Companies that do business with the federal government are required to abide by affirmative action laws, which are enforced by the U.S. Department of Labor, Office of Federal Contract Compliance Programs (OFCCP). In recent years, there has also been an increase in OFCCP enforcement and audit activities and the issuance of conciliation agreements where contractors are found to be noncompliant.
Affirmative action obligations are imposed upon businesses providing goods or services to the federal government or functioning as subcontractors for companies providing goods or services directly to the federal government. In addition, construction contractors and subcontractors performing under federally assisted construction contracts are subject to certain affirmative action obligations. These obligations are set forth in:
Executive Order 11246
Section 503 of the Rehabilitation Act (Section 503)
the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA) as amended by the Jobs for Veterans Act (JVA).
These laws not only prohibit discrimination by covered employers but require them to make good-faith efforts to hire and advance minorities, women, disabled individuals, disabled veterans and certain other defined classes of protected veterans. For certain covered employers, the affirmative action laws...
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