Infrastructure Contracts Come With Compliance Hurdles

Construction contractors are scrambling to secure contracts funded by the $1 trillion Infrastructure Bill signed by President Biden on November 15, 2021.

Although lucrative, those contracts come with extensive obligations and stiff penalties for noncompliance. The U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) and the Wage & Hour Division (WHD) have jurisdiction over certain construction contractors.

Both agencies will soon be laser-focused on the construction industry, according to a report in JDSupra.

OFCCP Affirmative Action and non-discrimination obligations

OFCCP enforces affirmative action and non-discrimination obligations imposed on covered federal contractors and subcontractors, including construction contractors. Covered construction contractors are required to take affirmative action and refrain from discriminating against applicants and employees based on their sex, race, national origin, religion, sexual orientation, gender identity, disability, and protected veteran status. The threshold for coverage is quite low.

Executive Order 11246 (EO 11246) affirmative action and non-discrimination obligations are triggered by a minimum of $10,000 in total federal contracts.
Section 503 of the Rehabilitation Act’s (Section 503) prohibition on discrimination applies to construction contractors with at least one contract valued at $15,000. The requirement to implement a construction AAP is triggered once the contractor has at least 50 employees and one contractor for $50,000 or more.
The Vietnam Era Veterans Readjustment Assistance Act’s (VEVRAA) non-discrimination requirement applies to construction contractors with at least one contract with a value of $150,000 or more. AAPs are required once the contractor has at least 50 employees and a contract for at least $150,000.

Read the article, including tips on how to prepare for an audit and certification of compliance.

Source: JDSupra