with links to definitions).
NOTE: SIC codes were replaced by the North American Industrial Classification System (NAICS) in October 2000. The official 2002 US NAICS Manual North American Industry Classification System--United States, 2002 includes definitions for each industry, tables showing correspondence between 2002 NAICS and 1997 NAICS for codes that changed, and a comprehensive index. To order the 1400-page 2002 Manual, in print, call NTIS at (800) 553-6847 or (703) 605-6000, or check the NTIS web site http://www.dol.gov/cgi-bin/leave-dol?exiturl=http://www.ntis.gov/products/bestsellers/naics^Q^loc=4-2-0&exitTitle=NTIS_Web_Site. The 1250-page 1997 Manual, showing correspondence between 1997 NAICS and 1987 SIC, is also available. The 2002 and 1997 versions of NAICS are available on CD-ROMs, which can be ordered at NTIS.
B-6. What is the DUNS number and why is it being requested?
The Dun and Bradstreet Universal Numbering System (DUNS) provides numbers to employers upon request as assigned by Dun and Bradstreet. It has become the standard for all U.S. Federal government electronic commerce transactions. Employer submission of this number will assist VETS in identifying Federal contractors and subcontractors. An employer may request a DUNS number at no cost by calling Dun and Bradstreet at 1-800-333-0505. Additional information about the DUNS number can be found at the following web site: http://www.dnb.com/ http://www.dol.gov/cgi-bin/leave-dol?exiturl=http://www.dnb.com/&exitTitle=Dun_and_Bradstreet
B-7. What is the EIN number and why is it being requested?
The Employer Identification Number (EIN) is assigned by the Internal Revenue Service to all employers. Employers listing openings are identified by their EIN number, therefore submission of this number will assist the Veterans' Employment and Training Service (VETS) in correctly identifying contractors and in linking our Federal contractors database with to verify submission of reporting. This information will assist VETS in updating and maintaining a current database, including removal of employers who are no longer required to submit the VETS-100 form.
B-8. What is considered a parent company? What does "Hiring Location" mean?
The term "parent company" refers to any corporation which owns all or the majority stock of another corporation so that the latter stands in relation to it as a subsidiary. A separate VETS-100 report must be filed for the corporate office of any parent corporation that owns a company holding federal contracts and/or subcontracts in the amount of $25,000 or more.
Hiring location as defined by 41 CFR 61-250.2 (b) (1) refers to a single, physical location of a company that conducts business and is a relatively permanent establishment. For example, if Contractor A has its headquarters in City X and two other hiring locations in Cities Y and Z, the company is required to file a VETS-100 Report for its headquarters in City X and two separate VETS-100 Reports for the locations in City Y and City Z. However, for locations involving construction and similar types of physically dispersed industrial activities, it is not necessary to list separately each individual site, project, field, line, etc., unless the site is recognized as a separate legal entity with an individual Employer Identification Number separate from that of the contractor. The following web site provides the specific definition of hiring location, as defined by regulation:
B-9. What is meant by "Number of Employees?"
The number of employees as defined by 41 CFR 61-250.2 (b) (2) is the number of permanent full-time and part-time employees who are employed as of the ending date of the selected payroll period. "Employees" shall not include those persons hired on a casual basis for a specified time such as seasonal and temporary workers, or employees obtained through hiring halls or agents. Contractors must now also include the maximum and the minimum number of employees during the period covered by the report. The specific definition of employee, as defined by regulation, can be found at the following web site:
B-10. What is meant by "New Hires?"
A "new hire" is anyone hired as a permanent employee during your reporting period even if they are not currently employed by your company. A "new hire" includes permanent full-time or permanent part-time. An employee may have been hired, laid off and rehired. In such an instance, if the employee met the veteran definition, the employee would count in each instance as a new hire.
B-11. What is meant by "Maximum and Minimum" number of employees?
The maximum number of employees is the "maximum" is the greatest number of employees employed during any one payroll period of the 12 month reporting period covered by the report. The "Minimum" is the smallest number of employees employed during any one payroll period of the 12 month reporting period covered.
B-12. Where are the definitions of veterans found for purposes of reporting?
B-13. What is the "State Consolidated Report?"
The State Consolidated Report is an option for companies that have a number of small locations in a state. All multi-establishment employers must file (1) a report covering the principal or headquarters office (2) a separate report for each hiring location employing 50 or more persons, and (3) either, (i) a separate report for each hiring location employing fewer than 50 persons, or (ii) consolidated reports, by State, combining all hiring locations within one State that have fewer than 50 employees each. Each consolidated report also must list the name and address of the hiring locations covered by the report, a contact person, contact number and email address.
B-14. How do I obtain forms to file?
Forms and instructions may be downloaded for filing, as well as Frequently asked Questions, at http://vets.dol.gov/vets100/
B-15. Can I file electronically?
Yes, anyone may choose to file electronically. Employers can file electronically by web or submit a diskette. Detailed instructions on electronic filing can be obtained by e-mailing or on the VETS-100 homepage at: http://vets.dol.gov/vets100/
B-16. My company has no covered veterans, nor have I hired any new employees during the reporting period. What do I do?
Fill in the period covered, put zeroes in the columns, and return the form to the address indicated.
B-17. My company has had no covered Federal contracts in the past several years. Why am I continuing to receive VETS 100 reporting requirement mailings?
If an employer has not filed a VETS-100 Report in the past 3 years, they will be removed from the Federal contractor database, if that company is not shown to have a Federal contract listed by the Commerce Business Daily (CBD) or the Federal Procurement Data System (FPDS). If you continue to receive VETS-100 Reports after 3 years without being awarded a Federal contract, send a letter to U. S. Department of Labor, Veterans' Employment and Training Service, VETS-100 Reporting Office, P.O. Box 726, Lanham, Maryland 20703-0726, specifying that your company has not been awarded a Federal contract in more than 3 years, and request your company be removed from the Federal contractor data base.
B-18.What if I don't submit a VETS-100 Report?
Failure to submit a VETS-100 Report can lead to two types of sanctions for noncompliant Federal contractors or subcontractors. First, information on noncompliance that comes to the attention of the Department of Labor will be provided to the Office of Federal Contract Compliance Programs (OFCCP). OFCCP is the Federal agency within the Department of Labor that is responsible for compliance and enforcement of requirements mandated for Federal contractors including the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA). OFCCP generally attempts to negotiate a mutually acceptable remedy with the contractor in order to resolve this major violation.
The second, recently enacted Federal legislation forbids Federal Contracting Officers to award or modify Federal contracts unless the current VETS-100 Reports have been submitted. The Secretary of Labor makes a database available to Federal Contracting Officers listing the VETS-100 Reports received from Federal contractors and subcontractors.
B-19.Can an individual fall into multiple categories on the VETS-100 Report?
Yes, any veteran can fall into multiple categories on the VETS-100 Report. A veteran that falls into multiple categories must be counted in each category of the VETS-100 Report for which the individual veteran meets the defined criteria.
B-20. What changes are required to the affirmative action and reporting requirements for the Federal Contractor Program in accordance with the Jobs for Veterans Act (VJA, P.L. 107-228)?
The threshold for Federal contractors receiving contracts prior to December 1, 2003 is $25,000. VJA mandates the threshold of $100,000 for contracts beginning on or after December 1, 2003. Additionally, the target veteran groups have been revised to:
- Disabled veterans;
- Veterans who served on active duty in the Armed Forces during a war or in a campaign or expedition for which a campaign badge has been authorized;
- Veterans who, while serving on active duty in the Armed Forces, participated in a United States military operation for which an Armed Forces Service Medal was awarded pursuant to Executive Order No. 12985; and
- Recently Separated Veterans (redefined).
B-21. What is the effective date for the Jobs for Veterans Act (P.L 107-288)?
December 1, 2003.
B-22. Where can I find a copy of the Jobs for Veterans Act (P.L. 107-288)?
Official publications regarding P.L. 107-288 can be found on the U.S. Department of Labor web site at: www.dol.gov/vets/ http://www.dol.gov/vets/
B-23. When will the Department of Labor (DOL), Veterans' Employment and Training Service (VETS) publish new regulations?
VETS intent is to publish a Notice of Proposed Rulemaking (NPRM) as soon as possible followed by a Final Rule.
B-24. When will Federal contractors be required to report the new data?
Once Final Rule is cleared and effected.
B-25. Does the date of submission for the VETS-100 Report change?
No, the VETS-100 Report will remain due to VETS no later than September 30th annually.
B-26. What is a government contract?
A Government contract means any agreement or modification thereof between any contracting agency and any person for the furnishing of supplies or services or for the use of real or personal property including lease arrangements. The term "services", includes, but is not limited to the following services: Utility, construction, transportation, research, insurance and fund depository, irrespective of whether the government is the purchaser or seller. 41 CFR Part 60-250.2
B-27. We are a small bank so why are we required to file this report?
According to the regulations, the term "services" includes, but is not limited to insurance and fund depository, irrespective of whether the government is the purchaser or seller." (41 CFR 60-250.2). As such the following may serve as a guideline for financial institutions. If your facility meets one of these criteria, you may be required to file:
- Participation in any federal deposit insurance program including, but not limited to, Federal Deposit Insurance Corporation (FDIC) insurance premiums in any amount.
- Serve as a depository of federal funds.
- Sell and/or redeem United States Savings Bonds.
B-28. This is a health care facility. How do we qualify as a federal contractor?
You are required to submit a VETS-100 report only if the facility holds federal contracts or subcontracts of $25,000 or more. Involvement with federal grants, Medicare or Medicaid, alone, usually does not apply. If you are still in doubt about your status, call your regional or local OFCCP office.
B-29. This agency, as part of a state or local government, is involved in a federal contract or subcontract. Do we have to file for the entire state or local government?
No. According to the regulations, "the requirements of the affirmative action clause in any contract or sub-contract with state or local government (or any agency, instrumentality or subdivision thereof) shall not be applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract or subcontract." In other words, only file for the government agency involved in the contract. Federal agencies do not report.
B-30. Who is included in the "Total new hires, both veterans and non-veterans?"
This figure should include all permanent employees hired within the twelve month reporting period.
B-31. Can we double count those employees who are both special disabled and Vietnam era veterans?
B-32. My company has no Vietnam era veterans or special disabled veterans or I have hired no new employees during the reporting period. What do I do?
Fill in the period covered, put zeros in the columns, and return the form to the address indicated.
Note: VETS will provide additional information as available.
"Hiring location" is defined at 41 CFR 61-250.2 (b) (1). The specific definition of hiring location, according to the regulations, can be found at the following website:
41 CFR 61-250.2 (b) (1) http://www.dol.gov/cgi-bin/leave-dol?exiturl=http://a257.g.akamaitech.net/7/257/2422/12feb20041500/edocket.access.gpo.gov/cfr_2004/julqtr/41cfr60-250.2.htm&exitTitle=41_CFR_61-250.2
FYI, here they are:
Hiring location (identical to establishment as defined by the instructions for completing Standard Form 100, Equal Employment Opportunity Employer Information Report EEO-1) means an economic unit which produces goods or services, such as a factory, office, store, or mine. In most instances the establishment is at a single physical location and is engaged in one, or predominantly one, type of economic activity (definition adapted from the 1972 Standard Industrial Classification Manual). Units at different physical locations, even though engaged in the same kind of business operation should be reported as separate establishments. For locations involving construction, transportation, communications, electric, gas, and sanitary services, oil and gas fields, and similar types of physically dispersed industrial activities, however, it is not necessary to list separately each individual site, project, field, line, etc., unless it is treated by the contractor as a separate legal entity with a separate Employer Identification Number. For these types of activities, list as establishments only those relatively permanent main or branch offices, terminals, stations, etc., which are either (a) directly responsible for supervising such dispersed activities, or (b) the base from which personnel and equipment operate to carry out these activities. (Where these dispersed activities cross State lines, at least one such establishment should be listed for each State involved.) 41 CFR 61-250.2 (b) (1)
"Number of Employees?" is defined as:
The number of employees is the number of permanent full-time and part-time employees who were special disabled veterans or Vietnam-Era veterans employed as of the ending date of the selected payroll period. Insurance salesmen, seasonal and temporary workers, or employees obtained through hiring halls or agents are not included.
"Employees" is also defined at 41 CFR 61-250.2 (b) (2). The specific definition of employee, according to the regulations can be found at the following website:
41 CFR 61-250.2 (b) (2) http://www.dol.gov/cgi-bin/leave-dol?exiturl=http://a257.g.akamaitech.net/7/257/2422/12feb20041500/edocket.access.gpo.gov/cfr_2004/julqtr/41cfr60-250.2.htm&exitTitle=41_CFR_61-250.2
FYI, here they are:
The term employee shall not include persons who are hired on a casual basis for a specified time, or for the duration of a specified job, and work on remote or scattered sites or locations where it is not practical or feasible for the employer to make a visual survey of the work force within the report period; for example, persons at a construction site whose employment relationship is expected to terminate with the end of the employee's work at the site; persons temporarily employed in any industry other than construction, such as mariners, stevedores, waiters/waitresses, movie extras, agricultural laborers, lumber yard workers, etc., who are obtained through a hiring hall or other referral arrangement, through an employee contractor or agent, or by some individual hiring arrangement; or persons on the payroll of a temporary service agency who are referred by such agency for work to be performed on the premises of another employer under that employer's direction and control. 41 CFR 61-250.2 (b) (2)
"New Hires" are defined as:
A "new hire" is anyone who was hired as a permanent employee during your reporting period even if they are not with you now due to layoff, firing, illness or death. The "permanent" can be permanent full time or permanent part time.
(1) Insert a request for self-identification in pay envelopes or conduct a VETS-100 employment survey.
(2) Request voluntary self-identification on employment applications.