Credit Union Regulatory Alert  

Published by Howard & Howard Attorneys PLLC

Are Credit Unions Federal Contractors?


According to the Department of Labor (DOL), yes, all federally-insured credit unions are considered federal contractors. In a formal FAQ, the Office of Federal Contract Compliance Programs at the DOL concluded "financial institutions with federal share or deposit insurance are considered government contractors within the meaning of the regulations implementing Executive Order 11246." 

 

Background

Historically, credit unions were considered federal contractors because they acted as issuing and paying agents for U.S. savings bonds. In 2012, the United States Department of the Treasury began issuing savings bonds directly. Despite this change, federally-insured credit unions are still considered federal contractors due to their federal share insurance and must ensure they comply with the applicable regulations. 

 

Affirmative Action Plans

As federal contractors, credit unions with more than 50 employees must develop an Affirmative Action Plan. At least annually, the Affirmative Action Plan must be reviewed and updated, as necessary. Credit unions can find the specific requirements in 41 CFR 60-2. 
 
The development of an Affirmative Action Plan is more complex than adopting an Equal Employment Opportunity policy. Specifically, affirmative action programs contain a diagnostic component which includes a number of quantitative analyses designed to evaluate the composition of the workforce of the credit union and compare it to the composition of the relevant labor pools. 
 

Additional Information

Howard & Howard Attorneys has a team of Labor and Employment attorneys that are able to help credit unions develop, review and update their Affirmative Action Plans to stay compliant.

 

If you have any questions on your requirements or would like additional information, please contact Steve Van Beek or Michael Bell. 

About Howard & Howard 
Howard & Howard is a full-service law firm with a national and international practice that provides specialized legal services to businesses and business owners. Our focused expertise provides us with a solid understanding of the industries we serve, and our results-oriented approach to practicing law is a beacon for business owners in search of intelligent counsel that aligns with their business goals. Howard & Howard has assembled experts from all legal disciplines who have the sound judgment, creativity and vision to assist businesses with their projects from conception to completion.  We work as a team -- and win for you.  Learn more about Howard & Howard here.
 

Detroit, Ann Arbor, Chicago, Las Vegas, Peoria
In This Issue
Are Credit Unions Federal Contractors?
About Howard & Howard



    


Attorney Spotlight
  

 concentrates his practice in the area of financial regulations. His intimate knowledge of the operational issues facing credit unions provides the perfect platform to recommend best practices to reduce compliance, strategic and reputation risks.
  
Attorney Spotlight
  

  is a Member of Howard & Howard Attorneys PLLC and concentrates his practice in credit union mergers and acquisitions, loan documentation review and strategic planning.
  
This Advisory is intended for informational purposes only, and is not offered as legal advice.  Please call a qualified attorney for counsel related to your particular situation.