FCC Continues EEO Audits, This Time Just For Cable Systems - A Reminder for All to Keep Up EEO Compliance and Paperwork

The FCC has just announced another of its regular EEO audits, though this time its just for cable systems (see the FCC Public Notice and list of affected systems here).  The FCC will audit 5% of all broadcasters and cable companies each year to assess their EEO compliance, so be prepared in case you are next.  Broadcasters were last audited in August (radio stations only), so expect another group to be required to submit their information for scrutiny in the not too distant future.  Our Advisory on complying with the EEO obligations of broadcasters is available here.

This audit also serves to remind broadcasters of their obligation to annually prepare and file an EEO Public File Report, detailing information about hires made and employment recruiting sources used in the prior year, as well as on the "supplemental efforts" that they have engaged in to educate their communities about opportunities in broadcast employment.  Station employment units in Alabama, Colorado, Connecticut, Georgia, Massachusetts, Maine, Minnesota, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota and Vermont need to have their reports in their public file, and on their website, by December 1. For more information about that requirement, see our Advisory on the EEO Public File Report here.

Another EEO Audit Announced By the FCC - Radio Stations Only

Another EEO audit was announced by the FCC today - hitting about 100 radio stations this time around. The Commission has pledged to audit 5% of all broadcast stations and cable systems each year to assure their compliance with the Commission's EEO rules - requiring wide dissemination of information about job openings and supplemental efforts to educate their communities about job opportunities in the media industry.  Today's Public Notice announcing the audit is here.  The list of stations subject to the audit is here.  The form of the audit letter is available here.  Responses from the audited stations are due by September 12.

All stations should review the audit letter as it provides a good outline of the documents that stations should be retaining to demonstrate their compliance with the FCC's EEO rules.  For more information about compliance with the EEO rules, see our advisory on the basics of the EEO rules, here, and our most recent advisory on the requirements for the annual EEO public inspection file report, here.

Another Round of Radio and TV EEO Audits Announced - Emphasis on Annual Public File Being on Your Website

The FCC has announced another round of EEO audits - looking at the compliance with the FCC's EEO rules and policies of several hundred radio and TV stations across the country.  Those stations selected for the audit (see the list here) must provide the FCC with the last two year's public inspection file reports, plus all records maintained by the selected stations that back up the data reported in the annual reports.  The full list of the documents that must be produced is contained in the FCC's letter that went out to stations who were selected (a copy of that letter is available here).  In the FCC's Public Notice  announcing the audit, the FCC emphasized that stations need to post the most recent EEO public file report on their websites, and this requirement was also included in the audit letter.  The FCC emphasized that station's who do not meet this obligation (which the FCC can check from their desks in Washington) are subject to fines.  Responses to the audits are due by May 9, 2011.

EEO is again important to the FCC.  We wrote about the recent reminders about the advertising nondiscrimination clauses that broadcasters must include in their advertising contracts.  Broadcasters will also need to report on their EEO compliance at license renewal time - and license renewals are coming up for all stations across the country in the next 4 years - beginning with radio stations in Maryland, DC, Virginia and West Virginia in June (see our advisory on Preparing for the License Renewal, here).  And, as we reported in December, the FCC has been fining stations for less than complete EEO efforts.  So be prepared.  For further information about a licensee's EEO obligations, see our advisory setting out the basics of the FCC's EEO rules and our most recent advisory on the requirements for the annual EEO public inspection file report

David Oxenford Reviews EEO Rules with the Iowa Broadcasters, While MMTC Asks the FCC to Suspend EEO Enforcement

As I was preparing for a session updating and refreshing broadcasters about their obligations under the FCC’s EEO rules at the Iowa Broadcasters Association annual convention in Des Moines on June 30, I learned of what seemed to be a startling development – the Minority Media and Telecommunications Council, one of the most effective advocates in Washington for minority hiring and ownership, had urged the FCC to suspend its enforcement of the EEO rules. What was this all about? I went on with my presentation (the PowerPoint slides for which are available here, and the slides for the presentation that I did at another session providing an update on Washington issues for radio broadcasters are available here), quickly adding a summary of the MMTC request. While some broadcasters might have hoped that the request recognized that the EEO rules were no longer necessary as broadcasters were, on their own, making great strides in diversifying their workforce, in fact what the MMTC was seeking was tighter EEO enforcement, contending that the current rules are so ineffective as to not be worth the time spent on their implementation and enforcement.

While MMTC acknowledged that there have been a number of recent cases fining stations for noncompliance with the EEO rules, it contends that often the stations that are hit by such fines have very diverse workforces, and thus should not have to worry about EEO outreach. We have written about some of these fines.  These cases demonstrate that the current rules are not targeted at minority and gender-based affirmative action, as FCC rules requiring any evaluation of minority and gender-based hiring were twice declared by the US Court of Appeals to be instances of unconstitutional reverse discrimination. Instead, the current rules are focused instead on bringing new people into the broadcast employment workforce – people recruited from a wide variety of community groups, and not exclusively by word of mouth or through other hiring avenues that simply take people from traditional broadcast hiring sources. But, as MMTC points out, these rules are not based on necessarily seeking to include members of minority groups or women in station workforces.  Thus, as their focus is simply on wide dissemination of information about job openings, even stations that have high percentages of minorities and women on their staffs can still run afoul of the rules by not publicizing job openings.

So what does MMTC want? Seemingly, in some ways, they are seeing a return to an earlier scheme of EEO enforcement. They ask for modifications of the FCC’s EEO rules to include the following:

  • The return of FCC Form 395, which requires each station annually provide to the FCC a profile of its workforce based on its racial and gender composition. The flings of Form 395 has been suspended for over 7 years, as a reaction to the court cases declaring the use of racial and gender profiling of broadcast workforces as part of the FCC’s EEO enforcement regime to be unconstitutional. Since then, the FCC has been seeking a way to bring back the form for statistical profiling of the industry without risking having the information used for enforcement purposes, but has not, as yet, adopted procedures to do so.
  • More EEO audits. The FCC currently audits 5% of all stations annually for EEO compliance. MMTC suggests that 20% of all stations be audited annually, with some audits being done on site at the stations, rather than simply being a paperwork exercise filed at the FCC.
  • An increase in the size of the FCC’s EEO staff so that audits will be more thorough, and completed more quickly. MMTC pointed out that, in several cases, no fines were issued to companies with insufficient EEO efforts as, by the time their EEO efforts were reviewed, a renewal application had been granted, cutting off the FCC’s ability to fine the station for actions taken in a prior renewal period.
  • Moving EEO from the Media Bureau to the Enforcement Bureau. The Enforcement Bureau seemingly has been more ready to take aggressive action against stations for FCC rule violations generally than the Media Bureau.
  • Exempt stations with diverse workforces from EEO penalties
  • Work with the EEOC to investigate more instances where discrimination complaints are filed and take such complaints into account in an FCC review.
  • An investigation into whether word-of-mouth hiring remains too common in the broadcast industry
  • Start an FCC investigatory hearing into why minority representation in broadcast journalism is decreasing

Whether any or all of these steps is taken remains to be seen. But what we are looking at in MMTC’s request is a return to an emphasis on minority and female hiring, not on simply hiring from all groups within the community, not exclusively from the “old boys” network as currently required by the rules. Watch this space for more developments on the MMTC petition. And, for more information on the FCC’s current EEO requirements, see our advisory on the EEO rules here, and our regular reminders on the FCC’s mandatory public inspection file report, the most recent of which is available here

FCC Announces Next Round of EEO Audits to Review Broadcast Station Compliance with EEO Rules

The FCC today released a Public Notice announcing the next group of broadcast stations subject to a random audit of their compliance with the FCC’s EEO rules. The Notice lists radio and television stations across the country that nust respond to a Commission inquiry and provide information and documentation about their EEO efforts. Annually, the FCC audits approximately 5% of all broadcast licensees to assess their compliance with the FCC's EEO rules.  As hopefully all broadcasters know, these rules require the wide dissemination of information about job openings at the broadcast stations and "supplemental efforts" to educate communities about employment opportunities at broadcast stations, even in the absence of employment openings.  The FCC's audit letter requires the submission of two years worth of the Annual Public File reports that stations prepare each year on the anniversary date of the filing of their license renewal applications.  These reports are placed in the station's public file and posted on their websites (if they have websites). 

Stations subject to this round of audits have until June 1st to respond and submit the necessary materials to the Commission. Note that information needs to be supplied not just for the station named on the list, but also for all other stations in the same "station employment unit," i.e. a group of stations under common control, that serve the same general geographic area, and which have at least one common employee. Previous audits have led to significant FCC fines, and broadcasters who are included on today’s list should take care in preparing their responses. The audit notice should also remind other licensees who were lucky enough to have avoided this round of audits to review their EEO programs for FCC compliance purposes, as they could very well find themselves less fortunate when the next FCC audit is announced.

For more information about the FCC's EEO requirements, see our comprehensive memo on the EEO requirements, available here.  In addition, today’s Public Notice is available here, with the sample Audit letter available here. The list of radio stations selected is here, and the television station list is here.

FCC Announces New Round of EEO Audits for Radio Stations; Reminds Broadcsters of Requirement to Post Annual EEO Public File Report on Station Website, and Cable Companies of Obligation to File EEO Program Annual Report

The FCC yesterday issued another in its series of EEO random audit notices, asking that approximately 170 radio stations nationwide provide information about their hiring practices.  Information requested includes the last two years worth of broadcast EEO Public File reports, plus more complete documentation of the efforts outlined in the Public File reports and demonstrating that the information provided in the annual report was really conducted and accurately reported.  In addition, the FCC asks that a station provide an explanation if their most recent EEO public fie report cannot be found on the Station's website.  The FCC's Public Notice about this audit, which lists the stations that must respond, can be found here.  That Public Notice also reminds broadcasters of the obligation to post the EEO public file report on the station's website, perhaps indicating that the FCC has been investigating and has found instances where this is not being done.  Responses to the audit must be filed by September 21.  A form of the EEO audit letter is available here

On the same day as the FCC issued this audit for radio stations, it issued a Public Notice to remind Multi-Channel Video Programming Distributors (MVPDs) with six or more full-time employees, including cable systems, of their obligation to file by September 30 their Annual EEO Program Reports on FCC Form 396-C .  This form is to be filed through the FCC's electronic filing system.  This notice also reminds certain cable systems of the need to submit supplemental information about their hiring efforts to the FCC. 

Even though only 170 radio stations were hit by this audit notice, the audit reaches much further, as the reports must be prepared on the basis of station employment units - all the stations serving a common area with at least one common employee.  For every station hit, there may be many other stations in the same cluster that will also need to provide information.  These audits are continuing - the last being issued only a few months ago.  So be prepared.  Even if your station was not on this audit list, it might be on the next one.

The two reminders issued by the FCC yesterday may highlight a renewed emphasis on EEO by the new administration - so make sure that your hiring practices meet FCC requirements.  Our memo setting out the basics of the FCC's EEO obligations for broadcasters can be found here.  Our most recent reminder about the EEO Annual Public file report, due to be in the public file and on the website of stations on the anniversary of the filing of the license renewal in the state in which the station is licensed, can be found here

FCC Continues EEO Audits - This Time Targets Cable Companies, Not Broadcasters

The FCC has released another Public Notice that it is auditing the EEO performance of a number of the entities that it regulates.  However, this time, the audits are not of broadcasters, but instead of cable companies and other multichannel video programming distributors who are subject to essentially the same EEO rules as broadcasters.  The list of MVPDs that have been hit by the audit can be found appended to the Notice.  Each company that was audited has 30 days to respond to the FCC with details of its compliance with the EEO rules, including information about the wide dissemination of information about each of its job openings and other EEO outreach efforts that it has made.  The FCC's policy is that it will audit the EEO performance of 5% of all of its broadcasters and MVPDs each year - so use this audit notice as a reminder to review your EEO program.  Details of the FCC's requirements for a broadcaster's EEO obligations can be found in Davis Wright Tremaine's advisory, here.