What is contractor compliance, and why is it important for manufacturers?

The U.S. labor market is more unpredictable than ever. New technology, an unreliable workforce, and other unexpected challenges have made it even harder for manufacturers to find full-time workers with the right skill sets. It’s easy to see why many prefer contractors instead.

Contractors bring valuable skills and expertise that manufacturers may not have in-house. They help tackle specialized tasks, manage complex projects, and fast-track production—all while keeping labor costs down. Yet, managing contractors can be tricky due to the introduction of new laws and regulations.

What is contractor compliance?

Contractor compliance is the process of confirming that contractors and subcontractors consistently meet all relevant laws, regulations, and company policies. Temporary workers, independent contractors, and external service providers must follow all established safety rules, certifications, and contractual obligations to avoid any penalties for non-compliance. Doing this helps create a safer workplace, lowers risks, and protects the company from legal or financial trouble.

Why is contractor compliance important for manufacturers?

Given the heavy reliance on contractors in the manufacturing industry, non-compliance can lead to some serious problems.

Regulatory and legal compliance

Manufacturing is a highly regulated industry with numerous standards that contractors must follow, including:

• The International Traffic in Arms Regulations (ITAR) are for defense-related manufacturers​.
• The Export Administration Regulations (EAR) are for businesses that manufacture materials that have both commercial and potential military applications.
• The Occupational Health and Safety Administration (OSHA) and California Senate Bill 553 (SB 553) mandate workplace safety​ policies and procedures.
• The EU's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) establish specific data privacy laws and regulations​.
• The FDA Food Safety Modernization Act (FSMA) sets comprehensive guidelines for food production, processing, transportation, and storage.

Failure to comply with any of these regulations can lead to hefty fines, shutdowns, or legal action, and for defense-related manufacturers, loss of government contracts.

Workplace safety

Maintaining safety standards for everyone, including contractors, is key to preventing most workplace accidents and injuries. Contractors often work in high-risk environments with complicated machinery, hazardous materials, or complex processes. By establishing and following clear procedures that meet safety regulations, you can create a safer workplace for everyone who’s onsite.

Risk management

Contractors who fail to meet compliance standards can introduce a variety of risks. Unlike full-time employees, it’s harder to know exactly which contractors will show up each day or that their qualifications will be up to date. A standardized visitor check-in process—one that includes identity screening—can help identify high-risk individuals before they come onsite. This can prevent security threats before they even happen.

Why should you use a visitor management system for compliance management?

Using a visitor management system (VMS) helps manufacturers reduce risks, address regulatory requirements, and create a safer workplace for everyone. Here’s how:

1. Automates compliance tasks. A VMS takes care of tedious, routine compliance steps, like verifying identities, screening against blocklists and watchlists, and creating digital visitor logs.
2. Enhances workplace security. By integrating with your access control system, a VMS lets you customize building access for employees and visitors so that only authorized individuals enter restricted areas.
3. Simplifies contractor registration. Pre-registration emails make onboarding a breeze. Contractors can verify their identity, sign legal documents, and even watch safety videos—all before they arrive.
4. Keeps detailed audit trails: A VMS maintains digital logs of visitor and contractor activities, including entry times, durations, and accessed areas. These records are critical for audits, investigations, and compliance reporting.
5. Speeds up emergency response. During an urgent situation, these systems can provide real-time data on who’s onsite, helping safety teams respond quickly. It also lets you send alerts with evacuation routes and other key details.

Envoy Visitors for compliance management

A visitor management system should allow you to do more than just track and manage visitor access across all of your plants and facilities. Envoy Visitors does all of the above and helps check off all your organization’s specific compliance requirements along the way. Need audit-ready visitor logs? How about an emergency response plan? Or do you need to restrict access to certain areas? We’ve got you covered.

• Customizable sign-in flows. Tailor the sign-in process for different visitors—like contractors, vendors, or clients—so you gather the correct information every time. For example, contractors can submit safety certifications or sign NDAs, while other visitors might need to watch a safety video.
• Instant visitor screening. You may need to set and manage your own blocklist for former employees while also screening guests against another third-party watchlist. If someone on a restricted list tries to check in, Envoy Visitors discreetly alerts your staff.
• Digital visitor logs. Maintain accurate records of every visitor’s entry, exit, and purpose for visiting. These up-to-date logs ensure you’re always ready for audits and staying compliant with regulations.
• Emergency notifications. Many state laws, such as California’s SB 553, require businesses operating in the state to notify all onsite individuals during emergencies. With Envoy, you can send real-time alerts that include evacuation routes and critical updates. And you can even allow employees to confirm they’re safe via SMS, email, or mobile apps.
• Integrations with access control systems. Envoy integrates with systems like Kisi and Brivo Access, letting you customize access levels based on visitor type, roles, or departments. For example, an employee may need access to rooms with hazardous materials, while a contractor may only have access to common areas.

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Curious how a visitor management system can streamline your compliance management? Take a look at our guide, "The buyer's guide for workplace security software," and learn how to make your workplace safer, efficient, and compliant.