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Top 4 HR Compliance Issues- Part I

  

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As an HR management consulting firm, we are often asked by business owners and executives of government contractors:  What are the major HR compliance areas that I should be concerned with? 

This is obviously a loaded question as there are many areas of HR compliance that companies must focus on.  However, within a two part series of blog posts, we’ll address the TOP FOUR that I see many companies needing to place more of an emphasis on. 

Each of these areas is not only important to an organization’s success, but as a government contractor, most companies will specifically certify that they will comply with these regulations on each contract or sub-contract that they engage in.  The first two areas we’ll address include:

• Executive Order 11246 - Affirmative Action Plan
• Business Conduct and Ethics

Executive Order 11246 applies to government contractors or subcontractors with annual federal contracts totaling $50,000 or more and at least 50 employees.  

• A written Affirmative Action Plan is required under Executive Order 11246 and this plan will identify those areas, if any, in a contractor’s workforce that reflect under-utilization of women and minorities. 
• Based on an analysis of the workforce, utilization analyses are conducted and goals     (if applicable) are established to reduce the under-utilization. 
• The Office of Federal Contract Compliance Programs (OFCCP) monitors compliance and companies will often have their plans audited. 
• Penalties for non-compliance can include monetary fines and suspension. 
• The OFCCP also has the authority to debar a contractor from receiving federal contracts. 

Additional compliance information can be found at:  http://www.dol.gov/compliance/laws/comp-eeo.htm

Business Conduct and Ethics practices for government contractors are defined in the Federal Acquisition Regulations (FAR). 

• Recent FAR amendments require employers that have a federal contract of at least $5 million to adopt a code of business ethics and conduct and to educate employees on its provisions. 
• Within 30 days of entering into an affected government contract, organizations must adopt a written code of business ethics and conduct, provide a copy of the code to each employee engaged in the contract and promote compliance with the adopted code. 
• Within 90 days of entering into a government contract, organizations must establish an "ongoing business ethics and business conduct awareness program," in short, training. 
• They must also establish an internal control program aimed at the timely discovery of improper conduct and ensuring corrective measures are taken.  
• The complete text of the new FAR requirements can be found at:

http://acquisition.gov/far/current/html/Subpart%203_10.html

http://acquisition.gov/far/current/html/52_200_206.html

http://www.regulations.gov/fdmspublic/component/main?main=DocumentDetail&o=09000064807a4de3

Subscribe to this Blog and be notified as soon as Part II of this HR Compliance post goes live.  The next two topic areas we’ll discuss are:

• Harassment and Discrimination
• Fair Labor Standards Act – Exempt and Non-Exempt Classifications

Written by: Patrick Hill, Executive Vice President

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Foster Thomas is the Mid-Atlantic region’s leading HR Management Consulting organization.  With over 17 years of experience providing best-in-class HR-focused professional services, Foster Thomas creates custom scalable HR solutions for emerging and mid-sized organizations, government contractors and non-profits