Nondiscrimination provision in contracts

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    (a)    (1)    The Commission may not enter into a contract unless the contract contains a provision obliging the contractor:

            (i)    not to discriminate in any manner against an employee or an applicant for employment on the basis of sex, race, creed, color, age, mental or physical disability, sexual orientation, religion, marital status, gender identity, or national origin; and

            (ii)    to include a similar nondiscrimination provision in all subcontracts.

        (2)    (i)    If the nondiscrimination provision is omitted from a contract or subcontract, the Commission shall provide the contractor a reasonable opportunity to cure the defect, subject to this section.

            (ii)    If the contractor fails to cure the defect:

                1.    the Commission may declare the contract to be void; and

                2.    the contractor is entitled to the reasonable value of work performed and materials provided by the contractor.

            (iii)    If the contractor cures the defect, the contract remains in force according to its revised terms.

    (b)    (1)    In accordance with this section, the Commission may compel a contractor to continue to perform under a contract if:

            (i)    the contractor willfully fails to comply with the requirements of a nondiscrimination provision; and

            (ii)    the contract is partially executory.

        (2)    If the Commission compels performance under this subsection, the Commission:

            (i)    is liable for no more than the reasonable value of work performed and materials provided by the contractor after the date on which the breach of contract was or should have been discovered; and

            (ii)    shall deduct any money that has been paid under the contract from the money that comes due under item (i) of this paragraph.

    (c)    (1)    If a subcontractor willfully fails to comply with the requirements of a nondiscrimination provision, the contractor may declare the subcontract to be void.

        (2)    If a contractor declares a subcontract to be void under this subsection, the contractor is liable for no more than the reasonable value of work performed or materials provided by the subcontractor.


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