Employers in Texas engaged in work as federal contractors or subcontractors need to learn about new employment law requirements affecting federal contractors in 2022. If your business takes on federal contracts or is classified as a federal contractor, you might already be familiar with certain requirements from 2021. Yet there is more to be aware of in 2022. Beginning in 2022, there are new requirements for federal contractors, and Texas businesses need to know what to do in order to remain in compliance.
Our Frisco employment law attorneys can speak with you today about any compliance questions you have. In the meantime, the following information can help your company to learn more about requirements taking effect this year.
Who Counts as a Federal Contractor?
A federal contractor is any business or entity that agrees to a work contract with a U.S. government agency or department to perform a specific job, provide a particular good or service, or to supply specific materials. Many laws concerning federal contractors also apply to federal subcontractors, which include any individuals or businesses that enter into a relationship with the federal contractor to complete the contract the federal contractor has with the federal government.
AAP Reporting Through the Contractor Portal
One of the new requirements for federal contractors in 2022 concerns compliance with the Affirmative Action Program (AAP). The Office of Federal Contract Compliance Programs, or the OFCCP, created an online Contractor Portal. Certain federal contractors will be required to certify compliance with the AAP through the Contractor Portal. The requirement applies to a variety of federal contractors but not all federal contractors.
Who is required to certify AAP compliance through the Contractor Portal? If you are trying to determine whether you are required to use the Contractor Portal, here is what the U.S. Department of Labor (DOL) says:
“Supply and service contractors and subcontractors who meet certain jurisdiction thresholds are required to use the Contractor Portal to register and certify their AAP compliance. Specifically, contractors that hold a contract of $50,000 or more and employ 50 or more employees must develop and maintain AAPs . . . If a contractor has at least 50 employees and a contract of $150,000 or more, then it must also develop an AAP pursuant to the Vietnam Era Veterans’ Readjustment Assistance Act of 1974.”
Minimum Wage Requirements
In addition to the AAP portal, the federal government has also raised the minimum wage for federal contract workers. Beginning on January 30, 2022, federal contract workers must be paid a minimum wage of $15.00 per hour. According to the DOL, the minimum wage increase will apply to workers in construction, child care, health care, building workers, and service workers who have been employed through a federal contract.
Contact Our Frisco Employment Lawyers
If you have questions about federal contractor requirements in 2022, you should seek advice from an experienced employment law attorney in Frisco. Our firm routinely advises businesses in Texas, and we can speak with you today. Contact Simon Paschal PLLC for more information.