Skip to main content
Looking for help? Contact our Help & Support Team

Payrolling terms with TCWGlobal

What Is Affirmative Action?

Affirmative action is a set of deliberate measures intended to improve equal access to employment or other opportunities for people who have faced barriers or are underrepresented. In the workplace, it can involve examining how people are recruited, selected, developed and advanced. Employers may then address obstacles identified in those processes. The term can also refer to formal programs required by particular laws or contracts rather than a general workplace goal. In the United States, the rules depend on the employer and the program. Some federal contractor requirements changed in 2025, while separate legal duties concerning veterans and people with disabilities remain in effect. Affirmative action does not mean that every employer must use preferences in hiring. Nor should a candidate’s protected characteristic replace job-related qualifications. Understanding the legal basis and design of a program is essential.

Table of Contents

How Does Workplace Affirmative Action Work?

A workplace program starts by examining how employment decisions are made and whether people have fair access to opportunities. An employer may review recruitment sources and selection procedures. It may also examine access to training or promotion patterns. The results can guide practical changes such as broadening recruitment outreach or removing unnecessary requirements that screen out qualified candidates. The focus is on improving access and addressing identified problems. It is not on assuming that any individual’s experience or qualifications can be inferred from group membership.

Some programs have formal written requirements. These may call for analysis and documented objectives. They may also assign responsibility for implementation and require periodic review. A goal used to measure progress is not necessarily a quota or a guaranteed outcome. Employers should distinguish between expanding access to qualified applicants and making an employment decision based on a protected characteristic. Nondiscrimination rules still apply. A program’s permissible design depends on the law and facts that govern it.

In practice, reviewing a process can help an employer find barriers without presuming that unlawful discrimination has occurred. For example, an employer might assess whether job requirements are connected to actual duties or whether outreach reaches a sufficiently broad pool of potential applicants. Any changes should be based on the applicable legal standards and reliable information. Employers should also monitor whether a change improves access without creating new obstacles or compromising job-related selection criteria.

Who Is Covered by Affirmative Action Requirements?

Coverage depends on the particular law and contract as well as the employer. A federal contractor’s obligations may differ from those of a private employer without a government contract. State or local rules can also impose requirements that do not apply nationwide. For that reason, the phrase “affirmative action” does not identify one uniform program. It also does not tell an employer by itself whether a written plan is required.

Federal contractor rules changed significantly in 2025. Executive Order 14173 revoked Executive Order 11246 and directed contractors to wind down compliance with that order’s affirmative-action scheme by April 21, 2025. The Department of Labor says Section 503 of the Rehabilitation Act and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) remain in effect. Those laws include affirmative-action obligations for covered contractors concerning people with disabilities and protected veterans. The DOL explains the continuing Section 503 requirements and provides its current description of the OFCCP’s authority and program changes.

Employers should confirm current coverage against official guidance and qualified legal advice rather than rely on older descriptions of federal contractor obligations. They should identify the contract and law that may apply before drawing conclusions about their duties. Coverage can depend on thresholds and other details specific to a program. A requirement applying to one type of contractor does not necessarily apply to another employer or contract.

How Is Affirmative Action Different from Equal Opportunity?

Equal employment opportunity is the principle that people must not be unlawfully discriminated against in employment. Affirmative action is generally more proactive. It may involve reviewing practices and finding barriers. It can also include steps to widen access. A workplace can pursue fair access and inclusion without treating those ideas as permission to make decisions unlawfully based on protected characteristics.

Affirmative action is also different from a broad diversity effort. A diversity effort may aim to build a workplace where people with different backgrounds can participate and contribute. A formal affirmative-action program can have specific legal triggers and documentation requirements. The terms may overlap in ordinary conversation, but they do not always describe the same obligations. Employers should be precise about whether they mean a general workplace initiative or a program required by law or contract.

Court decisions about college admissions should not automatically be treated as rules for employment. The EEOC has noted that the Supreme Court’s 2023 decision concerning higher-education admissions arose under a different legal context from workplace decisions. Employers still need to follow the employment laws that apply to their decisions. Those laws can regulate hiring and other employment practices regardless of whether an employer describes its efforts as affirmative action, equal opportunity or inclusion.

What Does an Affirmative Action Plan Include?

An affirmative action plan, or AAP, is a written program used to set out actions and review processes. Depending on the law that requires it, a plan may describe the employer’s workforce analysis and outreach methods. It may also identify who is responsible for implementation and which records are used to assess progress. A plan should connect its measures to the applicable requirements and the issues identified by its analysis. It should not rely on assumptions about people based on race, sex, disability or veteran status.

Requirements differ by program. For example, the DOL describes written AAP duties under Section 503 for certain federal contractors that meet applicable employee and contract thresholds. VEVRAA has its own coverage rules and duties. Thresholds and plan components should be checked against current regulations because a rule for one contractor program may not apply to another. Employers should verify current requirements rather than assume that an old plan or template is still sufficient.

To determine whether a written plan is required, an employer should first identify the relevant contract and statute. It should then verify current requirements with the responsible agency or legal counsel. A useful plan is connected to the particular program that applies. It also supports consistent implementation by making responsibilities and review practices clear. Documentation should accurately reflect the employer’s process and should be handled in accordance with applicable recordkeeping requirements.

What Does Affirmative Action Mean for Contingent Work?

Affirmative action can matter when an organization fills temporary or project-based roles as part of its broader workforce. Recruitment channels and job criteria can affect who learns about an opportunity. Selection steps can also affect who can qualify. Reviewing these processes can help identify avoidable barriers while keeping requirements tied to the work. A contingent workforce program may need to make clear which organization handles recruiting and selection records. It may also need to clarify who is responsible for any required reporting.

Responsibilities depend on the arrangement and on the legal rules that apply. A staffing supplier or other workforce partner should not be assumed to take over a client’s legal duties simply because it supports hiring or payroll. Organizations should document who makes selection decisions and who maintains relevant records. This clarity can help the parties carry out their respective responsibilities and respond accurately to applicable recordkeeping requirements.

Where an affirmative-action requirement applies, the organization should confirm whether contingent roles and related records fall within that particular program’s scope. The answer depends on the applicable law and the details of the workforce arrangement. A review may also identify gaps in how job opportunities are communicated or how selection decisions are documented. This is a practical connection to contingent workforce management: clear processes and assigned responsibilities can support consistent hiring operations while keeping legal obligations with the parties responsible for them.

Need help with EOR, MSP, or VMS?

We've got you covered!

TCWGlobal handles worker classification, payroll, global workforce management, compliance, hiring, and benefits. From HR outsourcing to talent acquisition, we make cross-border employment a breeze.

Let us tackle contracts, taxes, and risk while you focus on growing your business.

Group 355 copy-3