Good News for Federal Contractors – President Trump Blocks Implementation of Obama “Blacklisting”

In 2014, President Obama signed the ironically entitled Fair Pay and Safe Workplaces Executive Rule. This Rule would have required large federal contractors, and their subs, to disclose violations of fourteen state and federal labor laws when bidding on federal contracts. The Rule also forbade the use of mandatory employment arbitration agreements by federal contractors with certain contracts. Last, the Rule required contractors to provide employees with wage statements containing certain information. All aspects of the Order, other than the wage statement provision went into effect January 1 of this year.

In a strong pro-business move, on March 27, 2017, President Trump signed a Resolution under the Congressional Review Act essentially revoking the Rule. The Resolution effectively nullified the Fair Pay and Safe Workplaces Rule and barred its application in the future. The Resolution also forbids federal agencies from creating similar rules.

Since the Rule has been nullified, Contractors may cease providing the wage statement information. Contractors should also review their recent, pending and planned contracts to remove clauses that had previously been required by the Rule, including FAR 52.522-57 (Representation Regarding Compliance with Labor Laws), FAR 52.522-58 (Subcontractor Responsibility Matters Regarding Compliance with Labor Laws), FA 52.522-59 (Compliance with Labor Laws), and FAR 52.522-61 (Arbitration of Contractor Employee Claims).

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