EEO Review, Public File Issues, Contest Rules, and License Renewal DIscussed in Seminars at Joint Convention of Oregon and Washington State Broadcast Associations

The nuts and bolts of legal issues for broadcasters were highlighted in two sessions in which I participated at last week's joint convention of the Oregon and Washington State Broadcasters Associations, held in Stephenson, Washington, on the Columbia River that divides the two states.  Initially, I conducted a seminar for broadcasters providing a refresher on their EEO recruiting obligations set out under FCC rules.  With some public interest groups calling for stricter enforcement of a broadcaster's EEO obligations, and with the license renewals for Oregon and Washington State radio broadcasters coming up in 2013 (with TV the next year), broadcasters cannot slack off on these important obligations to widely disseminate information about job openings and to educate their communities about broadcast employment issues as required by the FCC rules.  Slides from my PowerPoint presentation on a broadcaster's EEO obligations are available here.  Broadcasters looking for more information on EEO obligations can review the Davis Wright Tremaine Guide to the EEO rules, here, and our most recent reminder about the obligations for the annual EEO public inspection file report, here.

At a second session, we discussed the variety of legal issues facing broadcasters in the current environment.  Many of the same issues discussed in this session were also discussed in my Top Ten List of Legal Issues to Keep Broadcasters Awake at Night, details of which can be found here.  Some specific questions were raised during the Oregon-Washington session include questions about the FCC rules covering contests that stations conduct, and the rules that apply to such contests.  See our blog post on some of those issues here and here.  The obligations for the public file of broadcasters are also set out in our advisory, here.  Another issue that broadcasters should remember is the new obligation for their advertising contracts to include terms that state that advertising is not sold for any discriminatory purpose, to avoid no-urban, no Spanish dictates (see our post here for details).  As we wrote recently in connection with fines issued to a couple of stations for multiple day-to-day violations of the FCC rules, the attention to these details now will avoid major financial headaches for broadcasters later, and potentially long-term issues at license renewal time as well. 

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

Broadcast Station Reminder: EEO Public File Reports and Form 397 EEO Mid-Term Reports due by June 1st for Stations in Select States

June 1st marks the deadline for two FCC EEO requirements.  First, by June 1st, radio and television stations located in Arizona, the District of Columbia, Idaho, Maryland, Michigan, Nevada, New Mexico, Ohio, Utah, Virginia, West Virginia, and Wyoming, must prepare their Annual EEO Public File Reports.  Specifically, stations or Station Employment Units (SEUs) in those states (and DC) with five or more full time employees (30 hours or more per week) must:  (1) prepare their Annual EEO Public File Report; (2) place it in the public inspection file of each station comprising the SEU; and (3) post the Report on the websites, if any station in the SEU has a website, all by June 1.  The Annual EEO Public File Report summarizes the hiring and EEO activities conducted by the station or SEU during the past 12 months.  The Report provides information about the full time job positions filled in the last year, the recruitment sources used to fill those positions, and the outreach activities that the station or SEU performed during the year.  In preparing their Annual Reports, stations are encouraged to carefully review their EEO activities and take the time to organize their records.  Stations should have appropriate documentation to back up each of the recruitment sources used for each job opening, as well as for each outreach activity.  This annual report is also a good time for the station or employment unit to assess the success of its outreach and the efficacy of its recruitment sources, and to make any adjustments necessary to improve EEO compliance in the coming year.  A copy of our longer EEO advisory can be found here

Second, in addition to preparing the Annual EEO Public File Report by June 1, larger radio stations in Michigan and Ohio (those with eleven or more full-time employees), and television stations in the District of Columbia, Maryland, Virginia, and West Virginia must also prepare and file electronically with the Commission an FCC Form 397 Mid-Term EEO Report.  The Form 397 provides the FCC with copies of the SEU's two most recent Annual EEO Public File Reports, and is an important part of both the station’s compliance with the EEO rules and the Commission’s monitoring procedures.  While normally the Annual Report is simply prepared and placed in the station's public file and on the website, at the mid-point of the license term stations must actually provide the FCC with copies of its two most recent Reports.  Notably, June 1st marks the first time that television stations will have filed the Form 397, as television renewals are staggered from radio renewals.  Following the renewal anniversaries, television stations in other states will follow later this year and next.  And again, only radio stations or SEUs located in Michigan and Ohio that have 11 or more full-time employees, and television stations in DC, Maryland, Virginia, and West Virginia with five or more full-time employees are required to file an FCC Form 397.