Federal Contractor Requirements

Federal contractor nondiscrimination and other basic requirements

You have a responsibility to meet additional obligations as a federal contractor.

As a federal contractor or subcontractor, you’re subject to certain laws depending on the value of the contracts you hold. If you have contracts of $10,000 or more, you’re subject to Executive Order 11246 and have the responsibility to not discriminate against job applicants or employees on the basis of race, color, sex, sexual orientation, gender identity, religion, and national origin. You also have the responsibility to not discriminate against job applicants or employees who ask about, discuss or disclose their compensation or that of other employees, subject to certain limitations.

 

If you have a contract or subcontract of $15,000 or more, you’re also subject to Section 503 of the Rehabilitation Act and have the responsibility to not discriminate against job applicants or employees on the basis of disability.

 

Finally, if you have a contract or subcontract of $150,000 or more, you’re also subject to the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) and have the responsibility to not discriminate against job applicants or employees because of status as a protected veteran.

 

In addition to the nondiscrimination requirements, you have related basic responsibilities such as:

 

  • maintaining records on all personnel and employment actions for two years (or one year for contractors with less than 150 employees or $150,000 in contracts);
  • including Equal Opportunity Clauses in all subcontracts and purchase orders; and
  • stating in employment advertising that you don’t discriminate on any of the protected bases. You may list them all (race, color, sex, sexual orientation, gender identity, religion, national origin, disability, and status as a protected veteran), or you may simply use “equal opportunity employer” plus “disability” and “veteran” or “vet.” Remember, if you are subject to Section 503 and VEVRAA, “disability” and “veteran” or “vet” must be explicitly included in any employment advertising tagline.
Coworkers with stacked hands at the office

Questions?
We’re here to help.

We are committed to helping you understand your responsibilities as an employer. Many questions about your responsibilities may be answered by using the following elaws (Employment Laws Assistance for Workers and Small Businesses) Advisors:

For additional assistance, please contact:

Office of Federal Contract Compliance Programs (OFCCP): 1-800-397-6251 (Please dial 7-1-1 to access telecommunications relay services )

Our assistance is free and confidential.

Need more information?

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.