Who are Federal Contractors & What Obligations do They Follow?

When the employees or individuals are signed under a contract with any department or agency of the United States to do a specific job are regarded as a federal contractor. This job includes the sale of any product or services and supply of labor & materials. Read more to get a better understanding of this contractor.


Federal Contractor-what is it?
Individuals or employers who perform work under the contract of the United States are known as federal contractors. When a contractor is offering services under a contract where a federal agency is the source of funds and are not contracting parties. The contract can be regarded as a federally assisted contract.
They can sell products or services, supply labor & materials, hold government lading bills, serve as paying agents for the United States saving notes & bonds, and enter into a federally assisted contract directly. A federal contractor has to follow certain obligations. They cannot discriminate against workers based on color, race, sex, origin, disability, and religion. These contractors need to take proactive steps at the time of hiring people from a special community that has been traditionally discriminated against.

Features of a Federal Contractor
Traditionally, federal contractors have to assume some obligations under OFCCP. It is known as the Office of Federal Contract Compliance Programs. This obligation includes a prohibition from any discrimination. There are three laws under the OFCCP of the United States Department of Labor. These laws are applied to a federal contractor of the country.

  • Section 503

It is called section 503 of the Rehabilitation Act of 1973. It focuses on people with disabilities, prohibiting workers with federal contracts from any discrimination. It applies to companies that are working under federal contracts.

  • Executive Order 11246

Executive Order 11246 is applied to people with sex, race, color, sexual orientation, and national origin. A company that is totaling more than ten thousand dollars is subjected to this law.

  • VEVRAA

It is known as the Vietnam Era Veterans’ Readjustment Assistance Act of 1974. It focuses on the obligations for veterans. Here a federal contractor needs to take affirmative action to hire discriminated category of people. These three laws ensure that the workplace encourages work for the discriminated community.

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