Obama recently signed a second executive order that affects Federal Contractors and Subcontractor Employee Relations. The order protects employees from openly discussing their pay wage with employees without fear of reprisal. The federal government has an expectation that federal contractors pay their employees based on merit of the job(s) they perform; that is, the employee should be paid based on the daily job duties completed.  It would also require the addition of definitions for compensation, compensation information, and essential job functions. For example if a federal contractor employee performs three different job tasks within a work week and each of these job tasks require a higher level of skill than a regular laborer, then that employee is eligible by law to be paid the going rate for each skill performed. This requires the federal contractor to maintain accurate pay logs, complete job descriptions, and competitive pay rates aligned with all  functioning roles.

In addition to these federal requirements, the government lawfully expects that federal contractors maintain all federal labor laws or risk losing contracts they have secured and/or be fined by the federal, state, county, and city authorities. Here are a few of the laws government contractors could be audited on unannounced:

  • Sexual Harassment and Anti-Harassment Policy Administration and Training
  • Anti-Discrimination and Non-Retaliation Policy Administration and Training
  • I-9 examination through E-verify
  • Recruiting Outreach for Protected Veterans and Disabled Applicants
  • Female and Minority Recruiting Outreach in compliance with your Affirmative Action Plan (AAP)
  • Equal Pay Act Execution and Record Keeping
  • Equal Opportunity Employment for Applicants
  • Fair Labor Standard Act (FLSA)- Compensation rules
  • American Disability Act (ADA) Compliance- Providing the appropriate accommodations for disabled employees

It is in the best interest of the Federal Contractor and Subcontractor to outsource the Regulatory Compliance Requirement administration. Find an HR consultant firm to take on these responsibilities and give you a peace of mind. This leaves your company free to secure more federal contracts while maintaining an audit ready status at a moment’s notice with any regulatory authority. So ask yourself a serious business question: “Are you audit ready?”