Federal Contractor Employment Law
A federal contractor refers to an agreement between a person or entity with a department or an agency of the federal government to provide services, supply or for other work. These contractors are governed by a set of special employment laws and regulations different from those in the private sector. The Office of Federal Contract Compliance Program (OFCCP) is tasked with the duty of enforcing these laws. It administers and enforces the following laws: Executive Order 11246, Section 503 of the Rehabilitation Act of 1973 and the Vietnam Era Veteran Readjustment Assistance Act.
An individual is required to meet the following Equal Employment Opportunities (EEO) requirements before being considered for a federal government contract:
- Discourage and prevent discrimination.
- Ensure proper records are kept.
- Ensure equal employment opportunities posters are posted accordingly.
- The inclusion of an equal employment opportunity statement in job advertisements.
- Assist the OFCCP in compliance evaluation and complaint investigation.
- Ensure proper filing of annual equal employment opportunities (EEO-1) reports.
Federal contractors have to meet these special set of requirements from the federal government:
- Use of E-verify system: this is a fast and accurate Internet-based system that enables the federal contractor to verify their employee’s eligibility. It compares data entered on an employee’s form 1-9(Employee Eligibility Verification) with data from the Department of Homeland Security and the Social Security Administration. Following this procedure, the federal government ensures it works with companies using legal workers and helps the contractors to comply with the law.
- Federal contractors are also required to provide a drug-free work area. The Drug-Free Workplace Act of 1988 is aimed at improving workers’ safety and health.
In addition, federal contractors are subject to nondiscrimination and affirmative action procedures. Affirmative actions are a series of positive and proactive measures taken to promote equal employment opportunities eliminate discrimination and the inclusion of previously excluded individuals. These laws and regulations include:
- Executive Order 11246: all federal contractors are forbidden from discriminating employment by race, color, sex, sexual orientation, religion, natural origin and gender identity.
- Section 503 of the Rehabilitation Act of 1973: all federal contractors are required to take affirmative actions to recruit, train, employ and promote qualified persons with disabilities.
- The Vietnam Era Veteran Readjustment Assistance Act: federal contractors are required to take affirmative actions to recruit, train, employ and promote veterans. These include veterans disabled in war or those who have left the army in a period not longer than three years from discharge.
To ensure employees working for federal contractors are well informed when negotiating for fair salaries, the contractors are subject to pay transparency. This means an employee is aware of how much their colleagues are paid.
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