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

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

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.