Did you know that federal contractors are legally required to display certain specific labor law postings – over and above the usual postings required for employers?
It’s true. Working under a federal contract means your business has additional posting obligations beyond mandatory federal, state and local postings. The following answers to common questions will help shed light on this critical responsibility.
Who Qualifies as a Federal Contractor?
A federal contract is defined as any agreement between a federal government agency or department and another entity for the purchase, sale, or use of goods or services. Many different types of businesses enter into federal contracts, including:
If you contract with the federal government to provide goods or services, you’re responsible for displaying additional postings beyond the usual labor law notices. Your specific obligations depend on the types of contracts you have and with what government agencies (and in some cases, the dollar amount of the contracts).
Examples of required postings for federal contractors include:
- E-Verify/Right to Work
- Minimum Wage for Federal Contractors
- Paid Sick Leave
- “EEO Is the Law” Supplement
- Pay Transparency Statement
- DOD Hotline
- NLRA (Required by EO 13496)
- Walsh-Healey Public/Service Contracts
- DHS Hotline
- Notice to Workers with Disabilities
- Davis-Bacon Act
- DOT Federal Highway Construction
These postings are issued by various government agencies. And these agencies can issue updates and revisions at any time – requiring covered businesses to replace their posters.
Federal subcontractors must meet the same posting requirements as federal contractors. If your company is working under a federal contract held by another business, you are likely a federal subcontractor.
What Are the Risks of Noncompliance?
A surprising number of employers with government contracts aren’t aware of this additional posting responsibility. This is troublesome because the penalties for noncompliance can be tougher than those for federal or state posters.
If you don’t comply with the applicable federal contractor posting requirements, you could face steep fines and even lose your government contract or funding. Contracts can be suspended or cancelled just because of posting noncompliance.
Federal contractor posters tend to change more frequently than other federal and state postings. These changes include the development of new posters and mandatory updates to current posters.
Where Should Federal Contractor Posters Be Displayed?
Many businesses assume they can display their posters at one location, such as the corporate headquarters. But notices must be posted at every location where employees work on a federal contract.
Posters should be hung in areas where employees can easily read them. Common locations include breakrooms, hallways and near time clocks. Larger buildings typically will require more than one set of posters so they are accessible to all workers.
What Is the Easiest Way to Maintain Compliance?
Because federal contractor postings are issued by multiple agencies, there is no central resource or website for all the necessary notices a business is required to display. If you’re a federal contractor – and are concerned about a potential gap in your posting coverage – rest assured an expert solution is available.
Poster Guard® Compliance Protection for Federal Contractors is an annual service that provides all the necessary federal contractor postings for immediate compliance. Plus, any time a mandatory change occurs, you automatically receive a free poster replacement at no additional charge.