More EEO Fines on Their Way - And Helpful Hints on EEO Compliance From the FCC's EEO Webinar

Last week, I participated in an FCC-sponsored webinar to discuss its EEO rules.  Along with two other private firm lawyers, the chief of the FCC's Office that administers its EEO rules and one of his senior staff members participated on a panel to discuss the legal obligations of broadcasters and MVPDs in meeting the EEO rules.  The panel, which lasted almost two hours, was a very thorough discussion of the requirements of the FCC rules.  It provided insight into how the FCC identifies problems, and even suggested some ideas as to how broadcasters can assure compliance with the requirements in the easiest way possible.  While lengthy, the webinar, which is archived on the FCC's website, is worth viewing to get a very good summary of the FCC rules.  If a station or MVPD has its management employees and others with hiring responsibility sit down and watch the video, and use it as part of a training program for management employees on EEO matters, it may even count as one of the non-job specific supplemental outreach initiatives that the FCC requires each entity subject to the EEO rules to conduct.

We wrote last week about a recent set of FCC fines to two broadcasters that had not widely disseminated information about all of their job openings - relying instead on only a combination of internal sources (word-of-mouth, station websites, intra-company referrals) and Internet websites for their outreach efforts for a substantial number of job openings.  At the webinar, the FCC officials said that there were a number of other enforcement actions in the pipeline that should be public soon.  The FCC is reviewing every license renewal application that is filed with the FCC to determine if its accompanying Form 396 provides information necessary to demonstrate compliance with the three prongs of the FCC's EEO program - wide dissemination for all job openings, notice of job openings to community groups that request such notice, and non-vacancy specific initiatives that are designed to educate a community about the nature and requirements of broadcast jobs.  Stations are also reviewed when the FCC conducts random audits (5% of all stations and MVPDs are supposed to be audited annually) and when complaints or other information comes to the attention of the FCC staff.  Staff members remarked that they have even called stations to discuss issues when visiting a station website for personal reasons and noting the absence of the most recent Annual EEO Public File Report that needs to be posted on a station website on the anniversary date of the filing of the license renewal applications for stations in the state of the station's city of license. 

While there was discussion about the Internet issue, and whether, in today's world, the Internet had become the one easy way to reach all groups within a community (replacing the large daily newspaper whose classified ads the FCC used to look at as the safe harbor for broadcasters to use for their wide dissemination of information about job openings), the FCC staff indicated that there was no movement within the Commission currently on the horizon to change their current position.  However, the FCC staff members offered a willingness to reevaluate the issue if they were presented with information about the pervasiveness of online job searching.  In the interim, broadcasters need to reach out to all the significant community groups in their area with information about job openings using these more traditional sources, like the local newspaper and direct outreach to community groups through direct emails or letters.  All the panelists agreed that making at least some personal contact with outreach groups - including local colleges and trade schools, minority and community organizations, employment agencies and others - helps to make the outreach effort more effective.

We also discussed the "internal promotion" exception to the wide dissemination requirement.  If a station wants to promote a current full-time employee, no recruitment is necessary (the assumption being that if, for instance, a sales person is promoted to sales manager, there would be an opening for a new sales person, and recruiting for that open position would take place).  Promoting a part-time or temporary employee to a full-time position can take advantage of this internal promotions exception, if the part-timer or temp was hired using wide-dissemination.  While there is an old proceeding outstanding about whether or not to extend the wide-dissemination requirements to part-time hiring, at this point the FCC staffers indicated that no decision was imminent.  But, obviously, using outreach efforts to fill part-time positions is advantageous so a part-timer can be promoted to full-time without the outreach efforts if they prove to be a valuable employee.

There was also much discussion about the non-vacancy specific employment initiatives, or supplemental efforts, that stations need to conduct to comply with the FCC rules.  These supplemental efforts are conducted by all broadcast employment units with five or more full-time employees, whether or not the station has any job openings.  The idea is that stations help to educate the public about the types of jobs available at a station, the qualifications for those jobs, how to find out about those jobs.  Also counted are programs to train existing employees to acquire new job skills.  The FCC staffers on the panel seem to take an expansive view of these efforts - evidencing a willingness to count any meaningful activity where station employees take on this educational role.  Credits or partial credits can be obtained for employees speaking at schools, for station visits by boy scout troops, for station promotional efforts in the community where some information is provided to attendees at the event about broadcast employment issues, and (in some instances) for training of existing station employees.  Internships have always been a staple of meeting these supplemental efforts requirement and, as the efforts are judged on a two year period, the FCC staff saw nothing wrong for claiming credit for two separate internship programs where there was recruitment at different times.  In other words, if you have an intern in the fall semester, and then recruit at a school for an intern who you host in the spring semester, the FCC staff seemed open to counting this for two credits.  But, as I warn broadcasters at all EEO seminars that I do, overachieve on these initiatives, as we have yet to see any cases where the FCC formally interprets what does and does not count in connection with these programs.

Documentation and self-assessment were also discussed.  The FCC, in virtually every case where there has been an EEO fine, has also assessed a fine for failure to self-assess the EEO program.  Self-assessment is written into the rules, so stations should be meaningfully reviewing their programs to make sure that they are being properly conducted, all of the required records are being kept, and that the programs are actually producing interviewees from recruiting sources outside of the traditional, in-house sources which the FCC felt that broadcasters in the past relied on too heavily. 

These are but some of the issues tackled during this program, and just some of the issues to be considered in evaluating your EEO program.  For more information about EEO compliance issues, look at some of past articles on this issue, and check out some of our other advisories on the subject.  Our Guide to the FCC's EEO Rules is available here.  Our most recent advisory about the requirements for the annual public inspection file report is available here.  And slides from a recent presentation that I did about these rules for a state broadcast association are available here

FCC Fines Up to $14,000 Proposed for License Renewal EEO Violations, Commission To Hold Webinar to Explain Its Rules

Fines of $14,000 and $8,000 were proposed by the FCC for violations of its EEO rules in two cases (here and here) released on the FCC's last business day of the year.  In both cases, the fines were issued as these clusters of stations, on the FCC Form 396 EEO Reports filed with their license renewal applications, publicized a number of job openings without adequate recruitment.  In the cases faulted by the FCC, the stations' recruitment relied solely on either internal station sources (e.g. word of mouth, referrals from existing employees, ads on the stations or on their own websites) or on on-line resources.  The Commission concluded that this was inadequate dissemination of the information about these openings.  Based on the failure to engage in broad outreach for all of their job openings, these fines were issued by the FCC - perhaps the first of more to come as the FCC reviews license renewal applications during the current license renewal cycle.  Perhaps coincidentally, the FCC will be conducting a webinar on its EEO rules on Wednesday, January 4, which is intended to help explain the obligations of broadcasters and other FCC regulated entities under these rules.

 The January 4 webinar will feature two panels.  The first will be a panel of FCC and private attorneys (I will be one of the participants) who will outline the legal obligations of broadcasters under the FCC's EEO rules and policies and discuss how these rules are applied .  A second panel will feature industry representatives talking about EEO compliance best practices at their stations.  The webinar is free, but requires registration (here).  The FCC public notice of the webinar can be found here, and a further description of the seminar is available on its blog (here).  No doubt, the issues leading to the two fines announced on Friday will be discussed during the legal session.

In both cases, a significant amount of the hiring relied on a limited number of outreach sources. The FCC's rules require broad dissemination of information about all station job openings that do not qualify for some very limited exceptions.  In doing such recruiting, companies must reach beyond their internal sources (what I have characterized in some of the seminars that I've done on this subject as the "old boys network" - see slides from a recent seminar on the EEO rules here), meaning that they can't just rely on word of mouth, referrals from existing employees and the station's own airwaves and websites.  In addition, in prior cases, the FCC has determined that Internet sources cannot be the only sources relied on by a company to supplement these in-house sources, fearing that there are still many potential job-seekers who do not have routine access to the Internet (whether that is still true is open to debate, particularly given the proliferation of job websites that have replaced the traditional newspaper classified ads as the first place that many job-seekers check to look for openings - but it is still the current FCC policy). To comply with FCC rules, broadcasters must reach out to other local groups and organizations with information about their job openings - using other media designed to reach the entire community (e.g. a large daily newspaper), or reaching out to educational institutions and other community groups that represent broad cross-sections of the local community.  As the companies in these cases did not engage in what the Commission considered adequate outreach for all of their job openings (insufficient recruiting was found in 8 of 13 openings in one case, and 5 of 14 in another), the significant fines were proposed. As usually done in these cases, the FCC also faulted the licensees for not doing sufficient self-assessment as they did not catch these problems themselves. 

More information on the Commission's EEO rules is also available from the Davis Wright Tremaine Guide to the EEO Rules, available here.

On-line Recruitment Not Sufficient EEO Outreach for the FCC

In three cases released last week, the FCC made clear that its EEO rules, requiring wide dissemination of information about job opportunities at broadcast stations (and cable systems), are not satisfied by solely posting of information about openings on websites.  Instead, the Commission required that additional outreach efforts be undertaken in order to assure that the notice of the job opening reaches all groups within a  community.  The decisions pointed to the FCC's 2003 Report and Order adopting the current rules which stated that the FCC did not feel that the Internet was sufficiently ubiquitous that they could feel comfortable with on-line postings being sufficient to reach all groups within a community.  In the recent decisions, the FCC staff said that they were not ready to change the determination of the 2003 Commission.

What does this mean on a practical level?  The decisions hold that simply using internal station sources plus on-line postings (in one case website postings plus some combination of walk-ins, industry referrals, and internal postings; in another case  the use of the station's website, plus employee referrals) were insufficient to assure wide dissemination.  To avoid getting caught in this trap, broadcasters must use some other traditional outreach services (e.g. employment agencies, community groups, educational institutions, and the local newspapers) to assure that they meet the Commission's wide dissemination requirements. 

On a more theoretical level, one wonders whether the Commission ought to reexamine this policy.  In the 2003 Order, the FCC assumed that the principal daily newspaper in a community would reach all groups in that community.  Query whether that makes sense 6 years later, especially when some communities (like Detroit) no longer even have a daily paper.  In the 6 years since that decision, the FCC has never addressed the Petitions for Reconsideration that were filed requesting a reexamination of that determination.  In these days where Craigslist and Monster.com have replaced the traditional newspaper classified ads as the place to go for job information in many cities, the FCC should look more closely at its policies.

The decisions also demonstrate that even large broadcasters are not immune from problems in meeting their EEO recruiting obligations.  The fines were all imposed against clusters of local stations owned by large broadcast group owners.  In one of the cases, the local cluster had not put its annual EEO public inspection file report on its website, as required by the rules (a failing which the FCC could, and did, check from its offices in Washington).  In another, the group did not keep adequate records of the wide dissemination that it engaged in, and did not notify community groups that had asked to be notified about station job openings (a notification required by the rules). 

Many of these issues were discovered by EEO audits, which the FCC continues to conduct (the last one occurring just months ago).  Thus, stations need to be alert for these issues, and avoid the potential fines that they can bring - at least until the FCC revisits its policies on these issues.  

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.