President Obama’s long-controversial Fair Pay and Safe Workplaces rule — set to take effect Oct. 25 — is being challenged in district court by the Associated Builders and Contractors (ABC), one of several contractors associations that oppose the rule as costly and burdensome.
In a suit filed Oct. 7 in the U.S. District Court for the Eastern District of Texas, the associated builders and its Southeast Texas Chapter argued that the Labor Department rule finalized in August and intended to protect low-wage workers from abuses such as wage theft is a “blacklisting” rule that forces contractors to report “alleged violations,” thus harming their prospects for winning government work.
“The Obama administration has exceeded its authority by forcing government contractors and prospective government contractors to publicly disclose mere accusations that they have violated labor and employment laws,” said Associated Builders and Contractors Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “ABC supports policies that provide value to taxpayers by ensuring that federal contractors compete on a level playing field, but this rule will require contractors to report alleged violations that have not been fully adjudicated and are being contested, which violates their first amendment and due process rights and is likely to harm fair and open competition in the federal marketplace.”
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