The Obama administration has finalized plans to bring more scrutiny to potential federal contractors’ histories of violating labor laws, releasing twin final regulations that will publish Thursday to implement a 2014 executive order.
A final rule from the Defense Department, General Services Administration and NASA, and final guidance from the Labor Department, will implement President Obama’s Fair Pay and Safe Workplaces order to boost transparency of contractors’ compliance with labor laws. It will require agencies’ contracting officers to give greater consideration to such violations.
The rule will go into effect Oct. 25 with its provisions phased in over the next two years. Labor estimated in 2014 the order would affect 24,000 businesses employing 28 million workers. In its final rule, the administration estimated contractors would spend $458 million complying with the new regulations in its first year, while the government would spend an additional $16 million.
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