President Obama has signed several Executive Orders recently each designed to achieve fair labor practices in federal contracting. The most recent Executive Order is the Fair Pay and Safe Workplaces Executive Order. Key features of the Order include:
1. Disclosure of Labor Law Violations
Federal agencies will require prospective contractors to disclose labor law violations from the past three years before they can get a contract. Violations that must be reported include wage and overtime rules, safety and health, collective bargaining, family and medical leave, and civil rights. Agencies will also require contractors to collect similar information from many of their subcontractors.
2. Improving Federal Contractor Performance
The Order sets up a process that will give agencies more guidance on how to consider labor law violations when awarding federal contracts, and later ensure the contractor is living up to the terms of its agreement. The goal is to promote efficient federal contracting and protect responsible contractors who invest in their workers’ safety and maintain a fair and equitable workplace.
3. Worker Paycheck Verification
The Executive Order also requires contractors to give their employees information concerning their hours worked, overtime hours, pay, and any additions to or deductions made from their pay, so workers can be sure they’re getting paid what they’re owed.
4. Ending Mandatory Arbitration Agreements of Civil rights Violations
The Order provides that certain federal contractors cannot to require employees to enter into predispute arbitration agreements for civil rights disputes or sexual assault or harassment claims.
The Executive Order directs the General Services Administration to develop a single website for contractors to meet their reporting requirements. The Fair Pay and Safe Workplaces Executive Order governs new federal procurement contracts valued at more than $500,000. The Order went into effect July 31, 2014. The official fact sheet on the new obligations can be found by clicking here.