President Barack Obama’s “Fair Pay and Safe Workplaces” Executive Order signed July 31, 2014, applies to new federal procurement contracts, will require those seeking government contracts to disclose their employment and labor law violations for the previous three years.
The Executive Order requires prospective federal contractors to report employment and labor law violations (both initially in the bid and award process and post award every six months) and mandates that contracting agencies consider employment and labor law violations as a disqualifying factor when awarding a federal contract. In addition, the Executive Order mandates employer disclosure requirements to workers regarding classification as an employee or independent contractor, exempt or non-exempt status under the FLSA, and related compensation information.
These requirements will apply to federal contracts and subcontracts , including those for goods, services, and construction, exceeding $500,000. Finally, for contracts and subcontracts that exceed $1 million, the Executive Order prohibits mandatory pre-dispute arbitration for disputes arising out of Title VII of the Civil Rights Act or for torts related to sexual assault or harassment.
Reference: President Obama Signs Executive Order on Federal Contractor Blacklisting (8/1/2014). SHRM.org
