Laws Related to Government Contracting
Following is a brief synopsis of the laws that an employer must follow based on the number of employees in the company. CCA can assist you with compliance, but with all legal issues, you should always refer to an attorney for legal advice.
If your company employs from 1 to 14 employees, you must comply with the following laws:
- Fair Labor Standards Act (FLSA) (1938)
- Immigration Reform & Control Act (IRCA) (1986)
- Employee Polygraph Protection Act (1988)
- Uniformed Services Employment & Re-employment Rights Act of 1994
- Equal Pay Act of 1963
- Consumer Credit Protection Act of 1968
- National Labor Relations Act (NLRA) 1935
- Labor-Management Relations Act (Taft-Hartley) 1947
- Employee Retirement Income Security Act (ERISA) 1974 (if Co. offers benefits)
- Uniform Guidelines of Employee Selection Procedures (1978)
- Federal Insurance Contribution's Act of 1935 (FICA) (Social Security)
If your company employs from 11 to 14 employees, you must comply with the following laws in addition to those listed above:
- Occupational Safety & Health Act (OSHA) (1970)
If your company employs from 15 to 19 employees, you must comply with the following laws in addition to those listed above:
- Civil Rights Act of 1964 Title VII, Civil Rights Act of 1991
- Title I, Americans with Disabilities Act of 1990, (ADA)
If your company employs from 20 to 49 employees, you must comply with the following laws in addition to those listed above:
- Age Discrimination in Employment Act (1967) (ADEA)
- Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)
If your company employs 50 or more employees, you must comply with the following laws in addition to those listed above:
- Family and Medical Leave Act of 1993 (FMLA)
- EEO-1 Report filed annually w/EEOC if Organization is a Federal Contractor
If your company employs 100 or more employees, you must comply with the following laws in addition to those listed above:
- Worker Adjustment & Retraining Notification Act of 1989 (WARN)
- EEO-1 Report filed annually w/EEOC if Organization is not a Federal Contractor
And finally, if your company is a federal contractor, you must comply with the following laws in addition to those listed above:
- Executive Orders 11246 (1965), 11375 (1967), 11478 (1969)
- Vocational Rehabilitation Act of 1973
- Drug Free Workplace Act of 1988
- Vietnam-Era Veterans Readjustment Act of 1974
- Davis Bacon Act of 1931
- Copeland Act of 1934
- Walsh-Healy Act of 1936.
Executive Order 11246 (1965)
Executive Order 11246 protects employees of covered Federal contractors and subcontractors from employment discrimination because of race, color, religion, sex and national origin. The Executive Order also requires that certain employers take affirmative action to ensure that all qualified applicants and employees receive equal employment opportunity. E.O. 11246 and its regulations are administered and enforced by the Employment Standards Administration's Office of Federal Contract Compliance Programs (OFCCP).
Executive Order 11246 can be accessed at the U.S. Department of Labor's web site. Click here.
Executive Order 11375 (1967)
Executive Order 11375 added gender to the list of prohibited forms of discrimination in the Federal Government.
Executive Order 11375 can be accessed at the U.S. Department of Labor's web site. Click here.
Executive Order 11478 (1969)
Executive Order 11478, issued in 1969 by President Nixon, required each department and agency of the Federal Government to establish and maintain an affirmative program of equal employment opportunity for all civilian employees and applicants. This Executive Order gave OPM the authority to guide and oversee EEO programs within Federal departments and agencies.
Executive Order 11478 can be accessed at the U.S. Equal Employment Opportunity Commission's web site. Click here.
Vocational Rehabilitation Act of 1973
The purpose of Title I of the Rehabilitation Act is to provide a comprehensive, coordinated, effective, efficient, and accountable program that is designed to assess, plan, develop, and provide vocational rehabilitation (VR) services for individuals with disabilities, consistent with their strengths, resources, priorities, concerns, abilities, capabilities, and informed choice, so that they may prepare for and engage in gainful employment.
The Vocational Rehabilitation Act of 1973 can be accessed at the U.S. Department of Labor's web site. Click here.
Drug Free Workplace Act of 1988
On November 18, 1988, Congress enacted the Drug-Free Workplace Act requiring Federal agency contractors and grantees to certify that they will provide a drug-free workplace as a pre-condition of receiving a contract or a grant from a Federal agency after March 18, 1989.
The Drug-Free Workplace Act of 1988 can be accessed at the U.S. Department of Labor's web site. Click here.
Vietnam-Era Veterans Readjustment Act of 1974
Vietnam era veterans, special disabled veterans, and veterans who served on active duty during a war or in a campaign or expedition for which a campaign badge has been authorized are protected in employment by the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended.
The law requires that employers with Federal contracts or subcontracts of $25,000 or more provide equal opportunity and affirmative action for Vietnam era veterans, special disabled veterans, and veterans who served on active duty during a war or in a campaign or expedition for which a campaign badge has been authorized.
The Vietnam-Era Veterans Readjustment Act of 1974 can be accessed at the U.S. Department of Labor's web site. Click here.
Davis-Bacon Act
The Davis-Bacon Act, as amended, requires that each contract over $2,000 to which the United States or the District of Columbia is a party for the construction, alteration, or repair of public buildings or public works shall contain a clause setting forth the minimum wages to be paid to various classes of laborers and mechanics employed under the contract. Under the provisions of the Act, contractors or their subcontractors are to pay workers employed directly upon the site of the work no less than the locally prevailing wages and fringe benefits paid on projects of a similar character. The Davis-Bacon Act directs the Secretary of Labor to determine such local prevailing wage rates.
In addition to the Davis-Bacon Act itself, Congress has added prevailing wage provisions to approximately 60 statutes which assist construction projects through grants, loans, loan guarantees, and insurance. These "related Acts" involve construction in such areas as transportation, housing, air and water pollution reduction, and health. If a construction project is funded or assisted under more than one Federal statute, the Davis-Bacon prevailing wage provisions may apply to the project if any of the applicable statutes requires payment of Davis-Bacon wage rates.
The geographic scope of the Davis-Bacon Act is limited, by its terms, to the 50 States and the District of Columbia. By the same token, the scope of each of the related Acts is determined by the terms of the particular statute under which the Federal assistance is provided. For example, Davis-Bacon prevailing wage provisions would apply to a construction contract located in Guam or the Virgin Islands funded under the Housing and Community Development Act of 1974, even though the Davis-Bacon Act itself does not apply to Federal construction contracts to be performed outside the 50 States and the District of Columbia.
The Davis-Bacon Act and Related Acts can be accessed at the U.S. Department of Labor's web site. Click here.
Copeland Act
The "Anti-Kickback" section of the Act precludes a contractor or subcontractor from in any way inducing an employee to give up any part of the compensation to which he or she is entitled under his or her contract of employment. The Act and implementing regulations require a contractor and subcontractor to submit a weekly statement of the wages paid to each employee performing on covered work during the preceding payroll period. The regulations also list payroll deductions that are permissible without the approval of the Secretary of Labor and those deductions that require consent of the Secretary of Labor.
The Copeland Act and Related Acts can be accessed at the U.S. Department of Labor's web site. Click here.
McNamara-O'Hara Service Contract Act
The Federal McNamara-O'Hara Service Contract Act (SCA) is a Federal labor standards statute that applies to every contract entered into by the United States or the District of Columbia, the principal purpose of which is to furnish services in the United States through the use of "service employees". The definition of "service employee" includes any employee engaged in performing services on a covered contract other than a bona fide executive, administrative, or professional employee who meets the exemption criteria.
Contractors and subcontractors performing on such Federal contracts must observe minimum wage and safety and health standards, and must maintain certain records, unless a specific exemption applies.
The McNamara-O'Hara Act can be accessed at the U.S. Department of Labor's web site. Click here.
Walsh-Healy Act
Covered contractors must pay employees on the contracts the federal minimum wage of $5.15 an hour. The employers may pay special lower rates to apprentices, students in vocational education programs, and disabled workers if they obtain special certificates from the Department of Labor. Employees must also be paid one and one-half times their regular rate of pay for all hours worked over 40 in a workweek.
The Act prohibits the employment of youths less than 16 years of age and convicts, except under certain conditions. Not included in convict labor are persons paroled, pardoned, or discharged from prison, or prisoners participating in a work-release program. It is also unlawful to carry out the contract work under working conditions that are unsanitary, hazardous, or dangerous to the health and safety of employees.
The Walsh-Healy Act can be accessed at the U.S. Department of Labor's web site. Click here.
Additional Acts and Laws
There are numerous additional laws, regulations, acts, executive orders and requirements that must be followed, depending on the contract and company structure. Let CCA's experts assist you in compliance.
