The Department of Labor is sending a clear message to government contractors:  Fail to follow anti-discrimination mandates at your peril.  A recent blog post from the Kilpatrick law firm summarized the issue nicely.  Two companies, including a commercial item contractor, recently found this out the hard way.  The Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) found that subsidiaries of Boeing and Kimball International violated Executive Order 11246 which prohibits federal contractors from engaging in employment discrimination.  The companies paid a combined fine of $635,000, in addition to legal fees.  They must also put new procedures in place to ensure that they are compliant with the Executive Order and any other contractual requirements mandating non-discrimination in hiring.  The OFCCP’s action should be a particular wake-up call for Schedule contractors and other commercial item companies.  Enforcement of labor laws has traditionally focused more on defense contractors and companies that derive most of their business from government agencies.  The Biden Administration, however, has stepped up enforcement of a wide array of contract labor rules, including affirmative action compliance, across all market segments.  A review of OFCCP records conducted by Kilpatrick shows an increase in conciliation agreements that include financial penalties over the past year. What commercial contractors may once have thought to be “boiler plate” language is now moving to the front of compliance oversight.  Companies should review their contracts for all labor-related requirements and take steps to enhance or create specific compliance procedures.  Annual training for all covered employees is a best practice, as is including such training in the on-boarding of new hires.  While some commercial item companies may balk at this expense given the low margins on which many operate in the federal space, not only is compliance frequently less expensive than a fine, but it also keeps your company name out of the news taking away a tool that competitors could potentially use against you.