Why there is a question “Do you currently work for government” Is contracting for government considered as working for goverment?
Yes it does
For federal contractors like Amazon, There are compliance laws regulating employment of federal employees, especially those who were federal contracting officials.
Does this apply to state contractors too?
I have said YES as I am working in a government organization for an internship and I applied to Microsoft for full time. Will that hamper my chances for getting an interview or job?
Because those companies have government contracts, they need to know this.