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Government Contractors
National Summary
Executive Order 11246 sets requirements for federal contractors and federally assisted construction contractors and subcontractors who do more than $10,000 worth of business in 1 year with the federal government. Every contract covered by this order must include an equal opportunity clause, and contractors must take affirmative action to employ individuals with physical or mental disabilities and to eliminate discrimination on the basis of race, color, religion, sex, or national origin. In addition, federal contractors must pay prevailing wages. A contractor in violation of Executive Order 11246 may have its contracts canceled, terminated, or suspended, and the contractor may be ineligible for future government contracts. Contractors who do more than $50,000 to $100,000 worth of federal business annually must comply with additional requirements. Important note: The U.S. Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) published its long-awaited final rules, making significant changes to the regulations implementing Section 503 of the Rehabilitation Act of 1973 (Section 503) and the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA). The new rules became effective on March 24, 2014. The OFCCP has provided contractors with an extended compliance date for the Affirmative Action Program (AAP) requirements in Subpart C (the AAP provisions).
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