Employment Law Checklist

Apr 1, 2010
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0410cover.gifFour sub-areas of employment law should be factored into the government contracting business decision:

  • Prevailing wage laws for service workers and construction workers, as well as overtime obligations on public contracts.
  • Affirmative action obligations for supply and service contractors, as well as construction contractors receiving federal financial assistance.
  • Labor law issues.
  • Immigration and E-Verify issues. If the amount of the award is going to be more than $5 million, code-of-conduct obligations also apply.

There is no set level where you can figure that it pays to be a contractor if you earn this amount. But this chart may help executives understand at what point new layers of bureaucracy apply:


Dollar Threshold


Construction contractors pay prevailing wages


40 U.S.C. 3142

Service workers paid prevailing wages



Participate in E-Verify, if a service subcontractor


48 CFR 52-222.54

Ensure nondiscrimination and engage in outreach for qualified women and minorities; comply with burdensome recordkeeping requirements and applicant tracking


Executive Order 11246, OFCCP’s regulations at 41 CFR Part 60-1

Prepare written affirmative action plans for women, minorities and individuals with disabilities


41 CFR Parts 60-2 and 60-741 (assumes company has at least 50 employees)

Prepare written affirmative action plan for veterans, file Vets-100 forms; participate in E-Verify as a direct contractor; post notice advising employees regarding National Labor Relations Act rights


41 CFR Part 60-300 and 41 CFR Part 61-300; 48 CFR 52-222.54 (labor law notice text not yet in final regulatory form)

Pre-award Office of Federal Contract Compliance Programs compliance review

>$10 million

41 CFR Section 60-1.20(d)

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