Wednesday, April 4, 2012

Labor Department Hiring Proposal is Unworkable


When it comes to a successful company, the right mix of people is as important as the right mix of skills. Different backgrounds bring vital perspectives that help with decision making and innovation. In the government contracting world, affirmative action requirements have helped ensure an innovative environment persists.

Until now, by both reason and law, the government has not set a hiring quota for ethnic, racial and other demographic groups. But that could change with the December 9, 2011 Labor Department proposed rule seeking to establish a uniform national utilization goal requiring government contractors to ensure at least 7 percent of their workers are disabled employees.

As written, the proposal, which PSC recently submitted comments on, is simply unworkable. Imposing a uniform utilization goal in every region of the country and across all job groups ignores the fact that each community and each job group has its own unique demographics. Complying with the goal may be impossible in some industry categories and in some job skills. Furthermore, while the rule establishes a hiring “goal,” Congress, agencies and the public often interpret those numbers as mandates.
The proposal also ignores the difficulties unique to implementing affirmative action for disabled individuals and in coming to an accurate estimate of the protected class as many covered disabilities are not visible and many individuals may choose not to disclose their disabilities for privacy reasons. Furthermore, companies cannot confirm certifications with individuals because of laws put in place to protect minority groups from discrimination. These same laws could open contractors to lawsuits if contractors comply with the proposed rule’s requirements to capture data on the number of interviewees who were disabled. It is logical to expect that a disabled person not offered the job may conclude that any question about their disability contributed to the negative hiring decision and thus was discriminated against.
Additionally, several of the requirements in the regulation are burdensome, mandating the collection of large amounts of data that are not clearly valuable and the retention of that data for years longer than necessary.
Furthermore, the introduction of a mandated set of recruitment sources disrupts the careful mix of sources that contractors select on their own under the current approach. The rule offers no evidence that allowing contractors to pick their own recruitment sources has failed.
While it is important to ensure the full participation of people with disabilities in the workforce, it is unclear whether parts of the new proposed regulation are necessary or appropriate to achieve that goal.