President Trump Revokes Fair Pay & Safe Workplaces Executive Order
Federal contractors can remove one onerous federal disclosure from their compliance obligations. President Trump recently issued an executive order rescinding the Fair Pay & Safe Workplaces Executive Order issued by the prior administration. Accordingly, the controversial “blacklisting” regulations are no longer in force.
Executive Order 13673 was designed to increase efficiency and cost savings in federal contracting by improving contractor compliance with labor laws. For procurement contracts for goods and services where the estimated value of the supplies acquired and services required exceeds $500,000, contractors were required to disclose violations of 14 basic workplace protections from the prior three years, including those addressing wage and hour, safety and health, collective bargaining, family and medical leave, and civil rights protections. The Executive Order also required contracting officers to consider the decisions (including any mitigating factors and remedial measures), as part of the contracting officer’s decision to award or extend a contract.
The Executive Order also prohibited certain arbitration agreements. It specifically prohibited contractors and subcontractors who entered into contracts for non-commercial items over $1 million from entering into any mandatory pre-dispute arbitration agreement with their employees or independent contractors on any matter arising under Title VII as well as any tort related to or arising out of sexual assault or harassment.
Finally, the paycheck transparency provision of the Executive Order mandated that all covered contractors inform workers in each paycheck of the number of hours worked, overtime calculations (for non-exempt employees), rates of pay, gross pay, additions or deductions from pay, and whether they have been classified as independent contractors.
Slow Death of Fair Pay & Safe Workplaces Executive Order
Legal challenges left many of the provisions in limbo for the past few years. In 2016, a U.S. District Court in Texas halted implementation of the employment law violation disclosure requirements and the restriction on arbitration agreements. However, the paycheck transparency provisions took effect on January 1, 2017.
Earlier this year, Congress passed a Congressional Review Act (CRA) Joint Resolution of Disapproval Fair Pay & Safe Workplaces Executive Order, which disapproved the regulations implementing the Fair Pay & Safe Workplaces Executive Order. Earlier this month, President Trump signed the resolution and issued his own executive order officially rescinding the federal contracting requirements
Based on the above legal developments, federal contractors may cease all implementation activities related to the labor law violation disclosure requirements. They also are no longer required to comply with the paycheck transparency provisions.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Jorge R. de Armas or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
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