Don’t Risk Your Federal Contract

As a federal contractor or subcontractor, trying to ensure compliance with posting requirements can be a complex, time-consuming, and confusing task. Not only must federal contractors meet the same federal and state requirements that all private companies must adhere to, but federal contractors must also meet the same requirements as federal government agencies. Considering non-compliance could jeopardize the entire federal contract, meaning a potentially substantial loss in revenue, as well as potential fines and penalties, the pressure to get the posting requirements correct, is high.

 

General Posting Requirements for Federal Contractors

Every company with contracts with a federal government entity, regardless of its location, must post certain labor law posters to comply with federal law. These posters must be displayed at every building where employees work on a federal contract and in a conspicuous location where employees can see them readily, such as a breakroom or locker room. For large projects with workers in various locations, contractors will need to display multiple postings to ensure their visibility. For remote workers, the federal contractor should send the federal and state posters electronically.

Posters may also need to be displayed in different formats to ensure all workers are accommodated. If a significant number of employees do not speak English as their first language, the employer must display posters in additional languages. If one or more workers are sight-impaired, then the employer may be required to provide the poster in Braille.

 

Required Labor Law Posters for Federal Contractors

Federal contractors and subcontractors must post the following labor law posters:

• Federal Labor Standards Act (FLSA) and Federal Minimum Wage Law Poster:

  • This poster offers detailed information for federal contractors about the federal minimum wage. Federal law currently sets the minimum wage at $7.25 per hour. (Note that some states and localities may have a higher minimum wage.) The FLSA poster also explains that companies must pay an overtime pay of 1.5 times an employee’s regular hourly rate when an hourly employee works more than 40 hours in a week. Many states and some localities require an additional poster that sets forth their own minimum wage and that addresses other wage and hour issues, such as child labor laws.

One important change to this law will happen soon. Executive Order 14026, which President Biden signed on April 27, 2021, applies to federal contractors. The Executive Order will increase the minimum wage for workers performing work on federal contracts to $15 per hour beginning January 30, 2022.

• Equal Employment Opportunity (EEO) Law Poster:

  • This poster explains that federal contractors must protect their employees from discrimination and retaliation under the laws enforced by the Equal Employment Opportunity Commission (EEOC). The poster briefly reviews these laws, including the Civil Rights Act, the Americans With Disabilities Act, and the Age Discrimination in Employment Act. The personal characteristics protected against discrimination under federal law include race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), national origin, age, disability, and genetic information, including family medical history. The required poster also details how employees can file a complaint if they feel they have been discriminated against or retaliated against.

• Occupational Safety and Health Law Poster:

  • All federal contractors are required to display this poster, which is mandated by the Occupational Safety and Health Administration (OSHA). The poster informs employees that they are entitled to a safe and healthy work environment. It also notifies employers that they must keep detailed records of employee injuries. Finally, it warns employers that they may be subject to periodic, and unannounced, compliance inspections.

• Uniformed Services Employment and Reemployment Rights Act (USERRA) Poster:

  • This poster explains that federal contractors may be required to re-employ servicemembers after they finish a tour of duty and that they must continue providing healthcare under their medical plan while servicemembers are deployed. It also explains that the law prohibits employers from discriminating against both servicemembers and veterans.

• Family and Medical Leave Act (FMLA) Poster:

  • Where federal contractors employ more than 50 people, they must offer up to 12 weeks of unpaid leave to their employees, so long as those employees have been employed for at least 12 months and have worked at least 1,250 hours during the last 12 months. The FMLA poster explains that the requested leave can be for the birth and care of a newborn child of an employee, for the adoption or foster care placement of a child with an employee, to care for an employee’s immediate family member who has a serious health condition, or to take medical leave for a serious health condition that renders them unable to work.

• Employee Polygraph Protection Act Poster:

  • This labor law poster explains that companies cannot force employees and job applicants to take a lie detector test. It also says that employers may not discriminate or retaliate against employees who refuse to take a lie detector test.

• Notice of Employee Rights under the National Labor Relations Act (NLRA):

  • This poster explains that employees have the right to organize and bargain collectively with their employers and describes their right to engage in other protected concerted activities. The poster also offers examples of illegal conduct by employers and unions.

• Notice to Employees Working on Government Contracts (Service Contract Act/Walsh-Healey):

  • This notice affects all federal contractors whose employees are producing materials, supplies, articles, or equipment that total more than $10,000 under a government contract. Service contracts worth more than $2,500 are also covered.

• Notice to All Employees Working on Federal or Federally Financed Construction Projects (Davis-Bacon):

  • All construction contractors and subcontractors working on federally financed construction projects must post a copy of the specifications section of their contract that sets forth the applicable prevailing wage rates, as determined by the Secretary of Labor, at the job site.

• Worker Rights Under Executive Order 13658, Federal Minimum Wage for Contractors:

  • Federal contractors pay must pay workers performing work on, or in connection with, covered contracts at least $10.10 (as of January 1, 2015), plus an inflation-adjusted amount thereafter as set by the U.S. Secretary of Labor. The current hourly minimum is $10.95. However, President Joe Biden signed Executive Order 14026 on April 27, 2021, which if finalized, will apply to federal contractors. It proposes an increase to the minimum wage for workers performing work on “new” federal contracts to $15 per hour beginning on January 30, 2022.

• Worker Rights Under Executive Order 13706, Paid Sick Leave for Federal Contractors:

  • Federal contractors must provide one hour of paid sick leave for every hour worked, up to 56 hours of paid sick leave per year, for employees working on or in connection with their federal contracts. Employees may use paid sick leave for an illness, injury, or other health-related needs of their own or of their family members.

• Pay Transparency Nondiscrimination Provision:

  • This poster explains that federal contractors cannot fire or otherwise discriminate against an employee or job applicant because they disclosed, asked about, or otherwise discussed their pay or another person’s pay. The poster clarifies that employees who have access to confidential compensation information cannot disclose it unless they are under a legal duty to do so.

Bear in mind that there may be additional labor law posting requirements from state and local laws.

 

How Federal Contractors and Subcontractors Can Comply With Labor Law Poster Requirements

Poster Compliance Center offers a convenient bundle of the most common federal contractor labor law posters, plus state-specific labor law posters, to ensure you meet your legal requirements. Check out our website for more details, or get in touch if you have any questions.