As a federal contractor or subcontractor, you may also have the responsibility to take proactive steps to employ and advance in employment people with disabilities and protected veterans. Whether or not your business is covered by these requirements depends on the type and dollar value[1] of the federal contract(s) or subcontract(s) you have, as well as the number of people you employ. If you have 50 or more employees and at least one contract of $50,000 or more, you must develop a written program for people with disabilities under Section 503 of the Rehabilitation Act of 1973. If you have 50 or more employees and at least one contract of $150,000 or more, you must also develop a written program for protected veterans under the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (VEVRAA).
[1] The dollar thresholds are subject to Federal Acquisition Regulation inflationary adjustments.
Non-Construction Contract Requirements
Non-construction, or “supply and service,” contractors or subcontractors must develop written programs, depending on whether your business meets the above thresholds. As a part of these obligations, you must also invite applicants and employees to voluntarily self-identify their disability and veteran status; analyze application and hiring data for individuals with disabilities and protected veterans; and maintain additional personnel and employment records.
While the requirements under Section 503 and VEVRAA don’t apply to federally assisted construction contractors and subcontractors, they do apply to direct federal construction contractors and subcontractors. If you hold direct federal construction contracts or subcontracts and meet the appropriate thresholds as detailed above, you will need to develop written programs under one or both of those . If covered by both laws, you may elect to develop one written plan that complies with both the Section 503 and VEVRAA requirements.
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The elaws (Employment Laws Assistance for Workers and Small Businesses) Advisors are a set of online tools developed by the U.S. Department of Labor to help employees and employers understand their rights and responsibilities under federal employment laws.
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