Understanding Employment Laws for Federal Contractors Meet the

Understanding Employment Laws for Federal Contractors Meet the higher standards of working for the federal government Disclaimer: This Module Is Not Intended To Give Advice Regarding Business, Federal, Or Other Laws. This module Is For Informational Purposes Only With Knowledge Derived From, Study, Experience, Or Instruction.

Learning Objectives At the end of this module, you will be able to: – List the various laws that govern all federal contractors and subcontractors. – Understand the impacts that federal government contracts might have on your business. – Identify six recommended compliance steps. Disclaimer: This Module Is Not Intended To Give Advice Regarding Business, Federal, Or Other Laws. This module Is For Informational Purposes Only With Knowledge Derived From, Study, Experience, Or Instruction. FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 2

About FDIC Small Business Resource Effort The Federal Deposit Insurance Corporation (“FDIC”) recognizes the important contributions made by small, veteran, and minority and women-owned businesses to our economy. For that reason, we strive to provide small businesses with opportunities to contract with the FDIC. In furtherance of this goal, the FDIC has initiated the FDIC Small Business Resource Effort to assist the small vendors that provide products, services, and solutions to the FDIC. The objective of the Small Business Resource Effort is to provide information and the tools small vendors need to become better positioned to compete for contracts and subcontracts at the FDIC. To achieve this objective, the Small Business Resource Effort references outside resources critical for qualified vendors, leverages technology to provide education according to perceived needs, and offers connectivity through resourcing, accessibility, counseling, coaching, and guidance where applicable. This product was developed by the FDIC Office of Minority and Women Inclusion (OMWI). OMWI has responsibility for oversight of the Small Business Resource Effort. FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 3

Executive Summary Doing business with the government can be rewarding and profitable as long as you are aware of employment laws that you must adhere to. Several types of laws—which govern federal contractors and subcontractors—can significantly impact your work. A working knowledge of employment laws will help you avoid potential legal pitfalls. FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 4

Employment Law Basics The U.S. has numerous federal and state laws and regulations regarding employee rights and employer responsibilities. The laws cover four broad categories: – – – – Discrimination Fair pay Employee privacy Safety in the workplace Various government agencies enforce these laws including the Equal Employment Opportunity Commission (EEOC), the Department of Justice, and the Department of Labor. Small businesses are exempt from some of these federal laws (see the following page), but as a federal contractor or subcontractor, you must adhere to certain specific laws. FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 5

Key Federal Employment Laws Law Brief Description Exemption Criteria 1 Title VII of the Civil Rights Act of 1964 Prohibits discrimination in the hiring process (race, color, religion, sex, national origin) Businesses with fewer than 15 employees 2 American with Disabilities Act (ADA) Prohibits discrimination against a person with a qualified disability No exemptions 3 Age Discrimination in Employment Act (ADEA) Prohibits discrimination against workers aged 40 or older Businesses with fewer than 20 employees 4 Fair Labor Standards Act (FLSA) Governs the following: duration of work hours, breaks, minimum salary, and overtime Businesses with less than 500,000 in annual sales 5 Family and Medical Leave Act (FMLA) Employers must allow employees (who have worked there more than 12 months) up to 12 weeks off for certain medical conditions Businesses with fewer than 50 employees (State laws might be more stringent) FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 6

Unique Laws for Federal Contractors and Subcontractors These laws apply to all businesses: – Executive Order 11246 – Americans with Disabilities Act, Section 503 of the Rehabilitation Act – Vietnam Era Veterans' Readjustment Assistance Act of 1974 These laws apply only to construction contractors/subcontractors: – Davis-Beacon and Related Acts – McNamara-O'Hara Service Contract Act FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 7

Executive Order 11246 Executive Order 11246 is similar to Title VII in that it addresses discrimination, but is geared specifically toward federal contractors. The Order “prohibits federal contractors and federally assisted construction contractors and subcontractors, who do over 10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin.” The Order also requires “supply and service contractors—generally those with 50 or more employees and a contract of 50,000 or more—to develop and maintain a written affirmative action program (AAP).” FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 8

Administration of Executive Order 11246 Executive Order 11246 is administered by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP). The OFCCP’s mission is “to enforce, for the benefit of job seekers and wage earners, the contractual promise of affirmative action and equal employment opportunity required of those who do business with the Federal government.” The OFCCP proactively audits federal contractors and subcontractors to ensure compliance. The OFCCP also enforces Section 503 of the Rehabilitation Act of 1973, which prohibits discrimination against qualified individuals with disabilities; and the affirmative action provisions of the Vietnam Era Veterans’ Readjustment Assistance Act, which prohibits discrimination against qualified protected veterans. FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 9

A Comparison of Governing Bodies Regarding Discrimination Equal Employment Opportunity Commission Office of Federal Contract Compliance Programs Agency Acronym EEOC OFCCP Agency Status Independent Government Agency Office within the Department of Labor Employment Law Focus Discrimination Discrimination, Fair Pay Business Focus Private and public companies (covered by the laws) as well as the federal agency sector All federal contractors and subcontractors Functions: Responds to complaints? Yes Performs audits? No Education and training? Yes Yes Yes Yes Enforcement Authority Disbarment Lawsuits FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 10

What This Means for Small Business Owners If you are awarded a sizeable contract with a federal government agency, you must make your books and records available if audited by the OFCCP. For very small firms who are not currently subject to the federal laws, you may have to make changes including but not limited to the following: – – – – Create/upgrade employee policies, procedures, and practices. Create and administer an Affirmative Action Program. Create/update employee training programs. Become more knowledgeable about employment law and/or hire an attorney or Human Resources firm to help you become compliant. FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 11

6 Major Guidelines from the OFCCP FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 12

Self-Audits The OFCCP recommends conducting self-audits to ensure that you provide equal opportunities to applicants and employees. Audit suggestions: – Assess your hiring or promotion decisions: How have they impacted your numbers? – Review job families and geography within your business: Where are there women and minorities? Where are women and minorities missing? – Review your hiring practices: How have they affected women and minorities over longer time periods (quarters, years)? FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 13

Next Steps If you are a small business that is already doing business with a federal agency ( 10,000 or more per year) or plans to in the future: – Visit the Office of Federal Contract Compliance Program pages on the Dept. of Labor's website (www.dol.gov/ofccp/). – Review the guidelines. – List any actions you need to take to be fully compliant. – Perform a self-audit to see how your business is doing (use the how-to guide on the website). FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 14

Excellent Employment Law Resources for Small Businesses www.smallbusiness.findlaw.com www.HG.org www.HRHero.com www.DOL.gov/ofccp/ FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 15

Key Takeaways from This Module Before you pursue a federal contract, it is important to understand how the employment laws impact doing business with the federal government. Following the six steps outlined by the OFCCP will help your business stay compliant. Self-audits of your hiring and promotion practices will help you proactively find and address problem areas. FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 16

Sources and Citations Business.gov, Employment Laws for Federal Contractors DOL.gov, Office of Federal Contract Compliance's Guide for Small Businesses with Federal Contracts Ginny Schlosser, ProSidian Consulting, LLC, Employment Laws for Federal Contractors HRHero.com, Employment Laws and Regulations for Federal Contractors Smallbusiness.findlaw.com, Employment Law 101 Smallbusiness.findlaw.com, Employment and Anti-Discrimination Laws: An Introduction FDIC OMWI Education Module: Understanding Employment Laws for Federal Contractors 17