Covered federal contractors must comply with the Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans Readjustment Assistance Act of 1974, while federally assisted contractors must comply with the Executive Order 11246 only. To comply with the Executive Order, contractors must demonstrate GOOD FAITH EFFORTS to meet their affirmative action goals for the employment of minorities and females in the workforce.
Who is a covered contractor under Executive Order 11246? A company that has:
- A Federal construction contract or subcontract of over $10,000;
- A federally assisted construction contract or subcontract of over $10,000;
- A construction contract or subcontract of over $10,000 with a Federal non-construction contractor or subcontractor, if the construction contract/subcontract is necessary in whole or in part to the performance of the Federal non-construction contract or subcontract;
- Multiple contracts or subcontracts that when totaled for a twelve month period, are greater than or equal to $10,000.
- Contractors or subcontractors are covered under Section 503 if the have a federal construction contract or subcontract in excess of $10,000.
- A contractor or subcontractor is covered under VEVRAA if they have a federal construction contract or subcontract of $25,000 or more.
Federally and federally assisted construction contractors and subcontractors who are subject to OFCCP requirements have contractual obligations to comply with the applicable OFCCP-administered laws governing equal employment opportunity and affirmative action. Additionally, covered contractors and subcontractors must comply with these regulations at all company work sites, not just the federal construction sites.