DOL Extends Filing Deadline for 2011 VETS-100/100A Reports; Financial Institutions Will No Longer Sell U.S. Savings Bonds in 2012 & May No Longer Be Federal Contractors

Labor Department Extends Deadline for Filing of 2011 VETS-100/100A Reports

Due to technical problems with its online registration and filing system, the Department of Labor (DOL) has extended the filing deadline for 2011 VETS-100/100A Reports from September 30, 2011 to November 30, 2011.  DOL had planned to begin accepting electronic submissions on August 1, 2011, but technical problems have derailed that plan.  At this time, DOL anticipates that its electronic filing system for VETS-100/100A Reports will go online on October 1, 2011 and contractors will have until November 30, 2011 to file.

U.S. Treasury Announces Financial Institutions Will No Longer Sell U.S. Savings Bonds

The United States Treasury Department’s Bureau of the Public Debt (“Public Debt”) recently announced that as of January 1, 2012, paper savings bonds will no longer be sold at financial institutions.  As of that date, savings bonds will only be available for purchase electronically through TreasuryDirect®, a secure, web-based system operated by Public Debt.  Financial institutions currently subject to federal affirmative action obligations solely by virtue of their sale of savings bonds should reevaluate their compliance obligations in light of this change.

Affirmative Action Requirements for Financial Institutions

Under Executive Order 11246, a financial institution is required to develop and maintain a written Affirmative Action Plan (AAP) if it has 50 or more employees and it:

• Has a Federal contract or subcontract worth $50,000 or more;
• Serves as a depository of Federal funds in any amount; or
• Is a financial institution that is an issuing and paying agent for U.S. savings bonds and savings notes in any amount.

With this change, financial institutions will no longer be issuing and paying agents of U.S. Savings bonds and thus will not be required to develop and maintain written AAPs on that basis alone.  Financial institutions who serve as a depository of Federal funds, participate in Federal Deposit Insurance Corporation (FDIC) or National Credit Union Association (NCUA) programs, or have a Federal contract or subcontract worth $50,000, are not affected by this change and should continue to prepare written AAPs.

What Contractors Should Do Now

Financial institutions that are currently Federal contractors or subcontractors for affirmative action purposes should consult with counsel to reassess their affirmative action obligations in light of this upcoming change. 

By: Val Hoffman and Regina Grattan

Val Hoffman is a partner in Seyfarth’s Chicago and Los Angeles offices and Regina Grattan is counsel in the firm’s Sacramento office.  If you would like further information, please contact your Seyfarth Shaw LLP attorney, Val Hoffman at vhoffman@seyfarth.com, Regina Grattan at rgrattan@seyfarth.com or or any member of Seyfarth’s OFCCP & Affirmative Action Compliance Team.