Another FCC EEO Audit - This Time for Cable Systems, Not Broadcasters

As we've written before, the FCC every year aims to randomly audit 5% of all broadcast stations and multichannel video programming distributors (MVPDs) to assure their compliance with the Commission's EEO rules.  Every few months, the FCC releases a list of the lucky regulatees who have to respond to the audit.  Today, the Commission issued another one of these audit lists - this time for MVPDs, principally cable systems.   No broadcasters are on the list - this time.  The cable systems and other MVPDs who are subject to the audit are listed on the attachment to the FCC's Public Notice released today, here.

Broadcasters may not have been subject to this round of audits, but the audits will roll around again, and broadcasters will be subject the audit when the next one is conducted.  Thus, broadcasters should review their practices to ensure that they are in compliance with the requirements of the Commission's rules.  Our Advisory setting out those requirements can be found here.

What a Difference A Renewal Makes - FCC Admonishes Two Broadcasters for EEO Violations, Fines Would Have Followed if Renewals Had Not Recently Been Granted

In two decisions released this week by the FCC, here and here, two large broadcast group owners were admonished for failures to comply with the FCC’s EEO rules. In both cases, failures to widely disseminate information about job openings in one market were discovered by the FCC in the course of random EEO audits that selected these stations for review. In both cases, the Commission determined that the violations were serious, and imposed reporting conditions (essentially subjecting the stations to an FCC audit of their EEO annual public file reports every year for the next 3 years). And in each case, the FCC would have fined the stations for their violations, but the Commission moved too slow, as in both cases, license renewals were granted between the time of the violations and the EEO audit.  Under provisions of the Communications Act, the Commission cannot fine a station for action that occurred during a prior renewal term - so the grant of the renewals cut off the possibility of a fine in these cases.

These actions highlight the importance of complying with the Commission’s EEO rules, which we have summarized in our EEO Guide, here. In particular, in both cases, the station groups had not widely disseminated information about job openings, as required by the rules. Wide dissemination requires the use of recruitment sources designed to reach all groups within a community to allow their members to learn about the job openings at the station. The Commission's aim is to bring into the broadcast workforce employees representing diverse groups within a community rather than hiring all their employees from traditional broadcast sources.  In these cases, the stations had used only corporate websites, on-air announcements, and word of mouth recruiting. No outside sources, or sources reasonably likely to reach the entire community, were used by the broadcasters, hence the admonition and the reporting conditions. 

So, is a broadcaster never justified in relying on its own airwaves as its sole recruitment tool? In most cases, as not everyone in a community is likely to listen to one owner’s broadcast stations, it cannot reasonably be assumed that the use of the airwaves would reach the entire community.  While the FCC, in the Order adopting the EEO rules, did say that the use of a major newspaper read throughout the community might be sufficient as a source to reach all groups within the community, most broadcasters face competition, rarely being in a situation where they have the overall market reach of the monopoly daily newspaper (even though most broadcasters might argue that it is far more likely that ads on their stations will be heard and remembered than it is that a classified ad somewhere in a newspaper will be read by a potential employment candidate – especially one who may not be actively looking for work, but who might be intrigued by the possibility of a broadcast career and consider pursuing an open broadcast position). Nevertheless, under the current EEO regulations, broadcasters must design their EEO programs in such a way so as to be theoretically targeting all groups within a community.

In addition, it is important to note that one of these decisions involved Entravision, a broadcaster specializing in Spanish-language programming. It is probably reasonable to assume that the broadcaster had an ethnically diverse workplace, attracting Hispanic-American employees. However, the new EEO rules are designed not to measure the race or ethnicity of the broadcast station’s workplace, but instead to measure its efforts to reach out to the entire community and all groups within that community (not just racial and ethnic minorities) to bring new people from these diverse groups into the broadcast workforce. Thus, stations that may have racially or ethnically diverse workforces should not consider themselves exempt from the requirements of the rules. 

As the Commission has committed to randomly audit 5% of all broadcast stations annually, and to also audit cable television systems which are subject to similar EEO rules, these cases are significant in demonstrating that the Commission’s EEO rules must be strictly observed, or serious consequences may ensue. So assess your EEO program now to assure that it is in compliance with the Commission’s rules. 

Another Round of FCC EEO Audits

The FCC today announced another round of EEO audits of broadcast stations throughout the country.  The FCC's Public Notice of the audits, and the list of the stations that are affected, can be found here.  Broadcasters should review this list carefully, both by call letter and licensee name, as we have noted situations where the FCC's list of licensee names used in this audit is not accurate, even though the licensee is correct elsewhere in the FCC's databases.  The audit letters were dated June 12, and responses are due in 30 days.  These letters usually require answers to an extensive list of questions, as well as the submission of supporting documentation to show a licensee's compliance with the FCC's EEO rules over the last two years.  We have written a Guide to the FCC's EEO requirements, which can be found here, to help broadcasters assure their compliance with these rules.  Whether or not a broadcaster is on this audit list, this opportunity should be used to review your EEO compliance, as the Commission conducts these audits on a regular basis - so you could be next.