An Overview of the WBE Decertification and Appeals Process

By: Danielle Dietrich

If you are a business owner who has obtained the Women Business Enterprise (WBE) certification from the Women's Business Enterprise National Council (WBENC), you may wonder what could lead to the loss of your certification and how to avoid it. In this blog post, we will explain the decertification procedures for WBE certification, based on the WBENC Standards and Procedures document.

WBEs may be de-certified by the Regional Partner Organization (RPO) that processed their certification for any of the following reasons:

• If the business entity's ownership and/or control by women has changed to the extent that the business is no longer a bona fide WBE;
• If due to a challenge or some other reason, including WBENC Compliance Reviews, a business entity's current certification eligibility is re-examined, and the business is found not to be a bona fide WBE;
• If a business is found to be engaging in business practices on any of the member's projects that circumvent the intent of the WBE programs.

If any of these situations occur, the RPO will notify the WBE of the decertification decision and summarize the reasons for the decision in writing within ten (10) business days of the determination.

The WBE has the right to appeal the decertification decision to the local RPO Board of Directors first, and then to the WBENC Board of Directors.

The local appeal process involves the following steps:

• The WBE may request a meeting with the RPO's Executive Director or President to discuss the specific reasons for the decertification. This meeting is for informational purposes only and does not constitute a hearing or appeal. It is important to know that the scheduling of this meeting does not change any of the appeal deadlines.
• The WBE can appeal the Executive Director's or President's decision by making a request in writing to the RPO Board of Directors no later than thirty (30) days from the date of the decertification letter.
• The RPO Board of Directors will contact the WBE to schedule an appeal date, if deemed necessary. During the appeal, the RPO Appeals Committee (who is required to be independent of those who made the initial decision) will consider all information as presented during the initial certification application process, as well as any relevant and/or requested additional information. Changes in the business' ownership and control after the WBE's request for certification will not be considered as evidence during the appeal process.
• Within thirty (30) days of the request for appeal, the Local Appeals Committee will convene, review the file, and make a recommendation to the RPO Board of Directors.
• Within fifteen (15) days of the Appeal Committee's recommendation, the RPO Board of Directors will evaluate the recommendation and make one of the following determinations: overturn the decertification decision and reinstate the WBE's certification or uphold the decertification decision and deny the WBE's certification. The WBE will be informed of the decision in writing within seven (7) days.

If that yields an unfavorable decision, the next step is the national appeal process, which requires the following:

• If the WBE believes that the decertification decision by the RPO and its Board of Directors is in error, it may file an appeal in writing with the WBENC Board of Directors no later than thirty (30) days from the date of the appeal letter upholding the decertification.
• The WBENC President will determine, based on the information provided by the WBE and the RPO, whether there is reason to evaluate the appeal. Changes in the business' ownership and control after the WBE's request for certification will not be considered as evidence during the appeal process.
• If the WBENC President determines that there is evidence for appeal, the documentation will be forwarded to the National Appeals Sub-Committee for review at the next convened meeting.
• The National Appeals Sub-Committee will convene within one-hundred twenty (120) days to discuss the file and supporting documentation and to formulate a recommendation to the WBENC Board of Directors via the WBENC President to either: overturn the decertification decision and approve the WBE's certification or uphold the decertification decision and deny the WBE's certification.
• The Chairperson of the Certification Committee will communicate the committee's recommendation to the Board of Directors at scheduled Board Meetings.
• The WBENC President will communicate the final decision and its supporting rationale to the RPO Executive Director or President and the WBE.

As you can see, the decertification procedures for WBE certification are complex and time-consuming. You will be required to advocate for why your company meets the requirements to be a WBE – something that does not come natural to most business owners. That’s why hiring an attorney to help advocate for you could be worth the investment.

If you have any questions about WBE certification, the application process, or the appeal process, please contact Danielle Dietrich, Esq. at ddietrich@potomaclaw.com or 412-449-9141.

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