Federal Contractors Must Have Ethics Program Under Rule
Contractors and subcontractors with federal contracts over $5 million must now have a written code of business ethics as a result of new federal requirements that went into effect Dec. 24, 2007.
Under the new rule, employers must provide a copy of their code of ethics and conduct to employees involved with the contract within 30 days of receiving the award. Additionally, federal contractors with awards over $5 million who do not qualify as small businesses must establish an employee business ethics and compliance-awareness program and develop internal controls to ensure compliance. The rule does not apply to commercial contracts or work performed outside the U.S.