You have a responsibility to meet additional obligations as a federal contractor.
The U.S. Department of Labor is committed to helping you understand and adhere to the additional responsibilities you have towards your employees as an employer who does business with the Federal Government – in other words, a federal contractor or subcontractor. Please note that this list of common issues focuses on those that are employment-related and doesn’t cover all federal contractor requirements.
Employer
As a federal contractor or subcontractor, you’re subject to certain laws depending on the value of the contracts you hold.
If you have a contract or subcontract of more than $15,000,* you’re subject to Section 503 of the Rehabilitation Act of 1973 and have the responsibility to not discriminate against job applicants or employees on the basis of disability.
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 some related basic recordkeeping and notification responsibilities such as:
maintaining records on all personnel and employment actions;
including Equal Opportunity Clauses in all covered contracts and subcontracts; and
stating in employment advertising that you don’t discriminate on the basis of disability and status as a protected veteran. Remember, if you are subject to Section 503 and VEVRAA, “disability” and “veteran” or “vet” must be explicitly included in any employment advertising tagline.
*This dollar threshold is subject to Federal Acquisition Regulation inflationary adjustments.
Learn more about preventing discrimination in the workplace.
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 of the federal contract(s) or subcontract(s) you have, as well as the number of people you employ.
Non-Construction Contract Requirements and Construction Contract Requirements hold additional obligations.
Learn more about complying with additional requirements for federal contracts.
Executive Orders 13658 and 14026 establish minimum wage rates that must be paid to workers performing on or in connection with certain federal contracts, including certain construction and service contracts, including contracts subject to the Davis-Bacon Act or the Service Contract Act.
The minimum wage rate that generally must be paid to workers performing work on or in connection with contracts covered by Executive Order 14026 is $16.20 per hour for calendar year 2023, while the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts is $13.75 per hour.
The minimum wage rate that generally must be paid to workers performing work on or in connection with contracts covered by Executive Order 13658 is $12.15 per hour for calendar year 2023, while the required minimum cash wage that generally must be paid to tipped employees performing work on or in connection with covered contracts is $8.50 per hour.
Learn more about wage requirements for federal contractors or subcontractors.
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