Federal contractors and subcontractors are subject to Office of Federal Contract Compliance Programs (OFCCP) requirements in addition to any applicable state pay transparency laws. OFCCP requirements are frequently misunderstood: many employers who are technically federal contractors don't know it, and many who do know it don't realise that their job postings must contain specific elements beyond the standard EEO statement. This checklist covers what your postings need and why.
Am I a federal contractor? The threshold question
OFCCP requirements apply to employers that hold federal contracts or subcontracts above certain dollar thresholds. If your company supplies goods or services to the federal government — directly or through a prime contractor — you may be a federal contractor without having a formal "government contract" in the way most people think of one. Common situations that create federal contractor status include: cloud computing services provided to federal agencies, staffing services for government contractors, healthcare services to federally funded programs (Medicare/Medicaid), and research funding from federal agencies.
If you're uncertain whether you're a federal contractor, review your customer list for federal agencies, check your parent company's contracts if applicable, and consult with legal counsel. The penalties for non-compliance as a federal contractor are significant — up to and including debarment from future federal contracting.
Required posting elements by contract threshold
All federal contracts and subcontracts ($1+)
Even the smallest federal contract creates EEO obligations. All job postings must include an equal employment opportunity tagline that explicitly covers: race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), national origin, disability, and protected veteran status. The specific language for federal contractors differs from the non-contractor EEO statement — it must include veteran status and disability, and it should reference the "affirmative action" commitment: "[Employer name] is an equal opportunity employer. We are committed to a diverse workplace and affirm equal opportunity for all qualified applicants in accordance with applicable law, including affirmative action for qualified individuals with disabilities and veterans."
Contracts over $10,000
At this threshold, Section 503 of the Rehabilitation Act and VEVRAA (Vietnam Era Veterans' Readjustment Assistance Act) requirements kick in. Postings should include:
- An invitation for qualified individuals with disabilities to self-identify: "Individuals with disabilities who need a reasonable accommodation to apply or compete for employment may request accommodation by contacting [HR contact]. We maintain an Affirmative Action Plan for Individuals with Disabilities."
- A veteran self-identification invitation: "We are a federal contractor and invite protected veterans to self-identify. Covered categories include disabled veterans, recently separated veterans (within 3 years of discharge), active duty wartime/campaign badge veterans, and Armed Forces service medal veterans."
Contracts over $150,000
The most comprehensive VEVRAA requirements apply at this threshold. The veteran invitation language must meet specific regulatory requirements, and the posting must reference the employer's Affirmative Action Plan if one is required. Legal counsel review of this specific language is advisable — the regulatory standard is precise.
Record-keeping requirements
Federal contractors must maintain records of job postings (including the actual text of each posting), applicant flow data, selection decisions, and compensation information for two years. This documentation must be available for OFCCP review if an audit is initiated. RoleComply's audit trail automatically maintains a timestamped record of every posting's compliance status — directly supporting OFCCP documentation requirements.
How OFCCP requirements interact with pay transparency laws
Federal contractors in pay transparency states face layered requirements: OFCCP requirements plus state pay transparency requirements. The good news is that these requirements are complementary — satisfying Colorado or Washington's requirements (the most demanding state laws) and adding the OFCCP-specific elements creates a compliant posting for both frameworks.
A fully compliant posting for a federal contractor in Colorado includes: salary range + benefits + bonus (Colorado), an EEO statement covering all protected classes including veteran status and disability (OFCCP), Section 503 disability self-identification invitation, VEVRAA veteran self-identification invitation, and an ADA reasonable accommodation statement. See our ADA language guide and EEOC compliance guide for the non-OFCCP elements.
Common OFCCP compliance failures in job postings
Using non-contractor EEO language. The contractor-specific EEO statement differs from the general employer statement. It must include affirmative action language and explicit reference to protected veteran status. Using standard EEO language that omits these elements is non-compliant for federal contractors.
Missing Section 503 invitation. Many federal contractors include the EEO statement but omit the Section 503 self-identification invitation. These are separate requirements — the EEO statement does not substitute for the self-ID invitation.
Omitting VEVRAA language on lower-threshold contracts. Some employers apply VEVRAA requirements only to large contracts, not realising the $10,000 threshold triggers the core requirements.
Failing to update language after contract threshold changes. As contract values grow, threshold-dependent requirements change. A subcontract that started at $8,000 and grew to $12,000 triggers Section 503 and VEVRAA obligations that weren't previously required.
