Federal Contractors

Overview Compliance Assistance Materials Basic Information Fact Sheets E-Tools Posters Recordkeeping / Reporting Applicable Laws and Regulations Related Topics and Links DOL Contacts Return to Main Menu

Frequently Asked Questions What is Section 503 of the Rehabilitation Act of 1973? Do I have to file any forms with the Veterans' Employment and Training Service?

OVERVIEW

Many generally applicable employment laws, such as the Fair Labor Standards Act and the Occupational Safety and Health Act, apply to federal contractors. In addition, there are a number of federal laws that apply only to federal contractors. Not all of these laws, which are described below, cover all contractors. See the elaws FirstStep Advisor for assistance in determining which laws apply to a specific business.

The Office of Federal Contract Compliance Programs (OFCCP) of the U.S. Department of Labor's Employment Standards Administration (ESA) is responsible for administering the laws requiring employers doing business with the federal government to comply with the nondiscrimination and affirmative action requirements set forth under Executive Order 11246, the Rehabilitation Act of 1973, Section 503, and the Vietnam Era Veterans' Readjustment Assistance Act (VEVRAA). These laws prohibit discrimination and require affirmative action by federal contractors with regard to race, color, religion, sex, national origin, and status as a qualified individual with a disability or a protected veteran. All federal contractors and subcontractors with contracts exceeding specific thresholds also must file a VETS-100 report with the Veterans’ Employment and Training Service.

ESA’s Wage and Hour Division administers laws and regulations requiring minimum wages and fringe benefits to be paid to workers performing construction work on federally-funded contracts or providing services to the federal government. These laws are: the Davis-Bacon and Related Acts (for construction); the Contract Work Hours and Safety Standards Act; the McNamara-O'Hara Service Contract Act (for services); and the Walsh-Healey Public Contracts Act (for manufacturing).

The Wage and Hour Division also enforces the Copeland "Anti-Kickback" Act which precludes covered contractors and subcontractors engaged in building construction or repair from inducing an employee to give up any part of the compensation to which he or she is entitled under his or her contract of employment.

ESA’s Office of Labor-Management Standards (OLMS) and OFCCP jointly administer Executive Order 13201 which requires government contracts and subcontracts to include an employee notice clause (Beck Poster) requiring non-exempt federal contractors and subcontractors to post notices informing their employees that they have certain rights related to union membership and use of union dues and fees.

COMPLIANCE ASSISTANCE MATERIALSS

Employment Law Guide (See Table of Contents, Sections F and G) - Provides information to help employers comply with the laws and regulations administered by the Department of Labor, including the laws governing wages and fringe benefits, working conditions and equal opportunity under federal contracts.

Equal Employment Laws:

• Federal Contract Compliance Manual – Provides information on the provisions of the Vietnam Era Veterans' Readjustment Assistance Act of 1974 and the Rehabilitation Act of 1973.

• Small Business Guide - Provides small businesses that have federal contracts or subcontracts an introduction to the basic equal employment opportunity (EEO) requirements of Executive Order 11246.

• Office of Federal Contract Compliance Programs Frequently Asked Questions

• Sample AAP (PDF) – Provides guidance to federal contractors that employ fewer than 150 employees on preparing an Affirmative Action Plan (AAP).

• Small Contractor AAP Job Group Availability Determinations – Provides information on establishing job groups, and comparing employment of minorities and women within those job groups to the availability of minorities and women who are "available" for employment.

• Federal Contractor Program Information Page - Provides information on the Veterans' Employment and Training Services' Federal Contractor Program, the Federal Contractor Job Listing Program, and the VETS-100 reporting requirements.

• FAQs about the VEVRAA Federal Contractor Program - Provides information on affirmative action requirements to hire and promote special disabled veterans, veterans of the Vietnam era, recently separated veterans, and any other veterans who served on active duty during a war.

• Construction Contractors TA Guide – This Technical Assistance Guide helps federal and federally-assisted construction contractors and subcontractors comply with the federal equal employment opportunity laws and regulations.

• Filing a Complaint - Individuals may file a complaint with OFCCP if they believe they have been discriminated against by federal contractors or subcontractors.

Davis-Bacon and Other Wage Laws:

• Davis-Bacon and Related Acts Web Page - Provides information on the Acts that require payment of prevailing wages and fringe benefits on federal construction contracts.

• McNamara-O'Hara Service Contract Act (SCA) Web Page - Provides information on the wage and benefit requirements of the SCA.

• Wage Determinations On-Line - Provides Service Contract Act and Davis-Bacon Act wage determinations for each official contract action.

• SCA Compliance Assistance Memorandum 198 – Wage and Hour’s May, 2005, memorandum describing fringe benefit changes.

• Service Contract Act FAQs

• Walsh-Healy Public Contracts Act (PCA) Compliance Assistance Web Page

• Copeland “Anti-Kickback” Act Compliance Assistance Web Page

• Filing a Complaint - Individuals may file a complaint with a Wage and Hour Division office or call the Toll-Free Wage and Hour HelpLine at 1-866-4-US-WAGE, regarding potential violations of the Davis-Bacon Act and other wage laws.

FACT SHEETS

• E.O. 13201 - The Beck Poster - Provides information on the requirement that government contracts and subcontracts include an employee notice clause requiring non-exempt federal contractors and subcontractors to post notices (the Beck poster) regarding employee rights related to union membership and use of union dues and fees.

• Payment of Special Minimum Wages to Workers with Disabilities Who Are Employed on Federal Service Contracts Subject to the Service Contract Act.

Equal Employment Laws:

• Facts on Executive Order 11246 – Describes the equal employment and affirmative action requirements for federal contractors and subcontractors.

• Interpretative Standards for Systemic Compensation Discrimination (Interpretative Standards) - Provides information on the standards for interpreting the nondiscrimination requirements of Executive Order 11246.

• Federal Contractor Program Fact Sheet – Provides information on the VETS-100 reporting requirements for federal contractors.

• The Americans with Disability Act and Section 503 Fact Sheet – Describes the two laws affecting individuals with disabilities.

• Vietnam Era Veterans' Readjustment Assistance Act Fact Sheet - Describes the responsibilities of federal contractors and subcontractors under VEVRAA to take affirmative action and provide equal opportunity in the hiring of veterans.

• Hiring Veterans Fact Sheet

Davis-Bacon and Other Wage Laws:

• Payment of Special Minimum Wages to Workers with Disabilities Who Are Employed on Federal Service Contracts Subject to the Service Contract Act

E-TOOLS

• elaws Federal Contractor Compliance Programs Advisor - Helps answer basic questions about coverage and compliance issues related to the equal employment opportunity laws administered by the Office of Federal Contract Compliance Programs.

POSTERS

• OFCCP Equal Employment Opportunity Poster

• Davis-Bacon Poster (Government Construction)

• Notice to Employees Working on Government Contracts  - Contractors subject to the McNamara-O'Hara Service Contract Act or the Walsh-Healey Public Contracts Act must post this poster. (En Español )

• Notice to Workers with Disabilities (Fair Labor Standards Act, McNamara-O'Hara Service Contract Act and Walsh-Healey Public Contracts Act) (En Español)

• Beck Poster: Notice of Employee Rights Concerning Payment of Union Dues for Contractors Subject to the Railway Labor Act – E. O. 13201

• The elaws Poster Advisor – Helps determine which poster(s) employers are required to display. Posters may be downloaded and printed directly from the Advisor free of charge.

RECORDKEEPING / REPORTING

Equal Employment Laws:

• EEO-1 Report – Provides information on the EEO-1 Report which is required of employers, including federal contractors. Information on the EEO-1 Report can be obtained from the Equal Employment Opportunity Commission (EEOC) Web site; by e-mailing EEOC at e1.techassistance@eeoc.gov; or by calling 1-866-286-6440 (toll free). See also 41 CFR Part 60-1.7.

• Executive Order 11246 and the Rehabilitation Act of 1973, Section 503 - Require federal contractors to maintain personnel or employment records for a period of two years from the date of the making of the personnel record or the personnel action, whichever occurs later.

• VETS-100 – Requires federal contractors and subcontractors to complete an annual report showing the numbers of qualified special disabled veterans, veterans of the Vietnam era, and any other protected veterans hired or employed during the reporting period.

Davis-Bacon Act and Other Wage Laws:

• Davis-Bacon and Related Acts (DBRA) - Covered contractors must maintain payrolls and basic records and submit certified weekly payrolls. See 29 CFR 5.5(1)(3).

• McNamara-O’Hara Service Contract Act (SCA) – Certain basic records must be maintained by covered contractors and subcontractors for three years from completion of the work. See 29 CFR 4.6(g) and 29 CFR 4.185.

• The Copeland “Anti-Kickback” Act and the Contract Work Hours and Safety Standards Act - Each covered contractor or subcontractor must provide a weekly statement of the wages paid to each of its employees engaged in covered work. See WH-347 "Payroll" (For Contractors Optional Use).

APPLICABLE LAWS AND REGULATIONS

• Executive Order 13201 -  requires government contracts and subcontracts to include an employee notice clause requiring non-exempt federal contractors and subcontractors to post notices informing their employees that they have certain rights related to union membership and use of union dues and fees. See 29 CFR Part 470.

Equal Employment Laws:

• Executive Order 11246 - Prohibits covered federal contractors and subcontractors and federally assisted construction contractors and subcontractors from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin; and it requires them to take affirmative action to ensure that equal opportunity is provided in all aspects of their hiring and employment practices. See 41 CFR Parts 60-1 to 60-3.

• Section 503 of the Rehabilitation Act - Requires employers with federal contracts or subcontracts that exceed $10,000, and contracts or subcontracts for indefinite quantities to take affirmative steps to hire, retain, and promote qualified individuals with disabilities. See 41 CFR Part 60-741 and 41 CFR Part 60-742.

• Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended - Requires covered federal government contractors and subcontractors to take affirmative action to employ and advance in employment specified categories of veterans protected by the Act, and prohibits discrimination against such veterans. See 41 CFR Chapter 60-250.

Davis-Bacon Act and Other Wage Laws:

• Davis-Bacon and Related Acts (DBRA) - Requires payment of prevailing wages to laborers and mechanics employed on federal and federally-assisted construction projects. See 29 CFR Parts 1, 3, 5, 6, and 7.

• McNamara O'Hara Service Contract Act (SCA) - Requires payment of prevailing wage rates and fringe benefits to service employees employed on contracts to provide services to the federal government. See 29 CFR Part 4.

• Walsh-Healey Public Contracts Act (PCA) - Provides for a minimum wage and prohibits employment of youth under 16 and convicts on federal contracts for the manufacture or supply of materials, supplies, articles, and equipment. See 41 CFR Part 50.

• Contract Work Hours and Safety Standards Act (Title I) - Requires contractors and subcontractors to pay laborers and mechanics employed in the performance of the contracts one and one-half times their basic rate of pay for all hours worked over 40 in a workweek. See 29 CFR Parts 4, 5, 6, and 8.

RELATED TOPICS AND LINKS

Equal Employment Laws:

See also - Compliance Assistance By Topic - Equal Employment Opportunity

• Preaward Contract Clearance Requests - Prior to awarding a contract of $10 million dollars or more, federal agencies are required to get clearance from OFCCP.
• Policy Directives - Provides access to OFCCP Policy Directives that have been issued as interpretative guidance.

• Disability Resources

• Equal Employment Opportunity Commission (EEOC) - The EEOC promotes equal employment opportunities for employees of most private employers, state and local governments, educational institutions, employment agencies, and labor organizations.

• Title VII of the Civil Rights Act - Prohibits employment discrimination based on race, color, religion, sex, and national origin (enforced by the EEOC).

• The Americans with Disabilities Act (ADA) - Primarily enforced by the EEOC, this Act prohibits discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities.

Davis-Bacon Act and Other Wage Laws:

See also Compliance Assistance By Topic - Wages and   Hours Worked - Wages under Federal Contracts.

• Wage Survey Form - Some contractors may be asked to submit wage data as part of the Wage Determination Survey. The WD-10 Form is an optional form to ensure consistency in submission of wage data.

Other Resources:

• Hire Vets First – Links to a comprehensive career Web site for hiring veterans of America's military.
• Uniformed Services Employment and Reemployment Rights Act (USERRA) - USERRA protects civilian job rights and benefits for veterans and members of Reserve components.

• The Drug-Free Workplace Advisor—Drug-Free Workplace Act of 1988 – The Act requires some federal contractors and all federal grantees to agree that they will provide drug-free workplaces as a precondition of receiving a contract or grant from a federal agency.