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Federal Contractors: Don't Get "Blacklisted"

Last month, new rules went into effect that will soon require federal contractors to disclose labor and employment law violations. 

On July 31, 2014, President Obama signed the Fair Pay and Safe Workplaces Executive Order. The Executive Order requires prospective federal contractors and subcontractors to disclose labor law violations when bidding on federal contracts.  According to the Department of Labor, the Order is designed to ensure that parties with which the Government contracts are responsible and provide basic workplace protections.

Federal contractors will be required to disclose violations of the following:

  • Fair Labor Standards Act (minimum wage/overtime violations)
  • E.O. 13658 of February 12, 2014 (minimum wage for contractors)
  • Migrant and Seasonal Agricultural Worker Protection Act
  • Family and Medical Leave Act (12 weeks unpaid leave)
  • National Labor Relations Act
  • Davis-Bacon Act
  • Service Contract Act
  • Occupational Safety and Health Act of 1970
  • OSHA-approved State Plans
  • Section 503 of the Rehabilitation Act of 1973
  • Vietnam Era Veterans' Readjustment Assistance Act
  • E.O. 11246 of September 24, 1965 (Equal Employment Opportunity)
  • Title VII of the Civil Rights Act of 1964
  • Americans with Disabilities Act of 1990
  • Age Discrimination in Employment Act of 1967

Importantly, contractors must publically disclose whether they have violations of covered laws within the reporting period. Starting October 25, 2016, the rule goes into effect for all prime contractors under consideration for contracts with a value of $50 million or more. By October 27, 2017, mandatory disclosure begins for all prime contractors and subcontractors under consideration for contracts of at least $500,000. Currently, the Department of Labor offers "Preassessment," in which a current or prospective contractor may voluntarily be reviewed for compliance, and mitigate future risks before submitting a new bid.

Thatcher Law Firm regularly advises clients regarding the labor and employment laws covered by the Executive Order. Federal contractors should proactively seek counsel to avoid ending up on the "Black list." Please contact the Thatcher Law Firm for guidance with any employment law issue.

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