Federal Contract Labor Laws
Two categories of labor laws apply specifically to federal contractors: laws governing wages and work hours, and laws providing for equal employment opportunity.
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Wage Standards
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Three laws govern the wages paid by federal contractors to their employees. The Davis-Bacon Act applies to federal construction contracts. It requires that employees be paid at least the locally prevailing wages and fringe benefits. The McNamara-O'Hara Service Contract Act requires the payment of prevailing wages to service contract employees. The Walsh-Healey Public Contracts Act specifies the wage standards for the employees of government suppliers.
Work Hours and Employment Protection
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The Contract Work Hours and Safety Standards Act applies to prime contracts exceeding $100,000. The law requires the payment of overtime for hours in excess of 40 in a workweek. The Copeland Anti-Kickback Act protects employees from being forced to give back to their employer any of the wages that they receive under a federal contract.
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Equal Employment Opportunity and Affirmative Action
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Executive Order 11246 prohibits federal contractors from employment discrimination on the basis of race, color, religion, sex or national origin. The order requires federal contractors to take affirmative action to provide equal employment opportunity to all. Section 503 of the Rehabilitation Act of 1973 requires federal contractors to take affirmative action to hire qualified persons with disabilities.
Employment Opportunity for Veterans
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The hiring of veterans by federal contractors is addressed by the Vietnam Era Veterans' Readjustment Assistance Act of 1974 and the Jobs for Veterans Act. Federal contractors are required to take affirmative action to hire Vietnam-era veterans, disabled veterans and other veterans who served on active duty during a war. Federal contractors are also required to report on the number of eligible veterans that they have hired.
Executive Orders Issued by President Obama
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President Obama has issued four executive orders that address federal contract labor and employment issues. One of these permits union-only labor agreements for large federal contracts. Another order requires federal contractors to post a notice about their employees' rights under federal contract labor laws. Another order requires a new contractor to offer jobs to qualified employees of the previous contractor. The fourth order bars a federal contractor from claiming expenses incurred for discussing or persuading employees about their labor rights.
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