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Failing to achieve compliance has more consequences than just fines

Federal Acquisition Regulations (FAR) and the Office of Federal Contract Compliance Programs (OFCCP) are frontrunners in enforcing compliance issues among existing government contractors. They carefully and regularly evaluate employers that contract with the government for any neglect toward compliance. Despite costly fines, the postponement of contracts, and the threat of contract termination, many contractors still fail to satisfy complex compliance issues. This is shown by a Government Accounting Office (GAO) report that found, over the last decade, an increase of 500% in the number of lawsuits filed against employers alleging violations of the Fair Labor Standards Act.

There has been a 500% increase in FLSA lawsuits filed against employers
There has been a 500% increase in FLSA lawsuits filed against employers

If a business is planning on entering the federal contracting marketplace, or is already a federal contractor, they must be extremely familiar with the following legislative categories that protect employees:

Common compliance issues -
Paying your employees

Very few employers are compliant with Wage & Hour laws The most frequently neglected compliance issues revolve around wage and hour laws. Wage and hour claims currently outpace all other types of workplace litigation and have increased by over 500% since 1990. As a result, U.S. employers paid $220 million in fines to the Department of Labor (DOL) in 2013.

ONLY 30% of US employers who are in compliance
with wage and hour laws.

Common compliance issues -
Failing to meet hiring standards

2013's EEOC violations resulted in nearly $375 million in employer fines

Equal Employment Opportunity (EEO) reports and written Affirmative Action (AA) plans must be filed for all federal government contracts of $50,000 or more, and/or for contractors with 50 or more employees. In addition, employers are dealing with the implementation of 2013 legislation that forces contractors to set hiring benchmarks for veterans and qualified people with disabilities. Private, state and local government, and federal workplaces paid out $525 million to victims of discrimination in FY 2015.

Common compliance issues -
The high cost of discrimination

Discrimination lawsuits that went to court frequently sided with employees

Even the most socially conscious and non-discriminatory employers have been exposed to discrimination litigation. It is a problem that should be accounted for in almost every hiring and firing situation. In 2014, there were a total of 88,778 charges filed against employers claiming multiple types of discrimination violations; of the ones that went to trial, the jury awarded on average, $650,000 to employees.

What takes precedence? State or Federal standards?

Many state laws provide employees with greater protections than federal laws. The most important precaution government contractors can take is to mirror their HR rules with the state or federal law that is most beneficial to the employee. Following this simple rule is the key to maintaining compliance.

Since there is a lack of information channels that compare federal and state laws, it becomes increasingly time-consuming to evaluate both state and federal laws. HR outsourcing can provide employers with another resource to enhance compliance capabilities.

The XcelHR Value

Due to the added pressures placed on federal contractors, it is increasingly important to ensure compliance isn’t the reason your company loses a bid. Don’t let compliance stop your federal procurement growth. XcelHR specializes in keeping employers compliant… so you can continue to grow your business. Take advantage of these XcelHR benefits:

  • All-in-One Compliance Solutions: We provide software and tools to increase the efficiency in which compliance matters are solved. It also provides accurate record-keeping for audits or personal needs.
  • Time & Attendance: With our wage and overtime classifications, government contractors can be assured their payroll satisfies DCAA audit requirements.
  • Administrative Relief: Our HR outsourcing solution takes on the paperwork burdens that employers do not have the time for.
  • Expert Advice: Our HR, benefits, accounting, and tax professionals know compliance issues, which takes these issues off the plate of employers. We are here to advise and protect you.