Once your business is a contract holder with a government agency, compliance issues come into play. As the SBA points out on its website in describing contract responsibilities, “Government procurement has historically been used as a vehicle for advancing various national, social, and economic objectives.”
This basically means that, along with all the explicit contractual terms you’ll need to meet in fulfilling your contract with the federal government, you’ll also need to pay careful attention to existing federal laws regarding labor standards like the Occupational Safety and Health Act (OSHA), Equal Employment Opportunity Commission (EEOC) requirements, and other national socio-economic objectives.
Larger businesses will typically have specialists on staff who know the rules and help companies abide by them. If you have any questions about your legal responsibilities under any government contract, you’d be well served to consult with a lawyer or other professional who specializes in this area.
But without a doubt, your business will need to comply with all existing U.S. labor laws. The Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) publishes a helpful Guide for Small Businesses with Federal Contracts on its website. Obviously, these laws, including workplace safety, maximum hours and minimum wages, equal employment opportunities, and other non-discriminatory actions, should guide your employment practices whether your business holds a government contract or not.