Media Bureau Cracks The EEO Whip

Bureau whacks two licensees for $8K and $20K for inadequate recruitment and record-keeping

The Media Bureau celebrated the end of 2010 (or maybe the arrival of 2011) by serving warning that, for every single full-time job opening – no exceptions – broadcasters must notify multiple recruitment sources that are likely to refer applicants from diverse backgrounds. Exclusive reliance on over-the-air announcements and Internet postings will not do the trick.  Neither will reliance on word-of-mouth or unsolicited walk-ins standing alone.  And, of course, all notification activities (and other recruitment minutiae) must be documented in the annual EEO report that stations place in their public inspection file on the anniversary of their renewal application filing.

Happy New Year!

This celebratory heads-up was delivered in Notices of Apparent Liability (NAL) issued to two separate broadcast groups late on December 29.

In one case involving several stations in small Oregon communities, the licensee apparently failed to include its annual EEO public file reports for 2004 and 2005 with its 2005 renewal application. The Bureau wrote to the licensee, asking for those two reports – and oh, by the way, while you’re at it, please send along reports for 2006, 2007 and 2008, too. (The Bureau didn’t get around to asking for any of these reports until 2009. Time, apparently, was not of the essence when it came to processing the 2005 renewal applications.) And although it didn’t ask for the 2009 report, Bureau staffers checked that report out anyway on the licensee’s website. (You do remember that you have to post your most recent annual report on your website, don’t you?)

The reports showed that there were 29 vacancies during the 2003-2009 period. For six the licensee relied only on “walk-in/mail-in” applicants. For another seven, it relied exclusively on postings on Internet websites. For 15, it relied strictly on over-the-air-announcements.  Conclusion? The licensee violated the EEO rule “because it failed to use recruitment sources sufficient to disseminate information concerning the vacancies as required”.  

The licensee also didn’t have records of (a) the number of people it interviewed for each opening or (b) the recruitment source from which each interviewee learned of the opening. (While not every applicant is willing to disclose where he or she learned of an opening, you must ask. This requirement applies only to applicants you interview, not all applicants.)

Total fine: $20,000 – $16K for failing to recruit properly, $1K for failing to keep required records, $2K for incompleteness of public file reports, and another $1K for failing to adequately analyze the effectiveness of recruitment efforts.

The second NAL involved a group of stations in small communities in Missouri picked in 2008 as part of the Commission’s random audit process. During the reporting periods ending in 2006 and 2007, the licensee had 24 vacancies. For three openings, it relied on walk-in applicants; and for one opening each it relied on, respectively, word-of-mouth, a business referral, and an employee referral. The licensee noted that it broadcast “generic recruitment ads that promote different careers in radio and working at [the licensee]”, even when there were no current openings, and walk-in applicants may apply because of these spots. The public file report in one year failed to list job titles of seven vacancies, classifying them as “other”.

Total fine: $8,000 – $5K for failing to recruit properly, $2K for incomplete public file reports, and $1K for inadequate analysis of its recruitment efforts.

Both licensees used on-air or Internet announcements to get the word out about employment opportunities. These recruitment methods are likely to reach a race- and gender-blind audience, and people who want to work at your station are likely to listen to your station. Indeed, we hear from broadcasters all the time that on-air and Internet announcements are the only methods that produce any results. By contrast, mass mailings to organizations supposedly able to spread the word reportedly do little but use up postage and paper.

But to the FCC, it doesn’t matter. You must publicize every full-time opening to a variety of specific sources. There is no requirement that any of these sources ever refer any job applicants (much less any qualified ones), although consistent non-response is supposed to be a reason to look for new sources. Remember as well that any recruitment source that affirmatively requests to be notified must receive notifications of all openings.

Particularly surprising here is the conclusion of the Media Bureau’s EEO enforcers that “reliance on Internet sources is inadequately broad recruitment”.  In view of the Commission’s rabid promotion of broadband as a panacea for just about every conceivable economic problem, it’s difficult to understand why the Media Bureau is pooh-poohing broadband and insisting instead on Last Century approaches which have historically proven ineffective.

No matter. We are headed into a new cycle of broadcast license renewals, which will require EEO showings from all non-exempt licensees. (See below for exemptions.) After an eight-year respite, some stations may have gotten a tad rusty on the EEO front. It’s important NOT to let that happen. When you file your renewal application, you will have to submit your two most recent EEO public file reports. So even if you work extra hard to make your latest report complete, you could still get caught with your pants down if the report from the year before fell short.

While not mentioned in last week’s cases, all non-exempt licensees must also undertake two or four (depending on staff and market size) EEO “initiatives” every two years, drawn from a list of activities set out in the EEO rule (47 C.F.R. Section 73.2080). If you haven’t read that section lately, it would be a very good idea to read it now.

(A note on exemptions. Employment units with not more than four full-time (i.e., at least 30 hours/week) employees are exempt from the EEO recruiting/reporting rules.  “Full-time” means at least 30 hours per week. Employees with a 20% or greater ownership interest in the licensee are not counted in determining staff size. There are no blanket exemptions for low power TV or noncommercial stations.  Radio stations with at least five but no more than ten full-time employees do not have to file a mid-term EEO report (Form 397) between license renewals, but they are still subject to other EEO recruitment and reporting obligations (including the annual public file report).  Stations with religious programming formats need not go through a full-scale recruitment process where a specific faith is a relevant qualification for a particular job, but they are still expected to reach out widely to reach qualified potential applicants for those jobs and must recruit fully for positions where faith is not a relevant qualification.)

[Blogmeister's Note: We have revised the first and eleventh paragraphs of this post to clarify that, at least for the time being, the notification requirement relates only to FULL-TIME positions.  Under the current rules, part-time openings (less than 30 hours per week) are not subject to the recruitment requirement.  However, the FCC at one time proposed to extend the requirement to part-time jobs and may do so in the future.]

Parsing Form 397

Which TV licensees have to file?

Recently, the Minority Media & Telecom Council asked the FCC to suspend enforcement of the EEO rules for three months. (You can read MMTC’s request here; alternatively, you can read our monthly Memo to Clients summary of the request here.) At this point, it’s anybody’s guess as to whether the FCC will grant MMTC’s request – although, frankly, if even MMTC is asking that EEO enforcement be suspended, the Commission really should be wondering what’s wrong with this picture.

But regardless of what the Commission eventually does, it might want to take this opportunity to clean up at least one aspect of its EEO “Broadcast Mid-Term Report” (FCC Form 397) that seems oddly and unnecessarily confusing, if not flat-out inconsistent.

Form 397 is a cute little three-page form. The first page calls on the reporting licensee to provide its name and contact information and identify the stations covered by the report. No real surprises there.

But on page two, Section I consists of the following single yes/no question:

Does your station employment unit employ fewer than five full-time employees, if television, or fewer than eleven full-time employees, if radio?

Not an overly complicated question. Then the form reads:

If yes, you do not have to file this form with the FCC. However, you have the option to complete the certification below, return the form to the FCC, and place a copy in your station(s) public file.

This last instruction raises an obvious question – i.e., who in his right mind would “opt” to file a form that the FCC specifically says does not have to be filed? – but that’s not the problem. Rather, the problem arises from the fact that the “filing instructions” located immediately above Section I include the following:

If a television station employment unit employs fewer than five full-time employees, only the first two pages of this report need be filed.

So does that mean that TV stations with fewer than five have to file a report (even if the report is limited to only two pages), or does it not have to file anything at all (unless, of course, it opts to)?

Oh, and did we mention that the underlying rule (47 C.F.R. §73.2080(f)(2)) provides that

The Commission will conduct a mid-term review of the employment practices of each broadcast television station and each radio station that is part of an employment unit of more than ten full-time employees four years following the station's most recent license expiration date as specified in §73.1020.

Let’s get this straight. If you’re a TV licensee with fewer than five full-timers, according to Form 397 either “you do not have to file this form” or “only the first two pages of this report need be filed”. Huh? And Section 73.2080(f)(2) isn’t much help in sorting this out, since that section could be read to say that mid-term reports are expected from TV stations with more than ten FT employees – even though the 2002 Report and Order adopting the rules makes reasonably clear (check out Paragraph 153) that the Commission intended to limit mid-term EEO reviews to TV stations with five or more FT employees.

There is at least one possible way (see “Suggested Solution”, below) to twist this regulatory Rubik’s cube to make all the seemingly incongruous parts look consistent, but really, would it be that hard for the FCC to take the time to articulate its requirements clearly and consistently in the first place? Sure, we know that the number of TV stations with fewer than five full-time employees may be limited, but is that any excuse for at-best-ambiguous-at-worst-hopelessly-inconsistent forms?

[Suggested Solution:

Step 1: Understand that Section 73.2080(f)(2)’s clause reading “that is part of an employment unit of more than ten full-time employees” refers only to the term “each radio station”, and not to “each broadcast television station”.  That reading is not absolutely dictated by the grammatical structure of the particular sentence in question, but it’s also not clearly foreclosed by it.

Step 2: Since “television station” in Section 73.2080(f)(2) is not modified by the “more than ten” clause (see Step 1), refer back to the prefatory language of Section 73.2080(f). That language limits the reach of that section (including its subsections, such as 73.2080(f)(2)) to employment units with “five or more persons in full-time positions, except where noted”. Thus, the term “television station” as it appears in 73.2080(f)(2) can be read to be limited to TV stations with five or more full-timers. That assumes, of course, that the “except where noted” phrase in the preface is intended to refer to – and except out – the “more than ten” clause in (f)(2). Again, that assumption is not absolutely dictated by the rules’s language, but it’s also not clearly foreclosed by it. 

Step 3:   Assume that the FCC really means it when it says (in Section I of Form 397) that TV licensees with fewer than five FT employees “do not have to file this form with the FCC”.

Step 4: Assume that, when the form’s instructions say that “only the first two pages of this report need be filed” by TV licensees with fewer than five FT employees, it really means that those pages need be filed only if the licensee chooses to go ahead and file a report even though it doesn’t have to.

End result: TV employment units with fewer than five full-time employees need not file any mid-term EEO reports.]