Federal Contractors are individuals who enter into a contractual agreement with a department or agency of the Federal Government for the purchase, sale, or use of goods or services.  Given that this is a government contract, both the government department or agency and the individual contracting with them Certain subject to specific labor laws and obligation. These law can provide greater rights and benefits to federal contractors, in comparison to private sector employees and are enforced by the Office of Federal Contract Compliance Programs (OFCCP). 

In addition, these laws can sometimes apply to federal subcontractors. These are companies that often do work for a larger company, that is contracted by the government. If that was confusing, it’s okay. This page provides more information about some of the additional rights and remedies available to federal contractors: 

1. As an employee of a federal contrator, am I protected from discrimination in the workplace?
2. Is it true that federal contractors are required to take affirmative action to hire disabled individuals?
3. Is it true that federal contractors ae required to take affirmative action to hire veterans?
4. As an employee of a federal contractor, am I entitled to sick leave?
5. What is pay transparency and what are the related rules for federal contractors?
6. How does the enforcement of my rights differ as an employee of a federal contractor?

1. As an employee of a federal contractor, am I protected from discrimination in the workplace?

Yes, in most cases.

Executive Order 11246 prohibits federal contractors (who do over $10,000 in Government business per year) from discriminating in employment decisions based on race, color, religion, sex, sexual orientation, gender identity or national origin.

Section 503 of the Rehabilitation Act, prohibits federal contractors from discriminating in employment based on a person’s disabilities.

The affirmative action provisions of the Vietnam Era Veterans’ Readjustment Assistance Act prohibit federal contractors from discrimination in employment decisions based on protected veteran status.

The Office of Federal Contract Compliance Programs (OFFCP) ensure federal contractors comply with these provisions. See their Workplace Rights fact sheet for more information on these protections, and how to file a complaint.

2. Is it true that federal contractors are required to take affirmative action to hire disabled individuals?

Yes, Section 503 of the Rehabilitation Act, not only prohibits federal contractors from discriminating in employment decisions based on disability, but actually requires federal contractors and subcontractors with government contracts in excess of $10,000 to take affirmative action to recruit, employ, train, and promote qualified individuals with disabilities.

For more information on Section 503 of the Rehabilitation Act, see this fact sheet from the OFCCP.

3. Is it true that federal contractors are required to take affirmative action to hire veterans?

Yes, in regards to veterans with protected status. Veterans have protected status if they are disabled or have recently separated from the armed forces (this is defined as a three-year period beginning from the date of discharge or release from active duty). The affirmative action provisions of the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) require federal contractors to take affirmative action to recruit, employ, and promote these veterans.

For more information on VEVRAA, see this fact sheet from the OFCCP.

4. As an employee of a federal contractor, am I entitled to sick leave?

Yes! On September 30, 2016, the Department of Labor published a final rule to implement Executive Order 13706, Established Paid Sick Leave for Federal Contractors. Executive Order 13706 was signed on September 7, 2015, and requires parties that enter into contracts with the Federal Government to provide covered employees with up to 7 days of paid sick leave annually, including paid leave for family care.

5. What is pay transparency and what are the related rules for federal contractors?

In its most basic sense, pay transparency is the ability to know how much your coworkers are being paid. It can be a valuable tool in negotiating a fair salary and act as an important check on discrimination in the workplace.

In 2014, President Obama issued Executive Order 13665 promoting pay transparency in federal contracts. On September 11, 2015, the Department of Labor issued a Final Rule implementing that order; thus, the order took effect on January 11, 2016.

This order protects employees of federal contractors from discrimination based on compensation inquiries, discussions, or disclosures. The final rule incorporated the nondiscrimination provision into the EOC (Equal Opportunity Clause) governing federal contracts. However, if the worker who is disclosing pay discrepancies with other coworkers is someone who handles pay data as part of their essential job functions, i.e.: payroll manager, and if other coworkers do not have access to this information, this behavior is not protected.  Thus, a contractor can defend against a discrimination claim for a negative employment action with this “essential job functions” defense.

However, such an employee is protected from discrimination if they disclose pay information in response to a formal complaint, charge or investigation, or if disclosure is consistent with contractor’s legal duty to provide information. Additionally, an employee whose essential job functions includes handling undisclosed pay data and notices a pay discrepancy can disclose this to their manager or through the employer’s formal complaint process.

Additionally, federal contractors are required to notify their employees of their rights under this pay transparency rule.  The rule requires federal contractors to incorporate pay transparency nondiscrimination provision into employee handbooks or manuals, and the information must be posted in either on the employer’s website or in a place on the employer’s premises that is easily seen by employees. This is an additional posting requirement to posting the "EEO (equal employment opportunity) is the law" poster and its supplement.  All three should be posted in the workplace.  Furthermore, the EOC clause, which now includes the nondiscrimination provision, should be included in federal contractor contracts or purchase orders either by reference or in its entirety.

For more information on this rule see the OFFCP pay transparency fact sheet.

6. How does the enforcement of my rights differ as an employee of a federal contractor?

The Office of Federal Contract Compliance Programs (OFCCP) is the enforcement agency for labor rules affecting federal contractors. Thus, if you work for a federal contractor and think your rights have been violated you should file a complaint with the OFCCP. You can start on the Department of Labor’s OFCCP How to File a Complaint page.

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