Skip forward into hiring notes
RosterAcorn

Contract job ad rules for the $10,000 exemption

Before you post a federal contract job ad, check whether a $10,000 exemption applies and which equal-opportunity sentence the ad must state.

Key takeaways for the equal-opportunity line in a federal-contract job ad and the $10,000 exemption

  • Use the correct sentence source: The Executive Order requires ads to state applicants receive consideration without regard to race, color, religion, sex, or national origin, according to National Archives.
  • Check the FAR clause for additional traits: The FAR clause requires ads to state applicants receive consideration without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin, according to Acquisition.GOV.
  • Verify the $10,000 threshold: Individual prime contracts or subcontracts of $10,000 or less are exempt from the Equal Opportunity clause, according to Acquisition.GOV.
  • Monitor the 12-month aggregate: The exemption fails if the aggregate value of all prime contracts or subcontracts awarded to a contractor in any 12-month period exceeds, or can reasonably be expected to exceed, $10,000, according to Acquisition.GOV.

The sentence the order requires in the advertisement

According to National Archives, the contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. This requirement applies to any solicitation or advertisement for employees that is placed by the contractor or on its behalf. The text specifies the exact characteristics to be listed: race, color, religion, sex, or national origin. It does not list other characteristics in this specific advertisement sentence.

The placement of this sentence is tied to the act of placing the advertisement. The source indicates that the statement must be included in the solicitation or advertisement itself. It is not a separate document but part of the job posting content. For recruiters, this means the text must be visible in the ad where potential applicants view the role. The requirement is tied to the contractor’s actions in placing the ad. If the ad is placed by a third party on behalf of the contractor, the requirement still applies to that advertisement.

Related checks sit in EO 11246: 8 contract checks for staffing firms.

The sentence the contract clause requires, which names more characteristics

According to Acquisition.GOV, the clause requires the statement: "all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin." This specific advertisement sentence is distinct from other equal opportunity statements and must be used verbatim in job ads associated with covered federal contracts. The list of protected characteristics in this clause includes sexual orientation and gender identity, which are explicitly named in the text provided by the source.

The same source also outlines the broader nondiscrimination obligation under the clause. According to Acquisition.GOV, the Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. This nondiscrimination provision mirrors the characteristics listed in the advertisement requirement, ensuring that the protected classes are consistent across both the hiring process and the public-facing job advertisements.

The scope of this requirement is limited to contractors and their solicitations or advertisements for employees placed by or on behalf of the Contractor. The clause specifically addresses the language used in job ads, ensuring that the protected characteristics are clearly stated to applicants. The text provided by Acquisition.GOV is the authoritative source for this specific advertisement sentence and the associated nondiscrimination obligations.

When the $10,000 exemption does and does not apply

The $10,000 figure in these pages is a contract-value threshold, not a wage, a posting fee, or a penalty amount. It determines when the equal opportunity clause attaches to a federal contract or subcontract.

Individual contracts at or below the threshold. Under the FAR page titled “22.807 Exemptions,” individual prime contracts or subcontracts of $10,000 or less are exempt from application of the Equal Opportunity clause, unless the aggregate value of all prime contracts or subcontracts awarded to a contractor in any 12-month period exceeds, or can reasonably be expected to exceed, $10,000, according to Acquisition.GOV. Contracts and subcontracts not exceeding $10,000, other than Government bills of lading, and other than contracts and subcontracts with depositories of Federal funds in any amount and with financial institutions which are issuing and paying agents for U.S. savings bonds and savings notes, are exempt from the requirements of the equal opportunity clause, according to Legal Information Institute.

The FAR clause page states that if, during any 12-month period (including the 12 months preceding the award of this contract), the Contractor has been or is awarded nonexempt Federal contracts and/or subcontracts that have an aggregate value in excess of $10,000, the Contractor shall comply with this clause, except for work performed outside the United States by employees who were not recruited within the United States, according to Acquisition.GOV. The CFR page adds that no agency, contractor, or subcontractor shall procure supplies or services in a manner so as to avoid applicability of the equal opportunity clause; provided, that where a contractor has contracts or subcontracts with the Government in any 12-month period which have an aggregate total value (or can reasonably be expected to have an aggregate total value) exceeding $10,000, the $10,000 or under exemption does not apply, and the contracts are subject to the order and the regulations issued pursuant thereto regardless of whether any single contract exceeds $10,000, according to Legal Information Institute.

Indefinite-quantity contracts. For indefinite-quantity contracts and subcontracts, the Equal Opportunity clause applies unless the contracting officer has reason to believe that the amount to be ordered in any year under the contract will not exceed $10,000, according to Acquisition.GOV.

Single-order exception. Even when the overall contract value is low, a single order can trigger the clause. The FAR exemptions page states that notwithstanding the above, the Equal Opportunity clause shall be applied to the contract whenever the amount of a single order exceeds $10,000, according to Acquisition.GOV. The CFR page mirrors this: notwithstanding the above, the equal opportunity clause shall be applied to such contract whenever the amount of a single order exceeds $10,000, according to Legal Information Institute.

Illustrative example of a 12-month total

Suppose a contractor has a prime contract of $10,000 and a subcontract of $10,000 in the same 12-month period. An individual prime contract or subcontract of $10,000 or less can be exempt, but the exemption fails when the aggregate of all prime contracts or subcontracts exceeds, or can reasonably be expected to exceed, $10,000 in any 12-month period, according to Acquisition.GOV. Taken together, the aggregate exceeds $10,000, so the exemption would not hold. These round figures are illustrative only.

A visa-preference line in an ad is a separate rule

A line in a job ad stating a preference for a specific visa status operates under a different legal framework than the equal-opportunity clause. The U.S. Equal Employment Opportunity Commission identifies job ads that say the employer prefers or requires applicants from a particular country or with a particular visa status, for example “H-1B preferred” or “H-1B only,” as potential instances of national origin discrimination ( U.S. Equal Employment Opportunity Commission). This definition is distinct from the executive order advertisement sentence and the contract clause sentence discussed in other sections. National origin discrimination involves treating workers (applicants or employees) unfavorably or favorably because they are from a particular country or part of the world, because of ethnicity or accent, or because they appear to be of a certain ethnic background (even if they are not) ( U.S. Equal Employment Opportunity Commission).

Recruiters must treat the visa-preference line as a separate compliance check. Do not merge the visa-status requirement with the equal-opportunity statement. The equal-opportunity line addresses the specific characteristics named in the executive order or the contract clause. This is not part of the $10,000 exemption logic or the 30-day forms step.

See Immigration employment rules: 6 topics for hiring.

Reference table of publisher rules for a contract job ad

The table below lists the advertisement sentences and exemption thresholds from the specific publisher pages.

PublisherRule or SentenceSource URL
National Archives "(2) The contractor will, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin." National Archives
Acquisition.GOV "(4) The Contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin." Acquisition.GOV
Acquisition.GOV "Individual prime contracts or subcontracts of $10,000 or less are exempt from application of the Equal Opportunity clause, unless the aggregate value of all prime contracts or subcontracts awarded to a contractor in any 12-month period exceeds, or can reasonably be expected to exceed, $10,000." Acquisition.GOV
Legal Information Institute "No agency, contractor, or subcontractor shall procure supplies or services in a manner so as to avoid applicability of the equal opportunity clause: Provided, that where a contractor has contracts or subcontracts with the Government in any 12-month period which have an aggregate total value (or can reasonably be expected to have an aggregate total value) exceeding $10,000, the $10,000 or under exemption does not apply, and the contracts are subject to the order and the regulations issued pursuant thereto regardless of whether any single contract exceeds $10,000." Legal Information Institute

Pair the ad text with Job description parts in 6 standard sections.

Today, check the contract value and the 12-month aggregate, then put the matching sentence in the ad.

FAQ on the equal-opportunity line in a contract job ad

What must the advertisement say under the order?

The Executive Order requires the contractor to state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. This specific sentence applies to all solicitations or advertisements for employees placed by or on behalf of the contractor. The source for this requirement is the National Archives, which documents the text of the order. Recruiters must ensure this exact phrasing appears in the ad when the order applies.

How does the contract-clause sentence differ?

The FAR sentence adds sexual orientation and gender identity, which the Executive Order advertisement sentence does not list. The Acquisition.GOV page for the FAR clause provides this expanded list of protected characteristics.

When does the $10,000 exemption fail because of a 12-month total?

If the aggregate total value of contracts or subcontracts in a 12-month period exceeds $10,000, the $10,000 or under exemption does not apply. This rule ensures that the order and its regulations apply regardless of whether any single contract exceeds the threshold. The Legal Information Institute and Acquisition.GOV both detail this aggregate value condition.

What 30-day step follows award?

Unless the contractor has filed within the 12 months preceding the date of contract award, the contractor must apply for the necessary forms within 30 days after contract award. This application goes to either the regional Office of Federal Contract Compliance Programs (OFCCP) or the local office of the Equal Employment Opportunity Commission. This step is required by the FAR clause and is separate from the advertisement language requirements.

Is an H-1B-only line part of that clause?

No, a visa-preference line in a job ad is a separate rule and not part of the equal opportunity clause. The equal opportunity clause addresses discrimination based on race, color, religion, sex, sexual orientation, gender identity, or national origin. A line stating that only H-1B visa holders are considered relates to national origin discrimination issues but is not the equal opportunity sentence required by the order or the FAR clause. Treat these as distinct compliance items when drafting your job advertisements.

Sources