Most federally-insured banks with more than fifty employees are considered federal contractors subject to the affirmative action program (AAP) requirements (1) because they contract with the federal government to provide their insurance and (2) because they either have deposits of federal funds or act as agents for federal bonds. See Office of Federal Contract Compliance Programs (OFCCP) Jurisdiction FAQ # 4. The AAP requirements apply to “[e]ach nonconstruction contractor . . . if it has 50 or more employees and: . . . (iii) Serves as a depository of Government funds in any amount; or (iv) Is a financial institution which is an issuing and paying agent for U.S. savings bonds and savings notes in any amount.” 41 CFR 60-2.1(b). In other words, there are three tests to apply to determine whether a bank is subject to the AAP requirements: (1) whether the bank has more than 50 employees; (2) whether the bank is a nonconstruction contractor; and (3) whether the bank serves as a government funds depository or is an agent for U.S. savings bonds.

 As to the first test, the regulations do not define “50 or more employees”; to be safe, we recommend counting all employees, whether full-time or part-time. As to the second test, all federally-insured banks are considered government contractors; the definition of “government contract” includes “any agreement . . . for the purchase, sale or use of . . . nonpersonal services . . . [which] includes . . . : insurance, and fund depository.” 41 CFR 60-1.3. Because all banks contract with the federal government for their deposit insurance, all banks are federal contractors. Office of Federal Contract Compliance Programs (OFCCP) Jurisdiction FAQ # 4. Finally, if your bank has any federal funds on deposit or acts as an agent on any U.S. bonds, and it fulfills the other two tests, it is required to comply with the various affirmative action program requirements. See 41 CFR 60-2.1 et seq. The laws, regulations, and Department of Labor guidance documents that apply to AAPs can be found here.