[Federal Register Volume 79, Number 36 (Monday, February 24, 2014)]
[Proposed Rules]
[Pages 10063-10075]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-03503]


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DEPARTMENT OF LABOR

Veterans' Employment and Training Service

41 CFR Parts 61-250 and 61-300

RIN 1293-AA20


Annual Report From Federal Contractors

AGENCY: Veterans' Employment and Training Service (VETS), Labor.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Veterans' Employment and Training Service (VETS) is 
publishing this Notice of Proposed Rulemaking (NPRM) to propose 
revisions to the regulations implementing the reporting requirements 
under the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as 
amended, (``VEVRAA''). VEVRAA requires Federal contractors and 
subcontractors to annually report on the total number of their 
employees who belong to the categories of veterans protected under the 
Act, and the total number of those employees who were hired during the 
period covered by the report. The NPRM proposes rescinding the 
regulations which prescribe the

[[Page 10064]]

reporting requirements applicable to Government contracts and 
subcontracts entered into before December 1, 2003, because VETS 
believes the regulations have become obsolete.
    In addition, the NPRM proposes revisions to the regulations which 
prescribe the reporting requirements applicable to Government contracts 
and subcontracts of $100,000 or more entered into or modified on or 
after December 1, 2003. The NPRM proposes revising the annual report 
prescribed by the regulations to require contractors and subcontractors 
to report the specified information for protected veterans in the 
aggregate rather than for each of the categories of veterans protected 
under the statute. The NPRM also proposes renaming the annual report 
prescribed by the regulations the Federal Contractor Veterans' 
Employment Report VETS-4212 (``VETS-4212 Report''). Further, the NPRM 
proposes to revise regulations that address the definitions of terms 
used in the regulations, the text of the reporting requirements clause 
included in Government contracts and subcontracts, and the methods of 
filing the annual report on veterans' employment. VETS proposes that 
contractors begin complying with the reporting requirements in the 
revised regulations one year after the effective date of the final 
rule.

DATES: To be assured of consideration, comments must be received on or 
before April 25, 2014.

ADDRESSES: You may submit comments concerning the NPRM, identified by 
RIN number 1293-AA20, by any of the following methods:
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions for submitting comments.
     Fax: (202) 693-1304 (for comments of six pages or less).
     Email: [email protected]. Include ``RIN number 1293-
AA20'' in the subject line of the message.
     Mail: William Torrans, Office of National Programs (ONP), 
Veterans' Employment and Training Service, Room S-1316, 200 
Constitution Avenue NW., Washington, DC 20210; Telephone (202) 693-
4731.
    Comments to OMB concerning information collection requirements 
should be directed to: Office of Information and Regulatory Affairs, 
Attn: OMB Desk Officer for the Department of Labor, Veterans' 
Employment Training Service, Office of Management and Budget, Room 
10235, Washington, DC 20503, Telephone: 202-395-6929/Fax: 202-395-6881 
(these are not toll-free numbers), email: [email protected].
    Please submit your comments by only one method. Receipt of 
submissions will not be acknowledged; however, the sender may request 
confirmation that a submission has been received by telephoning VETS at 
(202) 693-4731 or TTY (202) 693-4760. (These are not toll-free 
numbers).
    Instructions: The Department's policy is that all comments 
received, including any personal information provided, are considered 
part of the public record and available for public inspection online at 
http://www.regulations.gov and in the Department's public docket. Those 
submitting comments should not include any personally identifying 
information (such as your name, address, etc.) they do not desire to be 
made public or information for which a claim of confidentiality is 
asserted because those comments and/or transmittal emails will be made 
available for public inspection and copying. Parties who wish to 
comment anonymously may do so by submitting their comments via 
www.regulations.gov, leaving the fields that would identify the 
commenter blank and including no identifying information in the comment 
itself. Comments submitted via www.regulations.gov are immediately 
available for public inspection.
    Docket: For access to the docket to read background documents or 
comments received go to the Federal eRulemaking portal at http://www.regulations.gov. The docket materials will be available for public 
inspection during normal business hours at Room S-1316, 200 
Constitution Avenue NW., Washington, DC 20210, or electronically at 
http://www.regulations.gov. Upon request, individuals who require 
assistance to review comments will be provided with appropriate aids 
such as readers or print magnifiers. Copies of this NPRM will be made 
available in the following formats: large print, electronic file on 
computer disc, and audiotape. To schedule an appointment to review the 
comments and/or to obtain this NPRM in an alternate format, please 
contact VETS at the telephone numbers or address listed above.

FOR FURTHER INFORMATION CONTACT: General information and media 
inquiries: Contact William Torrans, Office of National Programs, 
Veterans' Employment and Training Service, U.S. Department of Labor, 
200 Constitution Avenue NW., Room S-1316, Washington, DC 20210, 
[email protected], (202) 693-4731 (this is not a toll-free 
number).

SUPPLEMENTARY INFORMATION:

Background

    The Vietnam Era Veterans' Readjustment Assistance Act of 1974, as 
amended, (``VEVRAA''), 38 U.S.C. 4212(d), obligates Federal contractors 
\1\ that are subject to the statute's affirmative action provisions in 
38 U.S.C. 4212(a) to report annually to the Secretary of Labor on their 
employees and new hires who belong to the specific categories of 
veterans protected under the statute. VETS has promulgated two sets of 
regulations to implement statutory reporting requirements under VEVRAA 
before and after amendment in 2002 by the Jobs for Veterans Act, 
(``JVA'') (Pub. L. 107-288).
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    \1\ Unless otherwise specified, the term ``contractors'' refers 
to Federal contractors and subcontractors.
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    Prior to the JVA amendments, VEVRAA required contractors to 
annually report the number of employees in their workforces and new 
hires during the reporting period, by job category and hiring location, 
who are special disabled veterans, veterans of the Vietnam era, 
recently separated veterans, and veterans who served on active duty 
during a war or in a campaign or expedition for which a campaign badge 
has been authorized. The part 61-250 regulations implement these 
reporting requirements and apply to contracts of $25,000 or more 
entered into before December 1, 2003, unless they were modified on or 
after that date and have a value of $100,000 or more. The existing part 
61-250 regulations require covered contractors to use the VETS-100 
Federal Contractor Veterans' Employment Report (``VETS-100 Report''), 
and provide data regarding veterans' employment by the four categories 
of veterans protected under VEVRAA pre-JVA and by the nine occupational 
categories used in the EEO-1 Standard Employer Information Report EEO-1 
Report (``EEO-1 Report'') prior to its revision in 2007.
    The JVA amendments increased from $25,000 to $100,000, the amount 
of the contract that triggers the reporting requirement, and changed 
the categories of veterans protected under the Act. As amended by the 
JVA, VEVRAA requires contractors to report the number of employees in 
their workforces and new hires during the reporting period, by job 
category and hiring location, who are ``qualified covered veterans.'' 
38 U.S.C. 4212(d)(1). The statute defines ``covered veteran'' as any of 
the following veterans: disabled veterans, Armed Forces service medal 
veterans, veterans who served on active duty during a war or in a 
campaign or expedition for

[[Page 10065]]

which a campaign badge has been authorized, and recently separated 
veterans. 38 U.S.C. 4212(a)(3). The JVA reporting requirements are 
implemented by the regulations in part 61-300 and are applicable to 
Government contracts of $100,000 or more entered into on or after 
December 1, 2003. In addition, a contract that was entered into before 
December 1, 2003, is subject to the part 61-300 regulations if it was 
modified on or after December 1, 2003, and meets the contract dollar 
threshold of $100,000 or more.
    The regulations in part 61-300 require contractors to use the 
Federal Contractor Veterans' Employment Report VETS-100A (``VETS-100A 
Report'') to provide the specified information on veterans' employment. 
The VETS-100A Report was modeled after the VETS-100 Report, and as a 
result, contractors are asked to provide data on veterans' employment 
by the ten occupational categories and subcategories found on the 
revised EEO-1 Report and by each of the four categories of veterans 
protected under the JVA amendments.
    The instructions for completing the VETS-100 and VETS-100A Reports 
are substantially similar. Reporting is based on the number of veterans 
in each category rather than the number of employees protected by 
VEVRAA. So, for example, an employee who is a disabled veteran and an 
Armed Forces service medal veteran would be counted in each category. 
Further, the existing VETS-100 and VETS-100A Reports do not ask 
contractors to provide the total number of protected veterans in their 
workforces. Nor do they ask contractors to report the total number of 
protected veterans who were hired during the reporting period. 
Moreover, because employees may be counted in more than one veteran 
category it is not possible for the Government to calculate the total 
number of protected veterans employed or newly hired in the 
contractor's workforce based on the data submitted in the existing 
VETS-100 and VETS-100A Reports. VETS believes it would be preferable 
for contractors to report the total number of protected veterans 
employed and hired by Federal contractors in the annual reports 
required under VEVRAA, rather than the total number of veterans 
protected under each category. Accordingly, VETS is proposing to revise 
the manner in which contractors report on their employment and hiring 
of employees who belong to the categories of veterans protected under 
VEVRAA.
    For example, data showing the total number of protected veterans 
employed and newly hired during the reporting period would be more 
appropriate for implementing the amendment to the reporting provisions 
under VEVRAA made by the Honoring America's Veterans and Caring for 
Camp Lejeune Families Act of 2012, (Pub. L. 122-154). Section 708 of 
the Camp Lejeune Families Act requires VETS to publicly disclose on the 
agency's Web site the information reported in VETS-100 and VETS-100A 
Reports. The existing VETS-100 and VETS-100A Reports ask contractors to 
provide, by job category and hiring location, the number of employees 
in each of the specified categories of veterans and in many instances 
the category might include only one employee. In their current format, 
the reports disclose the number of employees who are disabled veterans 
and in some cases it would be possible for others to discern their 
identity. For instance, where the VETS-100A Report shows for the hiring 
location a total of two employees in the Executive/Senior Level 
Officials and Managers category and one disabled veteran, the identity 
of the disabled veteran could be easily discovered. While some 
employees may have no problem with co-workers knowing they are 
veterans, they may prefer to keep private their status as disabled 
veterans.
    In addition, VETS believes its annual report to Congress regarding 
the implementation of the reporting requirements under VEVRAA would be 
more meaningful if VETS could provide data regarding the total number 
of protected veterans employed and newly hired by Federal contractors. 
VETS currently includes in the annual report to Congress required under 
38 U.S.C. 4107 data showing the number of veterans in each of the 
categories found on the VETS-100 and VETS-100A Reports. If data on the 
total number of protected veterans employed and newly hired by Federal 
contractors were available, it would be feasible to include in the 
annual report cross-year comparisons of Federal contractors' employment 
and hiring of protected veterans. Information on the total number of 
protected veterans employed in Federal contractor workforces from year 
to year would show trends in their employment of protected veterans, 
and analyses of those trends could be used to assess the extent to 
which Federal contractors are providing employment opportunities to 
protected veterans.
    Further, data showing the total number of protected veterans 
Federal contractors employed or hired during the reporting period would 
better assist contractors in complying with their affirmative action 
obligations under VEVRAA. Contractors subject to the reporting 
requirements under VEVRAA are also required under the Act to take 
affirmative action to employ and advance in employment protected 
veterans. 38 U.S.C. 4212(a). The Department of Labor's Office of 
Federal Contract Compliance Programs (OFCCP) administers and enforces 
the affirmative action requirements under VEVRAA. OFCCP also has 
promulgated two sets of implementing regulations: The regulations found 
in 41 CFR part 60-250 implementing VEVRAA prior to amendment by the 
JVA, and regulations found in 41 CFR part 60-300 implementing the JVA 
amendments.
    OFCCP's existing regulations require contractors with 50 or more 
employees and contracts that meet the dollar thresholds specified in 
the regulations ($50,000 or more under the part 60-250 regulations and 
$100,000 or more under the part 60-300 regulations) to develop and 
maintain affirmative action programs. As part of their affirmative 
action programs, contractors are required to undertake appropriate 
outreach and recruitment activities that are designed to effectively 
recruit protected veterans. 41 CFR 60-250.44(f) and (g) and 60-
300.44(f) and (g). In addition, OFCCP's regulations require contractors 
to develop and implement audit and reporting systems to measure the 
effectiveness of their affirmative action programs and the degree to 
which their objectives have been attained. 41 CFR 60-250.44(h) and 60-
300.44(h). VETS believes that it would be most appropriate for Federal 
contractors to use data showing the total number of protected veterans 
employed and newly hired during the reporting period to monitor the 
success of their recruitment and outreach efforts to attract protected 
veterans.
    VETS recognizes that the proposed changes to the manner in which 
contractors report on their employment of protected veterans may 
require contractors to change their recordkeeping systems. Accordingly, 
to ensure that contractors have sufficient time to make any needed 
adjustments, VETS proposes that contractors begin complying with the 
reporting requirements in the revised part 61-300 regulations one year 
after the effective date of the final rule.

Section-by-Section Analysis

41 CFR Part 61-250

    VETS is proposing to rescind as obsolete the regulations in part 
61-250. As previously mentioned, the part 61-250 regulations apply only 
to contracts and subcontracts of $25,000 or more entered into prior to 
December 1, 2003 that have not been modified since that

[[Page 10066]]

time and have a value of $100,000 or more. VETS does not believe any 
contracts subject to the part 61-250 regulations exist today because 
the Federal Acquisition Regulations (FAR) generally limit the length of 
government contracts to a maximum period of five years.\2\ Thus, unless 
special excepted contracts exist, contracts covered exclusively by the 
part 61-250 regulations have already expired or will have expired by 
the time the final rule rescinding the regulations becomes effective. 
Any existing contract that was entered into before December 1, 2003, 
would have been modified since that date, and if valued at $100,000 or 
more would be covered under the part 61-300 regulations. OFCCP 
published a final rule on September 24, 2013 (78 FR 58613) to revise 
regulations implementing the affirmative action provisions of VEVRAA. 
The final rule rescinds the regulations in part 60-250, which apply to 
contracts entered before December 1, 2003. In the final rule's 
preamble, OFCCP stated that the rescission of the part 60-250 
regulations was supported by the commenters, many of whom echoed the 
agency's belief that any contracts for $25,000 or more entered into 
prior to December 1, 2003, have either terminated or since been 
modified (which, if over $100,000 would be covered under OFCCP's part 
60-300 regulations). (78 FR 58619)
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    \2\ FAR 16.505(c)(1) stipulates that indefinite-delivery task-
order contracts for advisory and assistance services cannot exceed 
five years. FAR 17.104(a) establishes a maximum length of five years 
for multi-year contracts. For contracts with options, FAR 17.204(e) 
states that the total of the base and options periods cannot exceed 
five years. FAR 17.204(e) provides an exception to the five-year 
limit for information technology (IT) contracts and special cases 
approved in accordance with agency procedures. Further, FAR 22.1002-
1 provides that contracts for services that are subject to the 
Services Contract Act may not exceed five years.
    Although the FAR exempts certain IT contracts from the five-year 
maximum, agencies may limit the duration so that they can re-compete 
the contract to take advantage of improvements in service delivery 
and supplies that subsequently occur in the IT industry. See e.g., 
Office of Personnel Management, Contracting Policy No. 17.204 
Contract Length, January 7, 2007, available at www.opm.gov/DoingBusiness/contract/.../17.204ContractLength.pdf.
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41 CFR Part 61-300

Section 61-300.1 What are the purpose and scope of this part?
    This section outlines the purpose and scope of the regulations. The 
proposed rule would make revisions to paragraph (a) that are 
necessitated by the proposed rescission of the part 61-250 regulations. 
The references to the part 61-250 regulations and the Jobs for Veterans 
Act have been deleted from proposed paragraph (a) because the proposal 
eliminates the need to distinguish the coverage of the part 61-300 
regulations from that of the part 61-250 regulations. In addition, 
proposed paragraph (a) briefly describes the reporting obligations 
under VEVRAA and states that contractors and subcontractors must 
provide the required information on veterans' employment by filing the 
VETS-4212 Report in accordance with the requirements of Sec.  61-
300.11.
    The proposed rule would carry forward paragraph (b) of the existing 
regulation without change. As discussed below in the Section-by-Section 
Analysis of Sec.  61-300.2, the proposed rule would add a definition 
for the term ``protected veteran.'' Accordingly, the term ``protected 
veteran'' has been substituted for ``veteran'' in proposed paragraphs 
(c) and (d).
Section 61-300.2 What definitions apply to this part?
    This section contains the definitions of terms used in the 
regulations. The proposed rule would restructure and renumber the 
definitions so that they are in alphabetical order and easier to find. 
In addition, the proposed rule would eliminate the definitions for 
``covered veteran,'' ``covered incumbent veteran,'' ``other protected 
veteran,'' and ``qualified.'' Further, definitions for ``active duty 
wartime or campaign badge veteran,'' ``protected veteran,'' and 
``electronic filing'' would be added under the proposed rule.
    The Veterans Employment Opportunity Act of 1998 (VEOA) amended 
VEVRAA by extending protection to the category of veterans ``who served 
on active duty in the U.S. military, ground, naval, or air service 
during a war or in a campaign or expedition for which a campaign badge 
has been authorized under the laws administered by the Department of 
Defense.'' Both the VETS and OFCCP regulations implementing the VEOA 
amendments adopted the term ``other protected veteran'' to refer to the 
veterans belonging to this category. OFCCP's September 24, 2013 final 
rule replaces the term ``other protected veteran'' with ``active duty 
wartime or campaign badge veteran.'' As OFCCP explained in the final 
rule's preamble, the term ``other protected veteran'' has been 
misinterpreted as a ``catch-all'' that includes all veterans rather 
than shorthand for the category of veterans who served on active duty 
during a war or in a campaign for which a campaign badge has been 
authorized. (78 FR 58620) VETS agrees that the ``active duty wartime or 
campaign badge veteran'' is an appropriate classification for the 
category, and therefore the term is set forth in proposed paragraph 
(b)(1) of Sec.  61-300.2.
    Proposed paragraph (b)(4) sets forth a definition for ``electronic 
filing.'' Under the proposed rule, ``electronic filing'' means using 
the VETS web-based filing system to file the VETS-4212 Report. The 
proposed rule would also define ``electronic filing'' to include 
transmitting or delivering the VETS-4212 Report as an electronic data 
file.
    The existing regulations include the term ``covered veteran'' and 
indicate that it means a veteran in any of the four categories defined 
in the section--disabled veteran, other protected veteran, Armed Forces 
service medal veteran, and recently separated veteran. OFCCP's final 
rule adds a definition for the term ``protected veteran'' and define it 
to mean a veteran belonging to any of the four categories specified in 
the statute. To maintain consistency, VETS proposes to replace the term 
``covered veteran'' with ``protected veteran.'' Thus, proposed 
paragraph (b)(10) defines ``protected veteran'' as a veteran who may be 
classified as a disabled veteran, recently separated veteran, active 
duty wartime or campaign badge veteran, or an Armed Forces service 
medal veteran.
Section 61-300.10 What reporting requirements apply to Federal 
contractors and subcontractors and what specific wording must the 
reporting requirements contract clause contain?
    This section contains the reporting requirements clause that is to 
be included in each covered government contract or subcontract (and 
modifications, renewals, or extensions thereof if not included in the 
original contract). In existing Sec.  61-300.10, paragraphs (a)(1) and 
(2) of the reporting requirements clause call for contractors to 
provide, by job category and hiring location, the total number of 
employees and new hires during the reporting period who are ''disabled 
veterans, other protected veterans, Armed Forces service medal 
veterans, and recently separated veterans.'' Proposed paragraphs (a)(1) 
and (2) of the clause require contractors to provide the total number 
of employees and new hires ``who are protected veterans.'' In addition, 
proposed paragraph (a)(4) of the clause sets forth the definition of 
``protected veteran'' found in proposed Sec.  61-300-2.
    The proposed rule would revise paragraphs (b), (c), and (e) of the 
reporting requirements clause to refer to the ``VETS-4212 Report.'' 
Further, proposed paragraph (e) does not include

[[Page 10067]]

the term ``covered incumbent veterans'' because the proposed rule would 
adopt the term ``protected veteran.'' No other changes are being 
proposed to the reporting requirements clause in Sec.  61-300.10.
Section 61-300.11 When and how should Federal contractors and 
subcontractors file VETS-4212 Reports?
    Existing Sec.  61-300.11 addresses the VETS-100A Report and when 
and how contractors should file the reports. The proposed rule would 
substantially revise this section. The title to the section in the 
proposed rule would be revised to refer to filing the VETS-4212 Report. 
References to the report ``form'' have been removed from proposed Sec.  
61-300.11 because the proposed rule, as does the existing regulations, 
would allow the VETS-4212 Report to be filed electronically as well as 
in paper format.
    Proposed paragraph (a) provides that contractors must use the VETS-
4212 Report to provide the information on veterans' employment 
specified in the reporting requirements clause set forth in Sec.  61-
300.10. Under the proposed rule, the VETS-4212 Report would not be 
included in the regulations nor published in an appendix. Thus, 
proposed paragraph (a) of Sec.  61-300.11 provides a description of the 
information requested in the VETS-4212 Report. Removing the VETS-4212 
Report from the regulations would make it easier for the agency to make 
future revisions to the annual report that do not require notice and 
comment rulemaking. The public still would have an opportunity to 
comment on subsequent changes to the annual report under the Paperwork 
Reduction Act clearance procedures. Proposed paragraph (a) of this 
section further states that contractors must complete a VETS-4212 
Report for each hiring location in the manner described in the 
instructions published on the VETS Web site and included in paper 
versions of the VETS-4212 Report.
    The proposed rule would revise paragraph (b) of this section to 
refer to the VETS-4212 Report. Proposed paragraph (b) continues to 
provide that VETS-4212 Reports must be filed by September 30.
    Proposed paragraph (c) of this section sets forth the methods for 
filing the VETS-4212 Report. Proposed paragraph (c)(1) states that 
electronic filing via the VETS web-based filing system is the preferred 
method for filing VETS-4212 Reports. Proposed paragraph (c)(1)(i) 
addresses electronic filing by contractors with one hiring location and 
states that such contractors may complete and submit a VETS-4212 Report 
using the web-based filing system. Electronic filing by contractors 
with multiple hiring locations is addressed in proposed paragraph 
(c)(1)(ii). Under existing Sec.  61-300.11(b) contractors with 10 or 
more hiring locations that submit computer-generated reports to comply 
with the reporting obligation are required to submit the reports in an 
electronic data file. Similarly, proposed paragraph (c)(1)(ii) requires 
contractors with 10 or more hiring locations to submit their VETS-4212 
Reports in the form of an electronic data file and provides that the 
electronic data files may be submitted through the web-based filing 
system, transmitted electronically as an email attachment (if they do 
not exceed the size stated in the Department of Labor specifications), 
or submitted on a compact disc or other electronic storage media. The 
proposed rule also would encourage contractors with fewer than 10 
hiring locations to submit VETS-4212 Reports in the form of an 
electronic data file. Proposed paragraph (c)(2) addresses ``alternative 
filing methods'' and provides that the VETS-4212 Report may also be 
filed in paper format. Proposed paragraph (c)(2) explains that paper 
versions of the VETS-4212 Report may be downloaded from the VETS Web 
site or requested by writing to VETS at the address stated in the 
proposed regulation.
Section 61-300.20 How will DOL determine whether a contractor or 
subcontractor is complying with the requirements of this part?
    This section states that OFCCP may determine whether a contractor 
has submitted a VETS-4212 Report required by the regulations. The 
proposed rule would carry forward this section without change, except 
that the word ``filed'' has been substituted for ``submitted'' and 
proposed Sec.  61-300.20 refers to the VETS-4212 Report.
Section 61-300.99 What is the OMB control number for this part?
    The proposed rule would make no changes to this section.

Regulatory Procedures

Executive Order 12866 (Regulatory Planning and Review) and Executive 
Order 13563 (Improving Regulation and Regulatory Review)

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' which requires review by the Office 
of Management and Budget (OMB), as ``any regulatory action that is 
likely to result in a rule that may: (1) Have an annual effect on the 
economy of $100 million or more or adversely affect in a material way 
the economy, a sector of the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this regulatory action have been examined. The proposed 
rule will not have an annual effect on the economy of $100 million or 
more, and it does not raise novel legal or policy issues. Accordingly, 
it has been determined that the proposed rule is not a significant 
regulatory action under Executive Order 12866.

Regulatory Flexibility Act and Executive Order 13272 (Consideration of 
Small Entities)

    The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601 et seq., 
requires agencies issuing rulemaking proposals to consider the impact 
they are likely to have on small entities. More specifically, the RFA 
requires agencies to ``review rules to assess and take appropriate 
account of the potential impact on small businesses, small governmental 
jurisdictions, and small organizations.'' If a proposed rule is 
expected to have a ``significant economic impact on a substantial 
number of small entities,'' the agency must prepare an initial 
regulatory flexibility analysis (IRFA). If, however, a proposed rule is 
not expected to have a significant economic impact on a substantial 
number of small entities, the agency may so certify, and need not 
perform an IRFA.

[[Page 10068]]

    Based on the analysis below, in which VETS estimates the impact of 
complying with the requirements contained in this proposed rule on 
small entities that are Federal contractors, VETS certifies that this 
proposed rule will not have a significant economic impact on a 
substantial number of small entities.
    In making this certification, VETS determined the approximate 
number of regulated small entities that will be impacted by the 
proposed rule. Based on information in the VETS-100 Reporting System 
regarding reports on veterans' employment filed in 2012, VETS estimates 
that approximately 15,000 Federal contractors will be subject to the 
reporting requirements under the proposed rule. The size standard used 
by the Small Business Administration (SBA) to define small businesses 
varies by industry, but the SBA uses the ``fewer than 500 employees'' 
limit when making an across-the-board classification.\3\ Using this 
size standard, VETS assumes that 8,000 of the Federal contractors and 
subcontractors that will be subject to the proposed rule are small 
entities.\4\ VETS seeks comment on this assumption. While the RFA does 
not specifically define ``substantial number,'' VETS concludes that the 
proposed rule may impact a substantial number of small entities.
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    \3\ SBA Office of Advocacy Frequently Asked Questions about 
Small Business, September 2012, available at http://www.sba.gov/advocacy/7495/29581.
    \4\ The dollar amount of the government contract triggers the 
reporting requirement under VEVRAA. VETS does not maintain data on 
the size of Federal contractor workforces. However, VETS believes 
that a large number of Federal contractors and subcontractors employ 
more than 500 employees.
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    However, VETS has determined that the impact on small entities 
affected by the proposed rule will not be significant. The objective of 
the proposal is to implement the reporting obligations under VEVRAA in 
a manner that provides meaningful data on Federal contractors' 
employment and hiring of protected veterans. As discussed below in the 
Paperwork Reduction Action section, the proposal will result in a 
significant reduction in paperwork burden for Federal contractors and 
subcontractors subject to the VETS-4212 reporting requirement over a 
ten-year period. VETS believes that Federal contractors and 
subcontractors may need to adjust their human resources (HR) 
information systems to provide the information requested in the 
proposed VETS-4212 Report and therefore estimates one-time 
implementation costs would total $5.1 million. VETS estimates that 
Federal contractors and subcontractors subject to the VETS-4212 
reporting requirement would have recurring annual costs of about $2.7 
million. Thus, VETS estimates that the first-year compliance costs for 
the proposed rule are approximately $7.8 million. Assuming that each 
contractor subject to the reporting requirement has a contract valued 
at the $100,000 minimum for coverage under VEVRAA, VETS estimates that 
each contractor's share of first-year compliance costs is about $520 
($7.8 million/15,000 contractors) or about 0.52% of the $100,000 
minimum contract. After the first year, each contractor's share of the 
recurring annual costs would be approximately $180 ($2.7 million/
15,000) or about 0.18% of the $100,000 minimum contract. Accordingly, 
VETS considers it appropriate to conclude that the proposed rule will 
not have a significant economic impact on a substantial number of small 
entities. VETS invites comment from members of the public who believe 
there will be a significant economic impact on small entities that are 
Federal contractors.

Paperwork Reduction Act

    The collections of information contained in the existing part 61-
250 and part 61-300 regulations implementing the reporting requirements 
under VEVRAA are subject to review and approval by the Office and 
Management and Budget (OMB) under the Paperwork Reduction Act of 1995 
(PRA), 44 U.S.C. 3501 et seq. The existing information collection 
instruments--the VETS-100 Report that contractors subject to the part 
61-250 regulations are required to use, and the VETS-100A Report that 
contractors covered under the part 61-300 must use to annually report 
on their veterans' employment--are currently approved under OMB Control 
No. 1293-0005.
    The proposed rule contains information collections that are subject 
to review and approval by OMB under the PRA. Proposed Sec.  61-300.11 
requires contractors to use a simplified collection instrument that 
would be renamed the VETS-4212 Report to provide the total number of 
employees in their workforces; the total number of such employees, by 
job category and hiring location, who are protected veterans; the total 
number of new hires during the reporting period covered by the report; 
the total number of new hires who are protected veterans; and the 
maximum and minimum number of employees of such contractor during the 
period covered by the report.
    Under the existing part 61-300 regulations, the collection 
instrument--the VETS-100A Report--is published as an appendix to the 
regulations. The NPRM does not include the collection instrument in the 
regulations so that any future changes could be made without notice and 
comment rulemaking under the Administrative Procedure Act. However, the 
public would still be able to comment on any proposed changes to the 
collection instrument under the PRA clearance procedures.
    The recordkeeping and reporting burden for the collection of 
information in proposed Sec.  61-300.11 is imposed through the 
preparation and submission of the proposed VETS-4212 Report, which is 
discussed in the paperwork burden analysis of the report below. A copy 
of the information collection request with applicable supporting 
documentation, including the proposed VETS-4212 Report and 
instructions, a description of the likely respondents, proposed 
frequency of response, and estimated total burden may be obtained from 
the RegInfo.gov Web site, http://www.reginfo.gov/public/do/PRAMain, on 
the day following publication of this NPRM, or by contacting William 
Torrans, at the addresses or telephone number provided at the beginning 
of the preamble.
    VETS encourages comments from the public on the continued 
collections of information for the VETS-100A Report as well as those in 
the proposed rule, including comments about the specific format and 
content of the VETS-4212 Report that VETS is proposing that contractors 
use to annually report information on their employment of protected 
veterans. Written comments and suggestions from the public concerning 
the proposed information collection instrument, the VETS-4212 Report, 
may also be submitted to OMB at: Office of Information and Regulatory 
Affairs, Attn: OMB Desk Officer for the Department of Labor, Veterans' 
Training and Employment Service, Office of Management and Budget, Room 
10235, Washington, DC 20503, Telephone: 202-395-6929/Fax: 202-395-6881 
(these are not toll-free numbers), email: [email protected]. 
OMB requests that comments be received within 30 days of the 
publication of the proposed rule to ensure their consideration. Please 
note that comments submitted to OMB are a matter of public record. To 
help ensure proper consideration, comments to the OMB should mention 
OMB Control Number 1293-0005. Comments may also be sent directly to 
VETS in the same way as all other comments (i.e., using any of the 
methods identified shown in the ADDRESSES section in the beginning of 
the preamble).

[[Page 10069]]

    The Department and OMB are particularly interested in comments 
that:
    (1) Evaluate whether the proposed information collection is 
necessary to the proper performance of the agency, including whether 
the information will have practical utility;
    (2) Evaluate the accuracy of the agency's estimate of the projected 
burden of the proposed collection of information, including the 
methodology and assumptions used;
    (3) Enhance the quality, utility and clarity of the information to 
be collected; and
    (4) Minimize the burden of the collection of information on those 
required to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology (e.g., permitting 
electronic submission of responses).
    Contractors and other members of the public are encouraged to 
provide data where estimates are provided or assumptions are described. 
This data could help VETS refine estimates of the amount of time needed 
to fulfill the reporting requirements. The Department notes that a 
Federal agency cannot conduct or sponsor a collection of information 
unless OMB approves it under the PRA, and it displays a currently valid 
OMB control number. The public is not required to respond to a 
collection of information unless it displays a currently valid OMB 
control number. In addition, notwithstanding any other provisions of 
law, no person shall be subject to penalty for failing to comply with a 
collection of information if the collection of information does not 
display a currently valid OMB control number. The information 
collection in the proposed rule is not effective until the final 
regulations become effective and VETS publishes a Federal Register 
Notice announcing OMB's approval of the proposed new information 
collection instrument.

Paperwork Burden and Compliance Costs

 Estimate of the Burden for the Collection of Information
    The paperwork burden that would result from the proposed rule is 
made up of two components. The first component is the one-time burden 
of the hours and their equivalent salary cost associated with 
contractors adjusting their recordkeeping systems to generate the 
information on veterans' employment required by the proposed revisions 
to Sec.  61-300.11 and the proposed VETS-4212 Report. The second 
component is the ongoing annual burden (number of burden hours and 
their equivalent salary cost and the mailing cost) required for 
contractors to annually file the proposed VETS-4212 Report.
    The currently approved Information Collection Request for the VETS-
100 and VETS-100A Report contains paperwork burden hours and costs that 
are based on the total number of respondents and VETS-100 and VETS-100A 
Reports filed in 2010. The paperwork burden and costs associated with 
the proposed VETS-4212 Report are based on data showing the actual 
number of respondents and VETS-100 and VETS-100A Reports filed in 2012.
One-Time Implementation Burden and Costs
    In 2012, approximately 14,700 contractors filed the VETS-100A 
Report, while nearly 6,000 filed the VETS-100 Report.\5\ Accordingly, 
based on the number of contractors that filed annual reports in 2012, 
VETS estimates that 15,000 contractors would file the proposed VETS-
4212 Report.
---------------------------------------------------------------------------

    \5\ The VETS-100 Reporting System shows 5,960 contractors filed 
VETS-100 Reports, and 14,714 contractors filed VETS-100A Reports in 
2012. These numbers have been rounded for purposes of this analysis.
---------------------------------------------------------------------------

    VETS assumes that contractors subject to the VETS-4212 reporting 
requirement would make adjustments to their human resources (HR) 
information systems to provide the data requested in the proposed VETS-
4212 Report. VETS expects the burden hours and costs for making such 
adjustments will be greater for contractors that electronically file 
annual reports on veterans' employment than they will be for 
contractors that file paper versions of the annual report. In 2012, 
approximately 98% of contractors filed their annual reports 
electronically, and therefore VETS estimates that 98% or 14,700 
contractors would electronically file the proposed VETS-4212 Report. 
VETS believes it will take a Software Developer about eight hours to 
make the one-time modification to the HR information system of a 
contractor that electronically files annual reports. Accordingly, the 
estimated burden for electronic filers to make the one-time change to 
their HR information systems is 117,600 hours (14,700 x 8). The 
estimated cost for the system modifications for electronic filers is 
based on data from the Occupational Outlook Handbook (OOH), which lists 
the 2010 median compensation of $43.52 per hour for a Software 
Developer. VETS estimates the one-time implementation salary costs for 
electronic filers would total $5,117,952.
    With respect to contractors that file paper versions of the annual 
report on veterans' employment, VETS believes that it will take a Human 
Resources Specialist about two hours to make the one-time adjustment to 
the HR information system. The OOH lists $25.33 per hour as the 2010 
median compensation for a Human Resources Specialist. The estimated 
burden for the 300 contractors that file paper versions of the annual 
report to make one-time adjustments to their HR information systems is 
600 hours, and the estimated cost is $15,198. Thus, VETS estimates that 
the one-time implementation salary costs for all contractors that are 
required to file the proposed VETS-4212 Report would total $5,133,150.

 Contractors: 15,000 Federal Contractors
 Electronic Filing (98%): 14,700 contractors
 Paper filing (2%): 300 contractors
 Hours for software design: 8 Hrs. x 14,700 contractors = 
117,600 implementation work hours
 Hours for HR specialist: 2 Hrs. x 300 contractors = 600 
implementation work hours
 Salary for Software Designer: $43.52 per hour
 Salary for HR Specialist: $25.33 per hour
 Estimated One-time Salary Costs: $5,117,952 (electronic) + 
$15,198 (paper) = $5,133,150
Recurring Burden Hours and Other Cost Calculation
    The proposed rule would require contractors with a contract of 
$100,000 or more to file the proposed VETS-4212 Report for each of 
their hiring locations. Table 1 shows 14,700 contractors submitted 
approximately 315,000 VETS-100A Reports in 2012.\6\ Based on the number 
of VETS-100A Reports filed in 2012, VETS estimates contractors filing 
the proposed VETS-4212 Report on average will have 21 hiring locations. 
Consequently, VETS estimates that contractors subject to the VETS-4212 
reporting requirement would file approximately 315,000 reports.
---------------------------------------------------------------------------

    \6\ The VETS-100 Reporting system shows contractors submitted 
75,123 VETS-100 Reports and 314,825 VETS-100A Reports in 2012. For 
purposes of this analysis the numbers have been rounded.

[[Page 10070]]



                              Table 1--VETS-100 and VETS-100A Reports Filed in 2012
----------------------------------------------------------------------------------------------------------------
               Submission from Federal contractors                   VETS-100        VETS-100A        Totals
----------------------------------------------------------------------------------------------------------------
Total Respondents...............................................           6,000          14,700  ..............
Total Annual Responses..........................................          75,000         315,000         390,000
     Electronic Response................................          73,500         308,700         382,200
     Paper Response.....................................           1,500           6,300           7,800
----------------------------------------------------------------------------------------------------------------

    The proposed VETS-4212 Report requires fewer reportable items. The 
currently approved VETS-100A Report required under the existing part 
61-300 regulations has 82 unique reportable items. The proposed VETS-
4212 Report that would replace the currently approved VETS-100A Report 
has just 42 unique items--a reduction of nearly 50 percent. The 
reduction in the number of reportable items is expected to reduce the 
time it takes to complete and file the annual report on veterans' 
employment. VETS estimates that it would take contractors 20 minutes (a 
reduction of 10 minutes per report) to complete and electronically file 
the proposed VETS-4212 Report and 40 minutes (a reduction of 20 minutes 
per report) to complete a paper version of the proposed VETS-4212 
Report.
    As shown in Table 2, VETS estimates that it would take 107,100 
burden hours annually to file electronic and paper versions of the 
VETS-4212 Report. VETS assumes Human Resources Specialists would 
prepare and file the reports, and based on their 2010 median 
compensation of $25.33 per hour, VETS estimates that the annual salary 
cost for filing the proposed VETS-4212 Report would total $2,712,843.
    In addition, VETS recognizes that the 300 contractors that file 
paper versions of the proposed VETS-4212 Report will have operations 
and maintenance costs. VETS estimates that contractors on average will 
submit 21 VETS-4212 Reports and that it will cost approximately $.08 to 
print and/or copy each report. The estimated paper cost would be $504 
(300 x 21 x $.08). In addition, VETS estimates an average mailing cost 
of $1.92 for each submission. The estimated cost for mailing would be 
$576 (300 x $1.92). Accordingly, Table 2 shows the total estimated 
annual operations and maintenance costs would be $1,080.

 Table 2-- Estimated Paperwork Burden and Costs for Filing the Proposed
                            VETS-4212 Report
------------------------------------------------------------------------
    Submission from Federal contractors       Total VETS-4212 reporting
------------------------------------------------------------------------
Total Respondents.........................                        15,000
Total Annual Responses (Avg. 21 Reports          (15,000 x 21) = 315,000
 per Contractor)..........................
     Electronic Responses (98% of                        308,700
     total responses).....................
     Paper Responses (2% of total                          6,300
     responses)...........................
Burden Hours:
     Electronic 20 min............                       102,900
     Paper 40 min.................                         4,200
Recurring Total Filing Burden Hours.......                       107,100
     Filing Salary Equivalent                         $2,712,843
     Burden Cost ($25.33).................
     Annual Operations and                                $1,080
     Maintenance Cost.....................
Recurring Total Annual Costs..............                    $2,713,923
Total One Time Implementation Burden Hours                       118,200
Total One Time Implementation Salary                          $5,133,150
 Equivalent Burden Cost...................
------------------------------------------------------------------------

    As Table 3 shows, the NPRM is expected to reduce burden hours from 
the currently approved 199,350 to 107,100 total burden hours (a 
decrease of 46 per cent). The reduction in burden hours comes from two 
sources: the proposed rescission of the part 61-250 regulations and 
elimination of the VETS-100 reporting requirement, and the reduction in 
the number of unique items the contractor would be required to complete 
on the proposed VETS-4212 Report. Over a ten-year period, the proposed 
regulation is expected to save Federal contractors about 804,300 burden 
hours and approximately $18,233,780 in salary equivalent burden costs.

                                     Table 3--Estimated Burden Hours Savings
----------------------------------------------------------------------------------------------------------------
                                                                Currently
                                                              approved ICR        VETS-4212         Estimated
            Submission from Federal contractors             for OMB No. 1293-     estimate        burden hours
                                                                  0005                          and cost savings
----------------------------------------------------------------------------------------------------------------
Burden Hours:
     Annual Burden Calculation....................           199,350         (107,100)            92,250
     One-Time Implementation Burden Hours.........                 0         (118,200)         (118,200)
First-Year Burden.........................................           199,350         (225,300)          (25,950)
Burden Savings After Year One.............................           199,350         (107,100)            92,250
Ten-Year Burden Savings...................................  ................  ................           804,300
Burden Costs:
     Annual Salary Equivalent Burden Cost ($25.33)        $5,049,536      ($2,712,843)        $2,336,693
     \7\..................................................
     One Time Implementation Salary Equivalent                     0      ($5,133,150)      ($5,133,150)
     Burden Cost..........................................
First-year Salary Equivalent Burden Cost..................        $5,049,536      ($7,845,993)      ($2,796,457)
Salary Equivalent Costs Savings After Year One............        $5,049,535        $2,712,843        $2,336,692

[[Page 10071]]

 
Ten-Year Salary Equivalent Cost Savings...................  ................  ................       $18,233,780
----------------------------------------------------------------------------------------------------------------

    Ongoing information collections must be reauthorized by OMB at 
least every three years. The annualized burden over the three-year 
life-span of this collection is summarized as follows:
---------------------------------------------------------------------------

    \7\ The Supporting Statement for currently approved VETS-100/
100A Reports (OMB No. 1293-0005) contains estimated salary 
equivalent burden costs that are based on the $16.00 hourly 
compensation of an unspecified contractor employee. The $25.33 per 
hour median compensation for a Human Resources Specialist is used to 
calculate the salary equivalent burden costs in this analysis. In 
order to calculate the change in salary equivalent costs resulting 
from the proposed rule, VETS has used the $25.33 hourly compensation 
of the HR Specialist to calculate the salary equivalent burden cost 
for the currently approved burden hours.
---------------------------------------------------------------------------

    Agency: DOL-VETS.
    Title of Collection: Federal Contractor Veterans' Employment Report 
VETS-4212.
    OMB Control Number: 1290-0005.
    Affected Public: Private Sector--businesses or other for-profit and 
not-for-profit institutions; state, local, and tribal governments.
    Total Estimated Number of Respondents: 15,000.
    Total Estimated Number of Responses: 315,000.
    Total Estimated Annual Burden Hours: 107,100.
    Total Estimated Annualized Salary Equivalency: $4,423,893.
    Total Estimated Other Cost Burden: $1,080.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by Section 804 of the 
Small Business Regulatory Enforcement Fairness Act of 1996. This rule 
will not result in an annual effect on the economy of $100 million or 
more; a major increase in costs or prices; or significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or on the ability of the United States-based companies to 
compete with foreign-based companies in domestic and export markets.

Unfunded Mandates Reform Act of 1995

    For purposes of the Unfunded Mandates Reform Act of 1995, 2 U.S.C. 
1532, this proposed rule does not include any Federal mandate that may 
result in excess of $100 million in expenditures by state, local, and 
tribal governments in the aggregate or by the private sector.

Executive Order 13132 (Federalism)

    VETS has reviewed this proposed rule in accordance with Executive 
Order 13132 regarding federalism, and has determined that it does not 
have ``federalism implications.'' This rule will not ``have substantial 
direct effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.''

Executive Order 13175 (Consultation and Coordination With Indian Tribal 
Governments)

    This proposed rule does not have tribal implications under 
Executive Order 13175 that requires a tribal summary impact statement. 
The proposed rule does not have substantial direct effects on one or 
more Indian tribes, on the relationship between the Federal government 
and Indian tribes or on the distribution of power and responsibilities 
between the Federal government and Indian tribes.

Effects on Families

    The undersigned hereby certifies that the proposed rule would not 
adversely affect the well-being of families, as discussed under section 
654 of the Treasury and General Government Appropriations Act, 1999.

Executive Order 13045 (Protection of Children)

    This proposed rule would have no environmental health risk or 
safety risk that may disproportionately affect children.

Environmental Impact Assessment

    A review of this proposed rule in accordance with the requirements 
of the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 
et seq.; the regulations of the Council on Environmental Quality, 40 
CFR 1500 et seq.; and DOL NEPA procedures, 29 CFR part 11, indicates 
the proposed rule would not have a significant impact on the quality of 
the human environment. Thus, there is no corresponding environmental 
assessment or an environmental impact statement.

Executive Order 13211 (Energy Supply)

    This proposed rule is not subject to Executive Order 13211. It will 
not have a significant adverse effect on the supply, distribution, or 
use of energy.

Executive Order 12630 (Constitutionally Protected Property Rights)

    This proposed rule is not subject to Executive Order 12630 because 
it does not involve implementation of a policy that has takings 
implications or that could impose limitations on private property use.

Executive Order 12988 (Civil Justice Reform Analysis)

    This proposed rule was drafted and reviewed in accordance with 
Executive Order 12988 and will not unduly burden the Federal court 
system. The proposed rule was: (1) Reviewed to eliminate drafting 
errors and ambiguities; (2) written to minimize litigation; and (3) 
written to provide a clear legal standard for affected conduct and to 
promote burden reduction.

List of Subjects in 41 CFR Parts 61-250 and 61-300

    Government contracts, reporting and recordkeeping requirements, 
Veterans.

    Signed at Washington, DC, this 11th day of February 2014.
Keith Kelly,
Assistant Secretary of Labor for Veterans' Employment and Training 
Service.

    Accordingly, for the reasons stated in the preamble, under the 
authority of 38 U.S.C. 4212, VETS proposes to amend Title 41 of the 
Code of Federal Regulations, Chapter 61 as follows:

PART 61-250 [REMOVED]

0
1. Remove part 61-250.
0
2. Revise part 61-300 to read as follows:

PART 61-300--ANNUAL REPORT FROM FEDERAL CONTRACTORS

Sec.
61-300.1 What are the purpose and scope of this part?
61-300.2 What definitions apply to this part?

[[Page 10072]]

61-300.10 What reporting requirements apply to Federal contractors 
and subcontractors, and what specific wording must the reporting 
requirements contract clause contain?
61-300.11 When and how should Federal contractors and subcontractors 
file VETS-4212 Reports?
61-300.20 How will DOL determine whether a contractor or 
subcontractor is complying with the requirements of this part?
61-300.99 What is the OMB control number for this part?

    Authority: 38 U.S.C. 4211 and 4212.


Sec.  61-300.1  What are the purpose and scope of this part?

    (a) This part 61-300 implements 38 U.S.C. 4212(d). Each contractor 
or subcontractor who enters into a contract or subcontract in the 
amount of $100,000 or more with any department or agency of the United 
States for the procurement of personal property and non-personal 
services (including construction), and who is subject to 38 U.S.C. 
4212(a), must annually report to the Secretary of Labor information on 
the number of employees in its workforce who belong to the categories 
of veterans protected under the Act, and the number of those employees 
who were hired during the period covered by the report. Each contractor 
or subcontractor must provide the required information on veterans' 
employment by filing the Federal Contractor Veterans' Employment Report 
VETS-4212 (``VETS-4212 Report''), in accordance with the requirements 
of Sec.  61-300.11.
    (b) Notwithstanding the regulations in this part, the regulations 
at 41 CFR part 60-300, administered by OFCCP continue to apply to 
contractors' and subcontractors' affirmative action obligations 
regarding protected veterans.
    (c) Reporting requirements of this part regarding protected 
veterans will be deemed waived in those instances in which the Director 
of OFCCP has granted a waiver under 41 CFR 60-300.4(b)(1), or has 
concurred in the granting of a waiver under 41 CFR 60-300.4(b)(3), from 
compliance with all the terms of the equal opportunity clause for those 
establishments not involved in Government contract work. Where OFCCP 
grants only a partial waiver, compliance with these reporting 
requirements regarding protected veterans will be required.
    (d) 41 CFR 60-300.42 and Appendix B to part 60-300 provide guidance 
concerning the affirmative action obligations of Federal contractors 
toward applicants for employment who are protected veterans.


Sec.  61-300.2  What definitions apply to this part?

    (a) For the purposes of this part, the definitions for the terms 
``contract,'' ``contractor'', Government contract,'' ``subcontract'' 
and ``subcontractor'' are the same as those set forth in 41 CFR part 
60-300.
    (b) For purposes of this part:
    (1) Active duty wartime or campaign badge veteran means a veteran 
who served on active duty in the U.S. military, ground, naval, or air 
service during a war or in a campaign or expedition for which a 
campaign badge has been authorized under the laws administered by the 
Department of Defense.
    (2) Armed Forces service medal veteran means a veteran who, while 
serving on active duty in the U.S. military, ground, naval or air 
service, participated in a United States military operation for which 
an Armed Forces service medal was awarded pursuant to Executive Order 
12985 (61 FR 1209, 3 CFR, 1996 Comp., p. 159).
    (3) Disabled veteran means:
    (i) A veteran of the U.S. military, ground, naval or air service 
who is entitled to compensation (or who but for the receipt of military 
retired pay would be entitled to compensation) under laws administered 
by the Secretary of Veterans Affairs, or
    (ii) A person who was discharged or released from active duty 
because of a service-connected disability.
    (4) Electronic filing or ``e-filing'' means filing the VETS-4212 
Report via the VETS web-based filing system. E-filing also includes 
transmitting or delivering the VETS-4212 Report as an electronic data 
file. Instructions for electronically filing the VETS-4212 Report are 
found on VETS' Web site at: http://www.dol.gov/vets/vets100filing.htm.
    (5) Employee means any individual on the payroll of an employer who 
is an employee for purposes of the employer's withholding of Social 
Security taxes except insurance sales agents who are considered to be 
employees for such purposes solely because of the provisions of 26 
U.S.C. 3121(d)(3)(B) (the Internal Revenue Code). Leased employees are 
included in this definition. Leased employee means a permanent employee 
provided by an employment agency for a fee to an outside company for 
which the employment agency handles all personnel tasks including 
payroll, staffing, benefit payments and compliance reporting. The 
employment agency shall, therefore, include leased employees in its 
VETS-4212 Report. The term employee SHALL NOT include persons who are 
hired on a casual basis for a specified time, or for the duration of a 
specified job (for example, persons at a construction site whose 
employment relationship is expected to terminate with the end of the 
employee's work at the site); persons temporarily employed in any 
industry other than construction, such as temporary office workers, 
mariners, stevedores, lumber yard workers, etc., who are hired through 
a hiring hall or other referral arrangement, through an employee 
contractor or agent, or by some individual hiring arrangement, or 
persons (except leased employees) on the payroll of an employment 
agency who are referred by such agency for work to be performed on the 
premises of another employer under that employer's direction and 
control.
    (6) Hiring location (this definition is identical to establishment 
as defined by the instructions for completing Employer Information 
Report EEO-1, Standard Form 100 (EEO-1 Report)) means an economic unit 
which produces goods or services, such as a factory, office, store, or 
mine. In most instances the establishment is at a single physical 
location and is engaged in one, or predominantly one, type of economic 
activity. Units at different locations, even though engaged in the same 
kind of business operation, should be reported as separate 
establishments. For locations involving construction, transportation, 
communications, electric, gas, and sanitary services, oil and gas 
fields, and similar types of physically dispersed industrial 
activities, however, it is not necessary to list separately each 
individual site, project, field, line, etc., unless it is treated by 
the contractor as a separate legal entity. For these physically 
dispersed activities, list as establishments only those relatively 
permanent main or branch offices, terminals, stations, etc., which are 
either:
    (i) Directly responsible for supervising such dispersed activities; 
or
    (ii) The base from which personnel and equipment operate to carry 
out these activities. (Where these dispersed activities cross State 
lines, at least one such establishment should be listed for each State 
involved).
    (7) Job category means any of the following: Officials and managers 
(Executive/Senior Level Officials and Managers and First/Mid-Level 
Officials and Managers), professionals, technicians, sales workers, 
administrative support workers, craft workers, operatives, laborers and 
helpers, and service workers, as required by the Employer Information

[[Page 10073]]

Report EEO-1, Standard Form 100 (EEO-1 Report), as follows:
    (i) Officials and managers as a whole is to be divided into the 
following two subcategories: Executive/Senior Level Officials and 
Managers and First/Mid-Level Officials and Managers.
    (A) Executive/Senior Level Officials and Managers means 
individuals, who plan, direct and formulate policies, set strategy and 
provide the overall direction of enterprises/organizations for the 
development and delivery of products and services, within the 
parameters approved by boards of directors of other governing bodies. 
Residing in the highest levels of organizations, these executives plan, 
direct, or coordinate activities with the support of subordinate 
executives and staff managers. They include, in larger organizations, 
those individuals within two reporting levels of the CEO, whose 
responsibilities require frequent interaction with the CEO. Examples of 
these kinds of managers are: Chief executive officers, chief operating 
officers, chief financial officers, line of business heads, presidents 
or executive vice presidents of functional areas or operating groups, 
chief information officers, chief human resources officers, chief 
marketing officers, chief legal officers, management directors and 
managing partners.
    (B) First/Mid Level Officials and Managers means individuals who 
serve as managers, other than those who serve as Executive/Senior Level 
Officials and Managers, including those who oversee and direct the 
delivery of products, services or functions at group, regional or 
divisional levels of organizations. These managers receive directions 
from Executive/Senior Level management and typically lead major 
business units. They implement policies, programs and directives of 
Executive/Senior Level management through subordinate managers and 
within the parameters set by Executives/Senior Level management. 
Examples of these kinds of managers are: Vice presidents and directors; 
group, regional or divisional controllers; treasurers; and human 
resources, information systems, marketing, and operations managers. The 
First/Mid Level Officials and Managers subcategory also includes those 
who report directly to middle managers. These individuals serve at 
functional, line of business segment or branch levels and are 
responsible for directing and executing the day-to-day operational 
objectives of enterprises/organizations, conveying the directions of 
higher level officials and managers to subordinate personnel and, in 
some instances, directly supervising the activities of exempt and non-
exempt personnel. Examples of these kinds of managers are: First-line 
managers; team managers; unit managers; operations and production 
managers; branch managers; administrative services managers; purchasing 
and transportation managers; storage and distribution managers; call 
center or customer service managers; technical support managers; and 
brand or product managers.
    (ii) Professionals means individuals in positions that require 
bachelor and graduate degrees, and/or professional certification. In 
some instances, comparable experience may establish a person's 
qualifications. Examples of these kinds of positions include: 
accountants and auditors; airplane pilots and flight engineers; 
architects; artists; chemists; computer programmers; designers; 
dieticians; editors; engineers; lawyers; librarians; mathematical 
scientists; natural scientists; registered nurses; physical scientists; 
physicians and surgeons; social scientists; teachers; and surveyors.
    (iii) Technicians means individuals in positions that include 
activities requiring applied scientific skills, usually obtained by 
post-secondary education of varying lengths, depending on the 
particular occupation, recognizing that in some instances additional 
training, certification, or comparable experience is required. Examples 
of these types of positions include: drafters; emergency medical 
technicians; chemical technicians; and broadcast and sound engineering 
technicians.
    (iv) Sales workers means individuals in positions including non-
managerial activities that wholly and primarily involve direct sales. 
Examples of these types of positions include: advertising sales agents; 
insurance sales agents; real estate brokers and sales agents; wholesale 
sales representatives; securities, commodities, and financial services 
sales agents; telemarketers; demonstrators; retail salespersons; 
counter and rental clerks; and cashiers.
    (v) Administrative support workers means individuals in positions 
involving non-managerial tasks providing administrative and support 
assistance, primarily in office settings. Examples of these types of 
positions include: office and administrative support workers; 
bookkeeping; accounting and auditing clerks; cargo and freight agents; 
dispatchers; couriers; data entry keyers; computer operators; shipping, 
receiving and traffic clerks; word processors and typists; 
proofreaders; desktop publishers; and general office clerks.
    (vi) Craft workers means individuals in positions that include 
higher skilled occupations in construction (building trades craft 
workers and their formal apprentices) and natural resource extraction 
workers. Examples of these types of positions include: boilermakers; 
brick and stone masons; carpenters; electricians; painters (both 
construction and maintenance); glaziers; pipelayers, plumbers, 
pipefitters and steamfitters; plasterers; roofers; elevator installers; 
earth drillers; derrick operators; oil and gas rotary drill operators; 
and blasters and explosive workers. This category also includes 
occupations related to the installation, maintenance and part 
replacement of equipment, machines and tools, such as: automotive 
mechanics; aircraft mechanics; and electric and electronic equipment 
repairers. This category also includes some production occupations that 
are distinguished by the high degree of skill and precision required to 
perform them, based on clearly defined task specifications, such as: 
millwrights; etchers and engravers; tool and die makers; and pattern 
makers.
    (vii) Operatives means individuals in intermediate skilled 
occupations and includes workers who operate machines or factory-
related processing equipment. Most of these occupations do not usually 
require more than several months of training. Examples include: textile 
machine workers; laundry and dry cleaning workers; photographic process 
workers; weaving machine operators; electrical and electronic equipment 
assemblers; semiconductor processors; testers, graders and sorters; 
bakers; and butchers and other meat, poultry and fish processing 
workers. This category also includes occupations of generally 
intermediate skill levels that are concerned with operating and 
controlling equipment to facilitate the movement of people or 
materials, such as: bridge and lock tenders; truck, bus or taxi 
drivers; industrial truck and tractor (forklift) operators; parking lot 
attendants; sailors; conveyor operators; and hand packers and 
packagers.
    (viii) Laborers and helpers means individuals with more limited 
skills who require only brief training to perform tasks that require 
little or no independent judgment. Examples include: production and 
construction worker helpers; vehicle and equipment cleaners; laborers; 
freight, stock and material movers; service station attendants; 
construction laborers; refuse and recyclable materials collectors; 
septic tank servicers; and sewer pipe cleaners.

[[Page 10074]]

    (ix) Service workers means individuals in positions that include 
food service, cleaning service, personal service, and protective 
service activities. Skill may be acquired through formal training, job-
related training or direct experience. Examples of food service 
positions include: cooks; bartenders; and other food service workers. 
Examples of personal service positions include: medical assistants and 
other healthcare support positions; hairdressers; ushers; and 
transportation attendants. Examples of cleaning service positions 
include: cleaners; janitors; and porters. Examples of protective 
service positions include: transit and railroad police and fire 
fighters; guards; private detectives and investigators.
    (8) NAICS means the North American Industrial Classification 
System.
    (9) OFCCP means the Office of Federal Contract Compliance Programs, 
U.S. Department of Labor.
    (10) Protected veteran means a veteran who is protected under the 
non-discrimination and affirmative action provisions of the Act; 
specifically, a veteran who may be classified as a ``disabled 
veteran,'' ``recently separated veteran,'' ``active duty wartime or 
campaign badge veteran,'' or an ``Armed Forces service medal veteran,'' 
as defined in this section.
    (11) Recently separated veteran means a veteran during the three-
year period beginning on the date of such veteran's discharge or 
release from active duty in the U.S. military, ground, naval or air 
service.
    (12) States means each of the several States of the United States, 
the District of Columbia, the Virgin Islands, the Commonwealth of 
Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern 
Mariana Islands, Wake Island, and the Trust Territories of the Pacific 
Islands.
    (13) VETS means the Office of the Assistant Secretary for Veterans' 
Employment and Training Service, U.S. Department of Labor.


Sec.  61-300.10  What reporting requirements apply to Federal 
contractors and subcontractors, and what specific wording must the 
reporting requirements contract clause contain?

    Each contractor or subcontractor described in Sec.  61-300.1 must 
submit reports in accordance with the following reporting clause, which 
must be included in each of its covered government contracts or 
subcontracts (and modifications, renewals, or extensions thereof if not 
included in the original contract). Such clause is considered as an 
addition to the equal opportunity clause required by 41 CFR 60-300.5. 
The reporting requirements clause is as follows:

Employer Reports on Employment of Protected Veterans

    (a) The contractor agrees to report at least annually, as 
required by the Secretary of Labor, on:
    (1) The total number of employees in the workforce of such 
contractor, by job category and hiring location, and the total 
number of such employees, by job category and hiring location, who 
are protected veterans;
    (2) The total number of new employees hired by the contractor 
during the period covered by the report, and of such employees, the 
number who are protected veterans; and
    (3) The maximum number and minimum number of employees of such 
contractor at each hiring location during the period covered by the 
report.
    (4) The term ``protected veteran'' refers to a veteran who may 
be classified as a ``disabled veteran,'' recently separated veteran, 
``active duty wartime or campaign badge veteran,'' or an ``Armed 
Forces service medal veteran,'' as defined in 41 CFR 61-300.2.
    (b) The above items must be reported by completing the report 
entitled ``Federal Contractor Veterans' Employment Report VETS-
4212.''
    (c) VETS-4212 Reports must be filed no later than September 30 
of each year following a calendar year in which a contractor or 
subcontractor held a covered contract or subcontract.
    (d) The employment activity report required by paragraphs (a)(2) 
and (a)(3) of this clause must reflect total new hires and maximum 
and minimum number of employees during the 12-month period preceding 
the ending date that the contractor selects for the current 
employment report required by paragraph (a)(1) of this clause. 
Contractors may select an ending date:
    (1) As of the end of any pay period during the period July 1 
through August 31 of the year the report is due; or
    (2) As of December 31, if the contractor has previous written 
approval from the Equal Employment Opportunity Commission to do so 
for purposes of submitting the Employer Information Report EEO-1, 
Standard Form 100 (EEO-1 Report).
    (e) The number of veterans reported according to paragraph (a) 
above must be based on data known to contractors and subcontractors 
when completing their VETS-4212 Reports. Contractors' and 
subcontractors' knowledge of veterans status may be obtained in a 
variety of ways, including, in response to an invitation to 
applicants to self-identify in accordance with 41 CFR 60-300.42, 
voluntary self-disclosures by employees who are protected veterans, 
or actual knowledge of an employee's veteran status by a contractor 
or subcontractor. Nothing in this paragraph (e) relieves a 
contractor from liability for discrimination under 38 U.S.C. 4212.


[End of Clause]


Sec.  61-300.11  When and how should Federal contractors and 
subcontractors file VETS-4212 Reports?

    (a) The VETS-4212 Report must be used to report the information on 
veterans' employment required in paragraph (a) of the contract clause 
set forth in Sec.  61-300.10. The VETS-4212 Report requires contractors 
and subcontractors to provide the total number of employees in their 
workforces by job category and hiring location; the total number of 
such employees, by job category and hiring location, who are protected 
veterans; the total number of new hires during the period covered by 
the report; the total number of new hires during the period covered by 
the report who are protected veterans; and the maximum and minimum 
number of employees of such contractor or subcontractor during the 
period covered by the report. Contractors and subcontractors must 
complete a VETS-4212 Report for each hiring location in the manner 
described in the instructions published on the VETS Web site and 
included in the paper version of the VETS-4212 Report.
    (b) VETS-4212 Reports must be filed no later than September 30 of 
each year following a calendar year in which a contractor or 
subcontractor held a contract or subcontract.
    (c)(1) Electronic filing. The preferred method for filing VETS-4212 
Reports is electronically through the VETS web-based filing system. 
Instructions for e-filing the VETS-4212 Report are found on the VETS 
Web site at: http://www.dol.gov/vets/vets100filing.htm.
    (i) Single hiring location. Contractors and subcontractors doing 
business at one hiring location may complete and submit a single VETS-
4212 Report using the web-based filing system.
    (ii) Multiple hiring locations. Contractors and subcontractors 
doing business at more than 10 locations must submit their VETS-4212 
Reports in the form of an electronic data file that complies with 
current Department of Labor specifications for the format of these 
records, and any other specifications established by the Department for 
the applicable reporting year. Contractors and subcontractors with 
fewer than 10 hiring locations are strongly encouraged to submit their 
VETS-4212 Reports in the form of an electronic data file, but are not 
required to do so. In these cases, state consolidated reports count as 
one location each. Contractors and subcontractors may submit VETS-4212 
Reports in the form of electronic data files through the web-based 
filing system. Electronic data files also may be transmitted 
electronically as an email

[[Page 10075]]

attachment (if they do not exceed the size stated in the 
specifications), or submitted on compact discs or other electronic 
storage media.
    (2) Alternative filing methods. (i) The VETS-4212 Report may also 
be filed in paper format. Contractors and subcontractors may download a 
paper version of the VETS-4212 Report from the VETS Web site or send a 
written request for the paper version of the VETS-4212 Report to: 
Office of the Assistant Secretary for Veterans' Employment and 
Training, U.S. Department of Labor, 200 Constitution Avenue NW., Room 
S-1325, Washington, DC 20210, Attn: VETS-4212 Report Form Request.
    (ii) VETS-4212 Reports in paper format or electronic data files on 
compact discs or other electronic storage media may be delivered by 
U.S. mail or courier delivery service to the addresses set forth in the 
instructions for completing the report. Paper copies of the VETS-4212 
Reports and electronic data files (if they do not exceed the size 
stated in the specifications) also may be sent as email attachments to 
the address indicated in the instructions.


Sec.  61-300.20  How will DOL determine whether a contractor or 
subcontractor is complying with the requirements of this part?

    During the course of a compliance evaluation, OFCCP may determine 
whether a contractor or subcontractor has submitted its VETS-4212 
Report(s) as required by this part.


Sec.  61-300.99  What is the OMB control number for this part?

    Pursuant to the Paperwork Reduction Act, 44 U.S.C. 3501 et seq., 
and its implementing regulations at 5 CFR part 1320, the Office of 
Management and Budget has assigned Control No. 1293-0005 to the 
information collection requirements of this part.

[FR Doc. 2014-03503 Filed 2-21-14; 8:45 am]
BILLING CODE 4510-79-P