EEO Compliance/Diversity

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With the Martin Luther King Day holiday just passed, it seems appropriate to review the FCC’s EEO rules, which look to promote broad access to broadcast employment opportunities.  The FCC’s EEO rules no longer seek exclusively to promote minority employment, but instead seek to have stations reach out to all groups within the area they serve to try to attract people from diverse sources into broadcasting – rather than allowing stations to simply recruit through word-of-mouth and traditional broadcast sources (e.g. referrals from consultants and friends).  We have written about the FCC audit process by which it will review the EEO performance of approximately 5% of all broadcast stations each year (see, e.g. our articles here and here) and also about recent fines for stations that did not comply with the FCC requirements in specific areas.  With EEO review also expanding this year through the filing of FCC Form 397 Mid-Term Reports by radio station clusters with 11 or more full-time employees located in certain states (see the list of states on our Broadcasters’ Regulatory Calendar), it might be good to review the basics of the FCC’s EEO requirements.

The FCC requirements, beyond forbidding any station from engaging in overt discrimination, also requires broad outreach to a station’s community to recruit for open employment positions at any station, as well as efforts to educate the community about the duties of and qualifications for  positions at broadcast stations, whether or not a station has any job openings.  These requirements apply to any station employment unit (a group of commonly-owned stations serving the same general geographic area and having one or more common employees) with 5 or more full-time (30 hours per week or more) employees.  What do the outreach rules require of stations?
Continue Reading Reminder: A Broadcaster’s FCC EEO Obligations

Each year, at about this time, we pull out the crystal ball and make predictions of the issues affecting broadcasters that will likely bubble up to the top of the FCC’s agenda in the coming year.  While we try each year to throw in a mention of the issues that come to our mind, there are always surprises, and new issues that we did not anticipate. Sometimes policy decisions will come from individual cases, and sometimes they will be driven by a particular FCC Commissioner who finds a specific issue that is of specific interest to him or her.  But here is our try at listing at least some of the issues that broadcasters should expect from Washington in the coming year.  With so many issues on the table, we’ll divide the issues into two parts – talking about FCC issues today, and issues from Capitol Hill and elsewhere in the maze of government agencies and courts who deal with broadcast issues.  In addition, watch these pages for our calendar of regulatory deadlines for broadcasters in the next few days.

So here are some issues that are on the table at the FCC – starting first with issues affecting all stations, then on to TV and radio issues in separate sections below. 

General Broadcast Issues

There are numerous issues before the FCC that affect both radio and television broadcasters, some of which have been pending for many years and are ripe for resolution, while others are raised in proceedings that are just beginning. These include:

Multiple Ownership Rules Review: In April, the FCC finally addressed its long outstanding Quadrennial Review of the broadcast multiple ownership rules – essentially by punting most of them into the next Quadrennial Review, which probably won’t be resolved until 2016.  Issues deferred include any revisions to the local ownership limits for radio or TV (such as loosening the ownership caps for TV stations in smaller markets, which the FCC tentatively suggested that they would not do), any revision to the newspaper-broadcast cross-ownership rule (which the FCC tentatively suggested that they would consider – perhaps so that this rule can be changed before the newspaper becomes extinct), and questions about the attribution of TV Shared Services Agreements (which the FCC is already scrutinizing under an Interim Policy adopted by the Media Bureau).
Continue Reading What Washington Has in Store for Broadcasters in 2015 – Part 1, What’s Up at the FCC

A new year, and a new set of regulatory obligations and deadlines for broadcasters and others.  To help track many of the important deadlines for broadcasters in the new year, we have put together a Broadcaster’s Calendar of important regulatory dates for 2015, available here, which highlights many of the dates for the regulatory obligations of broadcasters in 2015.  While not exhaustive, and subject to change, the calendar sets out the regular regulatory dates for broadcasters (e.g. Quarterly Issues Programs lists, Children’s Television Reports, EEO public inspection file reports, reg fee obligations, etc.).  It also highlights dates that don’t necessarily occur every year – like this year’s obligation for commercial broadcasters to file Biennial Ownership Reports.  While the license renewal cycle for TV concludes this year, Mid-Term EEO report obligations (FCC Form 397) for radio stations in the states that were the first to file their renewals in the last radio license renewal cycle (those in the DC area and in the southeast) kick in mid-year for radio employment units with more than 10 full-time employees.  The calendar also lists January dates for webcasters to file various elections (including elections to be treated as a “small broadcaster” which, for broadcasters who stream their stations online but have a very small audience, can lessen payment and reporting obligations).  There are even a few lowest unit rate windows listed for states that have announced state and local elections (and are many other states holding such elections that we were not able to determine dates – so check those locally.

Some of the important January regulatory dates include the obligation of all broadcasters, by the 10th of the month, to have their Quarterly Issues Programs lists in their public file.  TV stations should also place their certifications as to compliance with children’s television commercial limits in their files by that date.  By the 12th (as the 10th is a weekend day), television stations must also submit to the FCC their Form 398 Children’s Television Programming Reports that report on educational and informational programming directed to children. 
Continue Reading A Broadcaster’s Regulatory Calendar for 2015, Plus Important Regulatory Deadlines for January Including Incentive Auction and Captioning Comments

Two fines for EEO violations released Friday were among the rush of actions coming from the FCC last week as it tries to finish its work of 2014.  Incentive auction procedures, MVPD redefinition, online public file issues, approvals of long-pending TV company mergers and so many other actions were taken in the last week that we can’t keep up.  Now, we can add EEO violations to the list of year-end actions, as the FCC’s Media Bureau on Friday released two Notices of Apparent Liability to radio stations operators for violating the EEO rules, proposing fines of $5000 and $9000.  While, in both cases, the stations are principally faulted for their failure to engage in wide dissemination of job openings, one case cites a new issue as the issue partially underlying the EEO fine – the failure to actually provide notice of job openings to all of the recruitment sources that had requested that the station notify them when there are job vacancies. Both cases arose from station license renewal applications filed about more than 3 years ago.

Each EEO employment unit (stations under common control, serving the same geographic area and sharing a common employee) with 5 or more full-time employees must engage in the three prongs of the FCC’s EEO outreach requirements.  First, they must engage in wide dissemination of information about job openings, using a variety of recruitment sources to ensure that information about job openings at a station reach all of the diverse groups of people that may be represented within the station’s recruitment area.  Secondly, they must let groups within the community know that they can ask to be notified of job openings at the station when such openings arise (and in fact provide such notice when the openings do arise).  Finally, they must engage “non-vacancy specific outreach efforts” – activities to educate the community about broadcast employment – what people do in broadcast jobs, how they can find out about the jobs, and what sort of training or experience is necessary for jobs in the industry.  It was violations of these first two prongs of the FCC’s EEO program that got the stations in trouble in these two recent orders.
Continue Reading Fines of $9000 and $5000 Imposed on Radio Stations for Insufficient EEO Outreach Efforts – Reminder to Review Your Program as EEO Mid-Term Report Cycle Begins in 2015

The FCC has just announced another of its regular EEO audits, though this time it’s just for cable and satellite television systems, which also have EEO obligations (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…

With regulatory fees behind us, October brings a number of the routine quarterly regulatory filing dates.  October 10 for all broadcast stations, commercial and noncommercial, is the date by which your Quarterly Issues Programs lists, setting out the most important issues that faced your community in the last quarter and the programs that you broadcast to address those issues, need to be placed in the physical public inspection file of radio stations, and the online public file of TV broadcasters.  As missing and incomplete Quarterly lists have led to more fines in the recent license renewal violation than any other matter, and as the FCC staffers have been reviewing some of the TV station lists that are now posted in the online public inspection files of station, completing these forms on a timely basis remains very important. 

Full power TV and Class A TV stations by October 10 also need to have filed with the FCC their FCC Form 398 Children’s Television Reports, addressing the educational and informational programming directed to children that they broadcast.  Also, by that same date, they need to upload to their online public files records showing compliance with the limits on commercials during programming directed to children.  Children’s television reports have trailed right behind the Quarterly Issues Programs lists as the source of fines at license renewal time – so be sure that these are completed and filed on a timely basis as well. 
Continue Reading October Regulatory Dates for Broadcasters – Quarterly Issues Programs Lists and Children’s Television Reports, New Form for TV CP Applications, Comments on Captioning of Video Clips and Incentive Auction Reimbursement Form and More!

In November, the FCC changed its policy regarding the foreign ownership of broadcast stations.  In its decision, about which we wrote here, it agreed to entertain applications seeking “alien ownership” exceeding the 25% limit for foreign ownership of broadcast stations that had previously been in place.  In the modern communications era, with its diversity of media outlets, the Commission determined that the risk of increased foreign ownership was outweighed by the potential for new entrants into the broadcast industry, backed by new sources of capital from outside of the United States.  The FCC did not adopt any blanket rules for permitting higher levels of alien ownership, but instead agreed to consider specific requests for a declaratory ruling on a case-by-case basis to show that foreign ownership of a broadcast station in excess of 25% was not contrary to the public interest.  Despite the invitation to file such requests, as far as we know, none have been filed – until now, and that comes from what is perhaps an unexpected source – Pandora, which is best known as an Internet radio operator.

As we wrote several months ago, Pandora has sought to acquire an FM radio station that operates in the Rapid City, South Dakota radio market.  Its application to acquire the station was opposed by ASCAP, who feared that Pandora would use its status as a broadcaster to ask for broadcaster rates negotiated by the Radio Music Licensing Committee (RMLC) for the public performance of ASCAP music.  ASCAP based its opposition principally on the contention that Pandora had not proved that less than 25% of its stock was beneficially owned or controlled by foreign entities.  Despite Pandora being a company founded in the US by US citizens, headquartered and operating almost exclusively in the US, and traded on the US stock exchanges, ASCAP contended that Pandora had not established that its ownership of a broadcast station would not violate the alien ownership rules.  How could they make such an argument?
Continue Reading Pandora Files First Petition for Declaratory Ruling Under FCC’s Liberalized Foreign Ownership Rules for Broadcast Stations

The FCC has extended the time for filing comments in its ownership proceeding.  While comments on the new Quadrennial Review of the ownership rules had been set to be filed by July 7 (see our article here), the Commission has now extended the deadline until August 6 at the request of the Coalition…

The FCC yesterday issued a Public Notice announcing a new round of EEO audits.  Letters to about 180 radio stations went out asking for evidence of their compliance with the FCC’s EEO rules.  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 non-vacancy specific supplemental efforts to educate their communities about job opportunities in the media industry. The form audit letter was also released by the FCC and attached to the Public Notice. Responses from the audited stations are due to be filed at the FCC by July 25. Licensees should carefully review the list of affected stations contained in the Public Notice to see if any of their stations are on the list. 

The audit letter requires all stations with 5 or more full-time (30 or more hours per week) employees to provide information about their EEO programs.  Even stations with fewer than 5 full-time employees need to report the names and positions of their employees, and provide any information about law suits, EEOC complaints or similar employment actions brought as a result of  equal employment or discrimination matters.  The requirements for stations with 5 or more employees are more significant.
Continue Reading Another Round of EEO Audits of Radio Stations Announced by the FCC

March is one of those few months on the FCC’s regulatory calendar where there are few routine filing deadlines.  While stations that filed their renewal applications in February need to continue to run their post-filing announcements, and those that are going to file renewals in April (the end of the renewal cycle for radio stations) should be running their pre-filing announcements, the month is otherwise a quiet one.  There are no regularly-scheduled renewal filing deadlines, no deadlines for annual EEO or ownership reports, and no quarterly issues programs lists or children’s television reports.  All of those deadlines return with a vengeance in early April.  To help keep track on those dates applicable to stations in your area, we prepared a Broadcasters Regulatory Calendar, available here, that tracks many routine FCC filing deadlines, as well as other deadlines of importance to broadcasters throughout the remainder of 2014 – including lowest unit rate windows for the political broadcasting season, dates for submission of SoundExchange royalties, and some of the other regularly recurring deadlines for broadcasters .

 There are some comment dates in FCC proceedings of interest to broadcasters that fall later this month.  We recently wrote about the extension of the reply comment deadline for the proceeding to look at Revitalizing the AM Band (see our summary of the issues raised in that proceeding here and here).  Those Reply Comments are due on March 20.  On that same date, Reply Comments are due in an FCC proceeding to Accessibility of User Interfaces and Video Programming Guides.  The next week, on March 25, Reply Comments are due in the proceeding looking to change the FCC’s Sports Blackout Rules.  And for those stations lucky enough to be selected for the FCC’s latest random EEO audit, the responses are due on March 31 (see our article here). 
Continue Reading 2014 Broadcasters’ Legal Calendar – and March FCC Regulatory Dates of Importance