[Federal Register Volume 68, Number 31 (Friday, February 14, 2003)]
[Notices]
[Pages 7617-7618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3671]



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DEPARTMENT OF LABOR

Veterans' Employment and Training Service

RIN 1293-AA07


Annual Report From Federal Contractors

AGENCY: Veterans' Employment and Training Service, Department of Labor.

ACTION: Notice of guidance.

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SUMMARY: The Veterans' Employment and Training Service (VETS) is 
providing guidance on methodologies for calculating the maximum and 
minimum number of employees for the Federal Contractor Veterans' 
Employment Report VETS-100.

EFFECTIVE DATE: This guidance is effective February 14, 2003.

FOR FURTHER INFORMATION CONTACT: Norman Lance, Chief, Investigation and 
Compliance Division, VETS, at (202) 693-4731 or by e-mail at [email protected]. Individuals with hearing impairments may call (800) 
670-7008 (TTY/TDD).

SUPPLEMENTARY INFORMATION: 

    Authority: 38 U.S.C. 4212(d).

    Background: The Vietnam Era Veterans' Readjustment Assistance Act 
of 1974 , as amended, (VEVRAA) contains affirmative action and 
reporting requirements for Federal contractors and subcontractors 
regarding several classes of protected veterans. One VEVRAA requirement 
is that covered Federal contractors and subcontractors file an annual 
Federal Contractor Veterans' Employment Report VETS-100 (VETS-100 
Report). Prior to the enactment of the Veterans Employment 
Opportunities Act of 1998 (VEOA), the VETS-100 Report required 
contractors to report, for each hiring location, the number of 
protected veterans by job category, and number of new hires, including 
protected veterans hired during the reporting period covered by the 
report. VEOA amended the VEVRAA's reporting requirements by adding the 
requirement that the maximum number and minimum number of persons 
employed during the reporting period be included in the VETS-100 
Report.
    VETS published a Notice of Proposed Rulemaking (65 FR 59684, 
October 5, 2000) to implement the provisions of VEOA, including the 
requirement for reporting the maximum and minimum number of employees. 
The Notice of Proposed Rulemaking did not contain guidance on how 
covered contractors were to determine the maximum and minimum number of 
employees. A commenter asserted that the proposed rule was unclear 
about how the maximum and minimum number of employees had to be 
determined, and asked for clarification. To respond to the concerns of 
the commenter, VETS added clarifying language to the final rule (66 FR 
51998, October 11, 2001) explaining how the maximum and minimum number 
of employees had to be determined.
    After publication of the final rule, it was brought to the 
attention of VETS that the revised language might have inadvertently 
increased the record keeping burden on some contractors. To permit 
contractors flexibility in how they determine the maximum and minimum 
number of employees, VETS published an Interim Final Rule (66 FR 65452, 
December 19, 2001) that withdrew the language specifying how 
contractors were to determine the maximum and minimum number of 
employees. The basic statutory requirement to report the maximum and 
minimum number of employees remained.
    In the preamble to the interim final rule, VETS requested comments 
about the methods covered contractors and subcontractors proposed to 
use to calculate the maximum and minimum number of employees. VETS 
intended to consider these comments in the development of guidance or 
regulations about the issue. VETS was concerned that the request for 
comments solely within the preamble to the interim final rule might be 
overlooked. Consequently, VETS published a Notice on March 8, 2002 (67 
FR 10804) reiterating the request for comments about how to determine 
the maximum and minimum number of employees.
    Development of Guidance: VETS received four comments: two from 
human resource consultants, one from an association representing human 
resource professionals, and one from an association that represents 
employers. Commenters described the practical difficulties with 
creating a ``one size fits all'' procedure for reporting the maximum 
and minimum number of employees. For example, some contractors utilize 
payroll records to track the number of employees while others use 
headcounts. Some contractors maintain records by organizational unit 
while others maintain records by physical location. Some contractors 
count everyone on payroll as ``active employees'' while others count as 
employees only those actually paid in a particular period, and do not 
count employees on temporary leaves of absence or on other unpaid leave 
status. Two commenters recommended methodologies for computing the 
maximum and minimum number of employees. Additionally, one commenter 
requested that VETS eliminate the maximum and minimum number of 
employees reporting requirement. The final commenter asked how to 
determine the maximum and minimum number when an employer exercises the 
option to consolidate hiring locations by state.
    VETS is unable to eliminate the reporting requirement for the 
maximum and minimum number of employees because this reporting 
requirement is mandated by VEOA. As discussed below, contractors 
determining the maximum and minimum number of employees when exercising 
the option to consolidate hiring locations by state may calculate their 
maximum and minimum number of employees by any reasonable method of 
computation. We appreciate receiving the thoughtful comments. We have 
considered all concerns and recommendations made by the commenters in 
developing VETS policy.
    Guidance: VETS understands that contractors and subcontractors have 
developed many different methods to count the maximum and minimum 
number of employees in their workforces during the VETS-100 reporting 
period. Consequently, VETS has decided to permit contractors to utilize 
any reasonable method for contractors to compute the maximum and 
minimum number of employees in their workforces. Consideration of 
whether a procedure is reasonable will include how the employer 
normally maintains records about its employees and whether the employer 
has been consistent in its methodology for counting employees across 
reporting cycles.
    The following are examples of methodologies identified in the 
public comments that VETS determined would be reasonable approaches for 
computing the maximum and minimum number of employees for the VETS-100 
Report. These examples are provided as illustrations only and other 
reasonable methods are considered acceptable. Further, the examples 
assume that they are based on the current record keeping practice of 
the employer and that the employer consistently uses the same method 
from year to year.

Methodology Based on Organizational Structure

    * The number of active employees are identified each month by job 
categories within an establishment and then totaled. At the end of the 
reporting period, the largest number recorded is

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the maximum number of employees and the smallest number recorded is the 
minimum number of employees for each location.

Methodologies Based on Payroll Systems

    * The payroll system identifies the number of active employees for 
each day for each location and saves that information for the whole 
year. At the end of the reporting period, the largest number of active 
employees recorded is the maximum number of employees and the smallest 
number of active employees recorded is the minimum number of employees.
    * Payroll system data is collected on a quarterly basis about the 
number of employees at each establishment who either were paid wages or 
benefits, or were eligible to be paid wages or benefits, that quarter. 
The number of employees in the quarter with the largest number of 
employees is the maximum number and the number of employees in the 
quarter with the smallest number of employees is the minimum number.
    * Payroll information is collected on a monthly basis about the 
number of employees at each establishment who either were paid wages or 
benefits, or were eligible to be paid wages or benefits, that month. 
The number of employees in the month with the largest number of such 
employees is the maximum number and the number of such employees in the 
month with the smallest number of employees is the minimum number of 
employees.
    * A single payroll system for all employees in a single 
establishment is utilized. Payroll records for each pay period are 
maintained. The number of employees in the payroll period with the 
largest number of employees would be the maximum number of employees 
and the number of employees in the payroll period with the fewest 
number of employees would be the minimum number of employees for the 
reporting period.

Methodology Based on Company Headcount

    * Many employers maintain daily establishment headcount records for 
financial planning and budgeting purposes. The number of employees on 
the day with the highest headcount would be the maximum number of 
employees and the number of employees on the day with the least number 
of employees would be the minimum number.
    The above methodologies are provided as guidance only and any 
reasonable method of computation of the maximum and minimum number of 
employees is considered acceptable.

    Signed at Washington, DC, this 10th day of February, 2003.
Frederico Juarbe Jr.,
Assistant Secretary of Labor for Veterans' Employment and Training 
Service.
[FR Doc. 03-3671 Filed 2-13-03; 8:45 am]
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