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OASVET Fact Sheet 97-5

Federal Contractor Program

Any contractor or subcontractor with a contract of $25,000 or more with the federal government must take affirmative action to hire and promote qualified targeted veterans which includes, special disabled veterans, veterans of the Vietnam era, any other veterans who served on active duty during a war or in a campaign or expedition for which a campaign badge has been authorized, and any veteran during the one-year period beginning on the date of such veteran's discharge or release from active duty.

Contractors and subcontractors with openings for jobs, other than executive or top management positions, positions which are to be filled from within the contractor's organization, and positions lasting three days or less, must list them with the nearest State Job Service (also known as State Employment Service) office. The requirement applies to vacancies at all locations of a business not otherwise exempt under the company's federal contract. Qualified targeted veterans receive priority for referral to federal contractor job openings listed at those offices. The priority for referral does not guarantee that referred veterans will be hired.

Federal contractors are not required to hire those referred, but must have affirmative action plans. Contractors with at least 50 employees and a contract of $50,000 or more must have a written affirmative action plan. They must be able to show they have followed the plans and that they have not discriminated against veterans or other covered groups. They must also show that they have actively recruited targeted veterans and disseminated all promotion information internally regarding promotion activities.

Companies must file an annual VETS-100 report, which shows the number of targeted veterans in their work force by job category, hiring location, and number of new hires, including targeted veterans hired during the reporting period and the maximum number and minimum number of employees of such contractor during the period covered by the report. Instructions, information and follow-up assistance is provided at VETS-100 Internet site at or employers may contact the VETS-100 Processing Center at (703) 461-2460 or e-mail at:

For information about how to list a job opening, contact the nearest State Job Service office listed in the telephone book.

For more information, see the Frequently Asked Questions on Federal Contractor Programs page.

For copies of Affirmative Action Obligations of Contractors and Subcontractors for Disabled Veterans and Veterans of the Vietnam Era, Rules and Regulations, contact:

Office of Federal Contract Compliance Programs
Employment Standards Administration
200 Constitution Ave., NW
U.S. Department of Labor
Washington, D.C. 20210

For more information about U.S. Department of Labor employment and training programs for veterans, contact the Veterans' Employment and Training Service office nearest you, listed in the phone book in the United States Government under the Labor Department or visit our site:

This is one of a series of fact sheets highlighting Department of Labor programs. It is intended as a general description only and does not carry the force of legal opinion.