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The current state of HR problems for government contractors

Human resources issues can pop-up at any time and may place federal contractors in the unfortunate position of losing contract bids and may even cause the postponement or termination of existing contracts. These seemingly harsh penalties stem from the compliance obligations that the government places on every business that contracts with the government. Government contractors that want to avoid the consequences of HR non-compliance, must avoid these three highly probable HR violations:

Seeking HR advice is very common

Seeking HR advice is very common

Hiring and terminating issues

Affirmative Action, Equal Opportunity laws, Recordkeeping requirements, and Disabled Worker requirements are just a few of the many laws governing the hiring process. Government contractors must demonstrate that they are mindful of these rules throughout the hiring and terminating processes.

Quality HR departments can make hiring a new employee a quick and easy solution to an employer’s problems. Also, they provide insurance to employers that Federal Acquisition Regulations (FAR) and Department of Labor (DOL) regulations will be considered throughout the hiring process.

Wage requirements are always changing

Wage and hour laws

In 2014, an executive order was passed which raised the minimum wage of federal contractors to $10.10 an hour. In addition to the wage increase, government contractors MUST pay, at least 1.5 times the hourly rate of any overtime worker. Companies that neglect the constantly evolving wage and hour laws are exposing themselves to increased litigation that often results in fines.

Discrimination and harassment violations

In 2013, there was a total of 93,727 total charges filed against employers for discrimination violations. Discrimination and harassment in the workplace is a serious subject and must be handled carefully. Qualified HR programs are available to prevent employers from unnecessary lawsuits, and to improve employer and employee understanding of discrimination.

2013's total HR charges against employers

The XcelHR Value


Government contractors face significant challenges when it comes to bidding on contracts. Preparing a winning bid and complying with complex regulations represent the initial steps that should be taken to make sure your company has the possibility of winning a contract. However, most small business owners can’t accomplish it all by them self. HR outsourcing provides employers with a reliable and effective alternative that helps cope with the day-to-day intricacies of managing human capital.

Due to the strict standards that federal and state contractors are held to, employers in this arena must ensure their employee management practices are properly and effectively carried out. HR outsourcing is a great way for smaller federal contractors, who may not have dedicated HR staff, to efficiently manage their time. Let XcelHR manage your HR department… so you can continue to grow your business. Take advantage of these XcelHR benefits:

  • Managing Human Capital: Our software solutions eases the on-boarding process and relieves employers from time-consuming administrative paperwork
  • Employer Protection: Our record-keeping and comprehensive knowledge of the HR environment minimizes the potential of HR related fines and violations.
  • Compliance: Don’t lose out on government contracts because you failed to remain compliant. Our HR department can ensure that you are current with all of the changing HR requirements.
  • Expert Advice: The HR specialists at XcelHR provide insightful advice that reduces the possibility of employee lawsuits.