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Is Your Federal Contracting Business Covered by OFCCP Affirmative Action Rules?
Monday, September 21, 2015

The myriad employment laws on the books at the federal, state, and local level can make what should be the simple act of doing business seem like negotiating a minefield.  Add a federal contract to the mix, and compliance gets a whole extra layer of complexity.  The Rehabilitation Act of 1973, the Vietnam Era Veterans' Readjustment Assistance Act, Executive Order 11246, the Service Contract Act, and the Davis-Bacon Act are just a few authorities that may apply. 

With respect to affirmative action rules, the Department of Labor Office of Federal Contract Compliance Programs ("OFCCP") has developed a new “Jurisdictional Thresholds” infographic that may help some federal contractors understand their obligations.  The infographic summarizes when OFCCP’s Executive Order 11246, Section 503 of the Rehabilitation Act ("Section 503"), and the Vietnam Era Veterans' Readjustment Assistance Act regulations apply to companies doing business with the federal government. 

The OFCCP's infographic includes a recent increase to Section 503’s coverage threshold from $10,000 to $15,000.  The increase resulted from an inflationary adjustment statute that authorizes the Federal Acquisition Regulatory Council to review and adjust “acquisition-related” threshold amounts in statutes that apply to federal procurement. 

The infographic is available for download on OFCCP’s Web site here.  Of course, the OFCCP's summary information is not legal advice.  Federal contractors should consult an attorney to determine precisely whether they are covered by particular rules, and if so, what the rules require specifically. 

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