News and Articles

Fair Pay and Safe Workplace Executive Order to Impose Greater Scrutiny on Federal Contractors

Yogi Patel - Thursday, September 08, 2016


On August 25, 2016, the Department of Labor and the Federal Acquisition Regulatory Council issued the final rule implementing the Fair Pay and Safe Workplaces Executive Order (the “Order”). Initially signed by President Obama in July 2014, the Order will bar contractors that violate federal and state workplace protection laws from receiving federal contracts. Under the Order, contractors and subcontractors must disclose labor law violations that occurred within the last three years, information which will then be used in considering contract awards. Once a contract is awarded, contractors and subcontractors are required to provide updated information every six months, and the contracting officer will use the new information to determine whether to continue the contract or not.

The final rule will become effective on October 25, 2016, with certain provisions gradually phasing in over the next few years. Generally speaking, under the Order, contractors and subcontractors that bid on contracts with a value of $500,000 or more will be required to disclose labor violations relating to workplace safety, discrimination, labor organizing rights, minimum wage, and overtime hours, among others. Contracting officers, with the guidance of a Labor Compliance Advisor, will assess contractor’s violations to determine whether they rise to the level of a lack of integrity or business ethics. Depending on the circumstances, violations may result in penalties, including rejection of the bid, termination of existing contracts, referral to another agency, such as the Department of Labor or the Equal Employment Opportunity Commission for investigation, or referral for suspension and disbarment.

The Order also includes the Paycheck Transparency Clause, which requires contractors to provide accurate wage, hour, and other information relevant to workers’ paychecks. Contractors must also provide non-employees with written notice of their status as independent contractors. Finally, the Order prohibits contractors and subcontractors with bids exceeding $1 million from requiring workers to sign agreements to arbitrate Title VII claims or any tort related claim related to or arising out of sexual harassment or sexual assault.

Implementation will be carried out on a phased-in schedule based upon the size of a contract. As of October 25, 2016, disclosure and assessment of labor law compliance will be required for prime contractors with solicitations of $50 million or more. On April 25, 2017, the disclosure and assessment requirements will apply to contractors with a contract value of $500,000 and up. And by October 25, 2017, the requirements will also apply to subcontractors with a contract value of approximately $500,000.

The prohibition on mandatory arbitration for Title VII and sexual assault related claims will become effective October 25, 2016, however, the paycheck transparency requirements won’t be implemented until January 1, 2017.

The three-year look-back period for labor violations will also be implemented on a phased-in basis. Until October 25, 2017, contractors and subcontractors will only need to report labor violations that occurred within the preceding year. On October 25, 2017, the look-back period increases to two years, and then three years starting October 25, 2018.

Prior to offering a bid for a federal contract, contractors and subcontractors are advised to seek legal counsel to evaluate their current disclosure obligations and prepare for the Contracting Officer’s evaluation. Likewise, employers with federal contracts exceeding $1 million should review with an attorney any current arbitration agreements to ensure they are not in violation of the Order.

Overall, proponents of the Fair Pay and Safe Workplaces Executive Order hope that by rewarding businesses and individuals that comply with labor laws, there will be a significant improvement in workplace standards for the approximately 28 million employees and thousands of government contractors that the Order will affect.

This article is not intended to be nor should be construed as legal advice. As with any issue, business and individuals should seek the advice of counsel for their own particular needs.


Recent Posts


Glatt v. Fox Searchlight Pictures, Inc. NYC Sick Leave Law Health Care Arbitration Agreements Interns Human Rights Law Unions Nanny Audit Salary History Inquiries marijuana usage Domain Name Credit Checks Sexual Harassment policy Intellectual Property Employment Offer/Agreement Fair Chance Act Fair Labor Standards Act (FLSA) Employee Manuals and Policies Fair Pay and Safe Workplace Executive Order Families First Coronavirus Response Act Employer Mandate Negotiating Business Law Westchester County implementing new leave laws workplace discrimination Freelance Isn't Free Divorce Mandatory Class Action Waivers sexual harassment training Prenup Immigration Status Illegal rentals entrepreneur Alter-Ego Doctrine Nobel Prize Unionization Interns as Employees Fair Play to Pay Act drug testing Paid Family Leave Overtime Exemptions NY payroll law New Address Technology Attracting Investment Fair Workweek Law Criminal Record graduate students Postnup Sexual Harassment and Discrimination In The Workplace NLRB Womens Rights Credit Independent Contractor NYC Human Right's Law's Fair Work Week Legislation commuter benefits #meToo National Labor Relations Act Wage Theft Protection Act Trademark Law Real Estate Law Economic Injury Disaster Loans U.S. Department of Labor Joint-Employer Relationship New York City Human Rights Law AirBnB Affordable Care Act Right to Unionize Public-Sector Union Fees Trade Secrets Act Tax-Deferred Savings NYC Salary History Law Employment Contracts Firm Announcements Web Domains Department of Labor Security Executive Negotiation Federal Acquisition Regulatory Council Apple vs. FBI ACA Selling Business Federal Small Business Assistance EEOC Filing Requirement Privacy NYC Sexual harrassment law Start-up Ventures Browning-Ferris Case federal Department of Labor Employee Salary Histories Workplace Requirements Overtime Rules Payroll Scams Newsletter LinkedIn Transgender protections stocks Emergency Economic Injury Grants Plastic Bag Ban Interview Series Out-of-State LLC Owners COVID-19 Wage and Hour Law Executive Severance Marijuana Testing Worker's Rights Employment Law Federal Overtime Law Facebook Privacy and Litigation Paycheck Protection Program Trademark licensing Pregnancy Glatt v. Fox Searchlight Pictures Fair Labor Standards Act Business Ban the Box Non-Qualified Stock Options Federal Contractors Hairstyle Discrimination Westchester Safe and Sick Time Laws Sexual Harassment employment discrimination lawsuits Lactation Law National Labor Relations Board Corporate Law Federal Joint Employer Rule Landlord-Tenant Law NQSO Trade Secrets Internet Law Credit History $15 Minimum Wage New York Earned Sick Time Act Minimum wage I-9 Verification Housing Law Household Employees


EDIT - blog-container - This controls the styles for the headings

EDIT - BlogTagCloud - Font style


  • EDIT  - post-body - Font style

EDIT - side-panel - This is the colour of the sidebar headings

Snap | BC Module - Blog - Blog Description

Snap | BC Module - Blog - Blog Title

EDIT - Snap | BC Module - Blog - Date - This is the date box style

EDIT - Snap | BC Module - Blog - Post Content - Font style

EDIT - Snap | BC Module - Blog - Post Title - Heading style

EDIT  - Snap | BC Module - Blog - Sidebar Content - Font style

EDIT - Snap | BC Module - Blog - Sidebar Title - Heading style

latest blog title snap text


Disclaimer: Nothing on this website is or should be construed as legal advice.
An attorney-client relationship does not exist with our firm unless a signed
retainer agreement is executed, and we do not offer legal advice through
this site or any of the content located on it. For legal advice for your
particular circumstances, please contact us directly.