Written by:  Charles E. Little, Jr., SPHR

Compliance for Government Contractors

In order to play by the rules you must know them.

In our region, there are many companies of all sizes that have contracts with the federal government. Many of these companies do not realize if you have contracts with the federal government, there are certain things that you must do in order to be in compliance with federal laws that are a condition of maintaining these government contracts.

First, all government contractors must be Equal Employment Opportunity Employers (EEO).  All hiring decisions must be free from any and all discrimination made on the basis of race, color, gender, national origin, age, disability, marital status, military status or any other category protected by federal, state and local laws.

Second, the Office of Federal Contract Compliance Programs (OFCCP) is the federal agency that both administers and enforces the law.  Executive Order 11246, applies to federal contractors, and federally-assisted construction contractors and subcontractors who do business with the federal government of over $10,000 annually from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin.

Third, Government Contractors with 50 or more employees and $50,000 per year in government contracts are required by law to have and maintain a written Affirmative Action Plan for all of their locations.

Violations of this law can be extremely costly by way of fines, legal fees, and potential loss of the contracts themselves, as well as being black listed or debarred from ever getting future government contracts.

What this means is, what you don’t know can hurt you, and potentially put you out of business. If you are in business and have contracts with the federal government be sure that you do not discover these requirements only after you receive a letter from OFCCP’s regional office in Atlanta requesting a copy of your EEO 1 report, as well as your current Affirmative Action Program. 

Without these, you are subject to a detailed desk audit at your work site.                                                                                                                         

. . .Is Worth a Pound of Cure.” Ben Franklin