Insights: Alerts President Trump Nails Coffin Shut on Federal Contractor “Blacklisting” Under Fair Pay and Safe Workplaces Rule
On March 27, 2017, President Trump signed a Congressional Review Act resolution, H.J. Res. 37, and issued his own Executive Order, which together nullified President Obama’s Fair Pay and Safe Workplaces Executive Order and its implementing regulations that would have required employers seeking federal contracts or subcontracts valued at more than $500,000 to disclose labor and employment law violations to contracting agencies. In addition to this controversial provision, labeled by some the “blacklisting” provision because it was feared that federal agencies would use reported violations to deny contracts to offending employers, the now-defunct rule also would have required contractors to give workers detailed paycheck information, including the number of hours they worked, their rates of pay, and their gross pay, and would have prohibited contractors from entering into mandatory pre-dispute arbitration agreements with employees covering Title VII claims and torts related to sexual assault or harassment.
After President Obama signed the Fair Pay and Safe Workplaces Executive Order on July 31, 2014, the Federal Acquisition Regulatory Council and the Department of Labor issued regulations implementing that Executive Order on August 24, 2016, with a planned effective date of October 25, 2016. Before the effective date, however, a federal judge in Texas blocked parts of the rule—including the “blacklisting” provision requiring self-disclosure of labor and employment law violations—from taking effect, finding that, among other things, the rule likely exceeded executive authority and was preempted by other federal labor laws.
President Trump’s action in signing legislation disapproving of the Fair Pay and Safe Workplaces Executive Order and issuing a separate Executive Order officially revoking President Obama’s original Executive Order went further than the Texas court ruling and nullified the Fair Pay and Safe Workplaces Executive Order and its regulations in their entirety.
Related People View All
While we are pleased to have you contact us by telephone, surface mail, electronic mail, or by facsimile transmission, contacting Kilpatrick Townsend & Stockton LLP or any of its attorneys does not create an attorney-client relationship. The formation of an attorney-client relationship requires consideration of multiple factors, including possible conflicts of interest. An attorney-client relationship is formed only when both you and the Firm have agreed to proceed with a defined engagement.
DO NOT CONVEY TO US ANY INFORMATION YOU REGARD AS CONFIDENTIAL UNTIL A FORMAL CLIENT-ATTORNEY RELATIONSHIP HAS BEEN ESTABLISHED.
If you do convey information, you recognize that we may review and disclose the information, and you agree that even if you regard the information as highly confidential and even if it is transmitted in a good faith effort to retain us, such a review does not preclude us from representing another client directly adverse to you, even in a matter where that information could be used against you.