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Government Contractors
National Summary
Executive Order 11246 sets requirements for federal contractors and federally assisted construction contractors and subcontractors that do more than $10,000 worth of business in 1 year with the federal government. Every contract covered by this order must include an equal opportunity clause, and contractors must take affirmative action and eliminate discrimination based on race, color, religion, sex, or national origin. Contracts with covered contracts of $15,000 or more have affirmative action and nondiscriminaton obligations with regard to individuals with disabilities. Contractors with covered contracts of $150,000 or more have affirmative action and nondiscriminaton obligations with regard to protected veterans. In addition, federal contractors must pay prevailing wages. A contractor in violation of Executive Order 11246, Section 503 of the Rehabilitation Act or Vietnam Era Veterans’ Readjustment Assistance Act of 1974 may have its contracts canceled, terminated, or suspended, and the contractor may be ineligible for future government contracts. Contractors that do more than $50,000 to $100,000 worth of federal business annually must comply with additional requirements.
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