On March 27, 2017, President Trump took two coordinated actions to permanently eliminate the Fair Pay and Safe Workplaces (“FPSW”) regulations promulgated last summer and the underlying Executive Orders. Continue reading Fair Pay and Safe Workplaces Regulations and Executive Orders Are Rescinded
On October 24, 2016, the mandatory disclosure and arbitration provisions of the Fair Pay and Safe Workplaces (“FPSW”) Regulations and Guidance were preliminarily enjoined by the United States District Court for the Eastern District of Texas in Associated Builders and Contractors of Southeast Texas v. Rung, No. 1:16-cv-425-MAC. The paycheck transparency provisions remain, unaltered and in full force effective January 1, 2017. Continue reading Portions of Fair Pay and Safe Workplaces Regulations and Guidance Preliminarily Enjoined
Today, the FAR Council and the Department of Labor issued final regulations and final guidance implementing Executive Order 13673 – Fair Pay and Safe Workplaces. https://www.dol.gov/newsroom/releases/opa/opa20160824 The interlocking final regulations and final guidance, with an effective date of October 25, 2016, impose new requirements on federal contractors and subcontractors, including:
- Contractors, when bidding on new federal contracts valued at more than $500,000, will be required to disclose a three year look-back of all “labor law violations” (involving defined administrative merits determinations, civil judgments, and arbitral awards) arising under 14 different federal statutes and comparable state laws to the contracting officer. The contracting officer, with the assistance of a newly created Agency Labor Compliance Advisors, will review the labor law violations, determine whether the violations are serious, repeated, willful, or pervasive, and based on those determinations, decide whether the contractor is “responsible” enough to be awarded a federal contract.
- Subcontractors, with subcontracts worth more than $500,000, will be required to make similar three year look-back disclosures of labor law violations to the U.S. Department of Labor for that federal agency to make a determination as to whether the subcontractor’s history of labor law violations are serious, repeated, willful, or pervasive. The prime contractor is then required to making its own decision as to whether its subcontractors are “responsible” based on the Department of Labor’s determinations.
- Contractors and subcontractors with serious, repeated, willful, or pervasive labor law violations may be required to enter into labor compliance agreements – either before or after contract award – with designated federal agencies to mitigate or remediate histories of non-compliance as a condition to being deemed “responsible” to receive a federal contract or subcontract.
There are also new requirements concerning (1) Paycheck Transparency (what information must be listed on an employee’s or independent contractor’s paycheck); and (2) prohibitions on the use of arbitration to resolve employee claims unless the employee and contractor agree to use arbitration after the employee has a claim (effectively negating many pre-employment or company-wide arbitration agreements and plans).
The regulatory requirements outlined above have varied phase in periods, beginning October 25, 2016 through October 25, 2017. The final regulations and guidance will be published in tomorrow’s Federal Register.
We will be issuing a comprehensive Alert, with a more detailed analysis of this intricate and complicated regulatory scheme, soon.
On February 25, 2016, the U.S. Department of Labor published a Notice of Proposed Rulemaking implementing Executive Order 13706, Establishing Paid Sick Leave for Federal Contractors. The proposed rule (Proposed 29 C.F.R. Part 13) creates an employee right – for both hourly and salaried employees – to accrue and use paid sick leave while working on federal contracts. The proposed rule also imposes a complex regulatory scheme, with new federal contracting clauses created by the Department of Labor, on contractors to enforce the newly created employee rights. The salient points of the proposed rule are as follows: Continue reading Establishing Paid Sick Leave for Federal Contractors: New Proposed Regulations
On March 5, 2015, the U.S. Department of Labor (DOL) and the Office of Management and Budget (OMB) issued a joint memorandum to the heads of executive departments and agencies. The joint memorandum directed agencies to start hiring Labor Compliance Advisors (LCA’s) as the first step in a much larger process of implementing EO 13673, Fair Pay and Safe Workplaces.
EO 13673 requires federal contractors responding to solicitations valued at more than $500,000 to disclose to contracting officers all administrative merits determinations, arbitral awards, or civil judgments in labor or employment matters. Subcontractors are also required to make similar disclosures to prime contractors, who then turn the disclosed information over to the contracting officer. Agency contracting officers, with the assistance of LCA’s, are then required to use the disclosed labor and employment information to make responsibility determinations for the contractors and subcontractors. Continue reading First Steps In Implementation Of Fair Pay And Safe Workplaces Executive Order Are Underway