******************************************************** NOTICE ******************************************************** This document was converted from WordPerfect to ASCII Text format. Content from the original version of the document such as headers, footers, footnotes, endnotes, graphics, and page numbers will not show up in this text version. All text attributes such as bold, italic, underlining, etc. from the original document will not show up in this text version. Features of the original document layout such as columns, tables, line and letter spacing, pagination, and margins will not be preserved in the text version. If you need the complete document, download the WordPerfect version or Adobe Acrobat version, if available. ***************************************************************** Before the FEDERAL COMMUNICATIONS COMMISSION Washington, D.C. 20554 In re Applications of ) ) Jacor Broadcasting Corporation ) File Nos. BR-960530XV, ) BRH-960530XY, For Renewal of Licenses of ) BR-960530XW, and Stations WLW(AM)/WEBN-FM/ ) BRH-960530XZ WCKY(AM)/WOFX-FM, Cincinnati, Ohio ) MEMORANDUM OPINION AND ORDER Adopted: June 5, 1997; Released: June 12, 1997 By the Commission: I. INTRODUCTION 1. The Commission has before it for consideration: (i) the license renewal appli-cations for the above-captioned stations filed by Jacor Broadcasting Corporation ("licensee" or "Jacor"); (ii) a Petition to Deny filed by the National Rainbow Coalition ("Rainbow") regarding each station; (iii) the licensee's opposition to the petition; (iv) Rainbow's reply to the licensee's opposition; (v) the licensee's response to a staff letter of inquiry; and (vi) Rainbow's comments on the licensee's response to a staff letter of inquiry. 2. Rainbow alleges that the licensee violated the Commission's Equal Employment Opportunity ("EEO") Rule and policies, 47 C.F.R.  73.2080. Accordingly, Rainbow requests that we conduct an investigation of the stations' employment practices pursuant to Bilingual Bicultural Coalition on Mass Media, Inc. v. FCC, 595 F.2d 621 (D.C. Cir. 1978), and designate the renewal applications for hearing. The licensee denies Rainbow's allegations and requests unconditional renewal. 3. Rainbow derived its factual allegations from WLW(AM)/WEBN-FM/ WCKY(AM)/WOFX-FM's (the "stations") program and annual employment reports. As a threshold matter, we found that Rainbow made a prima facie showing that grant of the renewal applications would have been inconsistent with the public interest. Communications Act of 1934, as amended,  309(d)(1), 47 U.S.C.  309(d)(1); Astroline Communications Co. v. FCC, 857 F.2d 1556 (D.C. Cir. 1988) ("Astroline"). II. DISCUSSION 4. Section 73.2080 of the Commission's Rules requires that a broadcast licensee refrain from employment discrimination and establish and maintain an equal employment opportunity program reflecting positive and continuing efforts to recruit and promote qualified women and minorities. When evaluating EEO performance, the Commission focuses on the licensee's efforts to recruit and promote qualified women and minorities and the licensee's ongoing assessment of its EEO efforts. Such an assessment enables the licensee to take corrective action if qualified women and minorities are not present in the applicant and interview pools. The Commission also focuses on any evidence of discrimination by the licensee. See 47 C.F.R.  73.2080(a), (b), and (c). 5. A review of the licensee's 1996 EEO Program Report, opposition, and response to a staff letter of inquiry reveals that, during the period from October 1, 1993, to October 1, 1996, the stations had 118 full-time hiring opportunities, 90 of which were for upper-level positions. The licensee recruited for 109 (92.4%) of the 118 full-time positions. In its response to a staff letter of inquiry, the licensee reports that, between October 1, 1993 to October 1, 1996, it contacted 22 recruitment sources, which included several minority and women's organizations, colleges, and employment agencies. In addition, the licensee states that it advertised most of its openings in the Cincinnati Enquirer, a general circulation newspaper, and the Cincinnati Herald, which the licensee describes as a weekly newspaper targeted to the city's Black community. The licensee also received numerous referrals from its staff and clients. The licensee asserts that it announced over 90 percent of its job openings to a variety of minority and female organizations and that it participated in several career fairs which were specifically designed to attract minority candidates. The licensee states that it did not follow the "usual recruitment procedures" for nine openings because most of them were for talent or management positions for which the stations identified a single person, usually through an employee referral or prior experience with the licensee, who the licensee claims "was uniquely qualified to fill the position." 6. The licensee provided applicant and interview data for the majority of its hiring opportunities, but could not locate data with respect to four hiring opportunities, asserting that files with respect to those hiring opportunities are "missing." The licensee also could not provide the referral source relied upon by some of its applicants and hirees and, in a few instances, did not have information about the race or national origin of some of its applicants. For those positions for which recruitment efforts were made, the licensee's inquiry response reveals that the stations received a total of 2,276 applicants overall, including 220 (9.7%) minorities. Specifically with respect to upper- level positions, the licensee reports that it received a total of 1,503 applicants, including 111 (7.4%) minorities. The licensee interviewed a total of 912 applicants overall, including 138 (15.1%) minorities. Of that total, 673 applicants, including 85 (12.6%) minorities, were interviewed for upper-level positions. The licensee had only 88 (62 upper-level) applicant and interview pools because multiple hires were made from 13 of these pools. Minorities were present in 66 of 88 (75%) applicant pools overall, and in 41 of 62 (66%) applicant pools for upper-level positions. Minorities were present in 56 of 88 (64%) interview pools overall, and in 36 of 62 (58%) interview pools for upper-level positions. The licensee reports that it hired 11 minorities (9.3%) overall, including four minorities (4.4%) for upper-level positions. 7. For 109 successful applicants, for positions where the licensee recruited, the record reveals that they were referred by the following sources: staff referral or "friend" (55); Cincinnati Enquirer (15); internal posting (7); mail-in (6); client referral (5); call-in (5); Radio & Records (3); Associated Press (2); J.M. Peters Service (1); Inside Radio (1); Cincinnati Herald (1); Urban League (1); rehire (1); and both the GCRBA Career Fair and the Urban League listed by the same applicant. The licensee did not know the recruitment source for five hirees, although recruitment efforts were made for these positions. For 10 of the 11 successful minority applicants, the record reveals that they were referred by the following sources: staff referral (2); Cincinnati Enquirer (2); Cincinnati Herald (1); Urban League (1); internal posting (1); "friend" (1); GCRBA Career Fair/Urban League (1); and J.M. Peters Service (1). No recruitment efforts were made with respect to one minority hire for an upper-level position. 8. In its petition, Rainbow contends that the stations' EEO program "appears to be a failure." Rainbow points out that only one of the 29 upper-level jobs at the stations filled during the renewal year period, May 1, 1995, to April 30, 1996, was filled with a minority. Rainbow asserts that the fact that the stations could find only three qualified minority applicants out of a total of 158 during this period suggests discrimination in the selection process. 9. In its opposition, Jacor contends that it has made "a substantial and consistent effort" to attract and hire minority candidates. Jacor asserts that it refers essentially all of its job openings to minority organizations and has developed personal recruiting contacts with at least three of these organizations. It points out that the stations' minority employment is at 58% of parity, in excess of the Commission's processing guidelines, and that for the year ending September 30, 1996, of a total of 41 job openings, the stations hired six minorities, a rate equal to 121% of parity. It acknowledges that none of the six minority candidates hired during the renewal year period was hired for an upper- level position, but points out that one minority was subsequently promoted to an upper-level position. Jacor denies that it engaged in any discrimination in its employment practices at the stations and contends that Rainbow has not presented any substantial or material question of fact which would warrant a hearing or further inquiry. 10. In its reply, Rainbow points out that with respect to 12 hiring opportunities at the stations, no minorities applied, none was interviewed, and no minority or female organizations were listed as referral sources, suggesting that none was contacted. Rainbow contends that although the licensee "is an equal opportunity employer for bottom five category positions," it does not appear that the licensee has engaged in meaningful recruitment with respect to upper-level positions, adding that Jacor's frequent use of word-of-mouth recruitment resulted in a disproportionate number of White hirees. 11. In its comments on the licensee's response to a staff letter of inquiry, Rainbow commended the licensee for "maintaining good records." Rainbow further comments that the nature of the discrimination it initially alleged in its petition is further elucidated by the data provided by the licensee. Since its review of additional information provided by the licensee, Rainbow now concludes that the "record exculpates Jacor in some respects and inculpates Jacor in other respects." Rainbow maintains, nonetheless, that the record still shows that the licensee "disregarded its EEO responsibilities" during the review period and practiced "intentional discrimination" through the recruitment process. Rainbow states that its analysis of the stations' employment record suggests the following conclusions: (1) that word-of-mouth recruitment "operates adversely to minorities for sales positions -- which accounted for 51(43.2%) of the 118 hires" (noting that only two sales hires were minorities); (2) that word-of-mouth recruitees in all job categories "had a fast track to the interview room"; (3) that "among the word-of-mouth recruitees, White and minority applicants were treated equally"; (4) that the licensee "appears to give minority applicants from nontraditional sources a fair chance to prove their qualifications"; and (5) that "[e]xtensive opting-out of EEO recruitment has been permitted for nearly half of top four category positions, evidently to the detriment of opportunities for minority employment." Rainbow contends that the licensee's failure to take remedial steps to improve minority recruitment for its upper-level vacancies, coupled with the "heavy use of word-of-mouth contacts generating exclusively White applicants for sales positions," is suggestive of a discriminatory intent, thus warranting a hearing. 12. Our review of the stations' record raises no substantial and material questions of fact warranting designation for hearing and that grant of the renewal applications for Stations WLW(AM), WCKY(AM), and WOFX-FM would be consistent with Section 309(k) of the Communications Act of 1934, 47 U.S.C.  309(k). See Astroline. However, we will not take action on Station WEBN-FM's license renewal application at this time because of other pending matters not related to EEO compliance. Furthermore, no specific evidence of actual discrimination has been alleged, and we find no indication of employment discrimination from the record. The record reveals that the licensee recruited, attracted, interviewed, and hired minority applicants during the review period. Although a significant number of successful applicants were hired through informal means of recruitment (i.e., through staff referrals, client referrals, or "friends"), the record reflects that this method of recruitment produced four successful minority hires. Thus, it is not evidence of discrimination in this case. Moreover, in addition to informal recruitment, the licensee conducted recruitment with general sources and minority-specific organizations. 13. Rainbow alleges employment discrimination specifically with respect to the stations' hires for sales positions. As we have previously stated, however, the Commission focuses on efforts concerning overall positions as well as upper-level positions, taken as a group, and not on individual job categories. In re Applications of Southern Skies Corp. and Arkansas Skies Corp. for Renewal of Licenses of Station KMVK-FM, Benton, Arkansas, 11 FCC Rcd 19176, 19180-19181 (1996). In any event, the record reveals that the stations' 51 hirees for sales positions included two minorities. The record further reveals that there were a total of 38 such applicant and interview pools, and that multiple hires were made from nine of these pools. Minorities were present in 25 (66%) of the applicant pools and 22 (58%) of the interview pools for sales positions. We find that the stations' overall record, which reflects employment of minorities in a variety of jobs, including jobs in the upper-level categories, raises no question of discrimination. Therefore, after consideration of the entire record, we find that renewal of the licenses for Stations WLW(AM), WCKY(AM), and WOFX-FM is in the public interest. 14. While we grant renewal of the stations' licenses, nevertheless, we are troubled by several findings. First, the stations failed to recruit for nine vacancies. Although the stations recruited for most of its vacancies (92.4%), we remind the licensee that, under our EEO Rule, 47 C.F.R.  73.2080, broadcast stations have an obligation to recruit actively for all of their vacancies. Second, the licensee failed to maintain complete records of its recruitment efforts. Jacor reports that files for four hirees were "missing"; that it could not provide the referral source for some of its applicants and hirees; and that, in a few instances, it could not provide information about the race or national origin of its applicants and interviewees. We remind the licensee of the importance of maintaining complete records of its recruitment efforts to ensure adequate self-assessment of the stations' EEO program. See 47 C.F.R.  73.2080(b) and (c). Third, it does not appear that the licensee engaged in meaningful self-assessment of its program. In this regard, we are troubled that a significant number of the stations' hires [63 out of 109 (57.8%)], for which recruitment efforts were made, resulted from staff or client referrals. Although three minority hires (all for lower-level positions) were referred by the stations' staff, the stations' use of such informal recruitment was generally unproductive in yielding qualified minority applicants, especially for upper-level positions. Under the EEO Rule, licensees are required to engage in a continuous program of positive efforts to attract a diverse pool of qualified applicants for vacancies as they occur and to avoid use of recruitment techniques that have the effect of discriminating against qualified minority groups or females. While we recognize that staff referrals can often be a productive source of qualified minority applicants, the heavy use of such recruitment techniques has also been held to be an improper practice if it operates to the detriment of minority and women applicants. See Triple R, Inc., 42 RR 2d 907 (1979). It appears that the licensee failed to self-assess its program adequately by not recognizing the ineffectiveness of its informal recruitment methods and by not varying or using other traditional outside recruitment sources, especially minority-specific sources, in order to attract qualified minority applicants. Accordingly, given our findings herein, while we grant renewal of the licenses for Stations WLW(AM), WCKY(AM), and WOFX-FM, we admonish the licensee for failing to recruit for all vacancies as required under our EEO Rule. Furthermore, we impose reporting conditions in order to monitor the licensee's self-assessment efforts and record-keeping practices. III. ORDERING CLAUSES 15. Accordingly, IT IS ORDERED that the petition to deny filed by the National Rainbow Coalition concerning the renewal applications for Stations WLW(AM)/WEBN-FM/ WCKY(AM)/WOFX-FM IS DENIED. 16. IT IS FURTHER ORDERED that the renewal applications filed by Jacor Broadcasting Corporation for Stations WLW(AM), WCKY(AM), and WOFX-FM ARE GRANTED. 17. IT IS FURTHER ORDERED that Jacor Broadcasting Corporation IS ADMONISHED for failing to recruit for nine vacancies, in violation of the Commission's EEO Rule, 47 C.F.R. 73.2080. 18. IT IS FURTHER ORDERED that the licensee of Stations WLW(AM)/WEBN- FM/WCKY(AM)/WOFX-FM comply with the EEO reporting conditions specified herein. 19. IT IS FURTHER ORDERED that the licensee of Stations WLW(AM)/WEBN- FM/WCKY(AM)/WOFX-FM submit to the Commission an original and one copy of the following information on June 1, 1998, June 1, 1999, and June 1, 2000: (a) Two lists divided by full-time and part-time vacancies during the 12 months preceding May 1, 1998, for the first report, May 1, 1999, for the second report, and May 1, 2000, for the third report, indicating the job title and FCC job category, date of hire, the race or national origin, sex and the referral source of each applicant and interviewee for each job and the race or national origin and sex of the person hired. These lists should also note which recruitment sources were contacted; (b) A list of employees as of the May 1, 1998, payroll period for the first report, May 1, 1999, payroll period for the second report, and May 1, 2000, payroll period for the third report, by job title and FCC job category indicating full-time or part-time status (ranked from highest paid classification), date of hire, sex and race or national origin; and (c) Details concerning the stations' efforts to recruit minorities and women for each position filled during the 12 months preceding May 1, 1998, for the first report, May 1, 1999, for the second report, and May 1, 2000, for the third report, including identification of sources used and indicating whether any of the applicants declined actual offers of employment. In addition, the licensee may submit any relevant information with regard to the stations' EEO performance and efforts thereunder. 20. IT IS FURTHER ORDERED that Jacor Broadcasting Corporation's request that the first column (the job titles for each position) of Attachment "B" of its inquiry response be accorded confidentiality IS GRANTED pursuant to Sections 0.457 and 0.459 of the Commission's Rules. 21. IT IS FURTHER ORDERED that copies of this Memorandum Opinion and Orderbe sent to the licensee of Stations WLW(AM)/WEBN-FM/WCKY(AM)/WOFX-FM and to the National Rainbow Coalition by Certified Mail -- Return Receipt Requested. 22. The reports are to be filed with the Acting Secretary of the Commission for the attention of the Mass Media Bureau's EEO Branch. FEDERAL COMMUNICATIONS COMMISSION William F. Caton Acting Secretary