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


Tags

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

Archive

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

EDIT - BlogTagCloud - Font style

description

  • 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.