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Four sub-areas of employment law should be factored into the government contracting business decision:
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:
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
41 CFR Section 60-1.20(d)
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