Internet Applicant Grace Period Provides Breathing Room
03/05/07
The Internet Applicant Rule requires federal contractors to treat individuals using the Internet to apply for a job the same as those using traditional methods, such as mailing a resume. Federal contractors must solicit and collect the gender, race and ethnicity of each Internet applicant or traditional applicant, depending on the position to be filled. Although the rule became effective February 6, 2006, the Office of Federal Contract Compliance Programs (OFCCP) added a 90-day grace period. That means contractors have a better chance of not being cited immediately for purely technical recordkeeping violations.
Many HR professionals are receiving the Internet Applicant Rule with cautious optimism. The rule may result in a better hiring process for companies, because it forces HR departments to be precise in advertising what the minimum qualifications are. From the government’s perspective, the applicant information that OFCCP collects from contractors helps to identify which workplaces to investigate for possible employment discrimination.
Under OFCCP’s discretion, a contractor will not be cited for a technical recordkeeping violation of the rule through May 7, provided the contractor:
- Demonstrates that it is taking reasonable steps to comply with the rule, including a projected date of compliance, and
- Collects and maintains records that follow established procedures consistent with recordkeeping requirements before the Internet Applicant Rule existed.
What is the definition of an applicant?
An Internet applicant is an individual who meets the following four criteria:
- The individual submits an expression of interest in employment through the Internet or related electronic technologies. These include e-mail, resume databases, job banks, electronic scanning systems, applicant tracking systems and applicant service providers.
- The contractor considers the individual for employment in a particular position.
- The individual does not remove himself or herself from further consideration or otherwise indicate that he or she is no longer interested in the position.
- The individual’s expression of interest indicates the individual possesses the basic qualifications for the job.
The “basic qualifications” an applicant must possess are those that the contractor advertised to potential applicants, or criteria that the contractor established in advance. The basic qualifications must be noncomparative features of a job seeker. For example, a qualification of three years of experience in a particular position is a noncomparative qualification. A qualification that an individual have one of the top five number of years of experience among the applicants is a comparative qualification. Qualifications also must be objective (a bachelor’s degree in accounting, for instance, but not “a technical degree from a good school”), and relevant to performance of the particular position.
Amendments to recordkeeping requirements under the Internet Applicant Rule apply to data on hiring decisions made on or after February 6, 2006. If a contractor had an affirmative action program (AAP) in place before February 6, the contractor does not have to amend its AAP to comply with the rule.
The Internet: a powerful recruiting tool
Because of the increasing reliance on the Internet by employers and job applicants, the rule’s impact is widespread. Some employers see the Internet as an opportunity for more effective compliance in a changing regulatory environment. Others are concerned about being able to compete in a challenging labor market while trying to comply with the rule. Nevertheless, employers expect to drive a considerable amount of applicant traffic through the Web this year.
In 2005, the Internet produced an aggregate 51 percent of new hires. Employer Web sites were the single best source of new hires last year (21 percent), followed by employee referrals (19 percent) and general electronic job boards (15 percent).*
*Source: 2006 Direct Employers Association Recruiting Trends Survey, Booz Allen Hamilton, February 2006.