Georgia Tech Procurement Assistance Center

President puts last nail in coffin to eliminate ‘blacklisting’ rule for federal contractors

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President Donald Trump on Monday signed a joint resolution shutting down an Obama administration-era rule that supporters said evened the playing field for law-abiding contractors, but which the current administration said amounted to “blacklisting” easy targets.

House Joint Resolution 37 stated that Congress “disapproves” the Fair Pay and Safe Workplaces rule  and “such rule shall have no force or effect.”

H.J. Res. 37 was part of a package of resolutions signed March 27 by President Trump, which “roll back job killing rules,” said White House Press Secretary Sean Spicer during a press briefing earlier in the day.

Keep reading this article at: http://federalnewsradio.com/industryassociations/2017/03/trump-signs-joint-resolution-to-roll-back-blacklisting-rule-for-federal-contractors/

What contractors should expect from the Trump administration

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Government contractors are in the dark about what President Donald Trump’s administration has in store, just like everyone else. But government contract lawyers from the law firm Crowell and Moring are making some speculations.

Robert Burton, partner at Crowell and Moring and former deputy administrator of the Office of Federal Procurement Policy, said the overarching goal of the administration seems to be a more efficient procurement system at much lower prices.

“I think that’s going to translate into increased opportunities for federal contractors, as well as some challenges,” Burton said in a Jan. 26 webinar.

The administration’s top priority, Burton said, seems to be reducing the number of regulatory and compliance burdens contractors function under, especially those imposed by the Obama administration. Burton said he expects the Fair Pay and Safe Workplaces Executive Order, among others, to be rescinded soon.

Keep reading this article at: http://federalnewsradio.com/acquisition-policy/2017/01/contractors-expect-trump-administration/ 

Defense bill stripped of language overturning contractor Executive Orders

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The election of Donald Trump had a surprise impact on this month’s House-Senate conference meetings on the fiscal 2017 National Defense Authorization Act.

One of the main sticking points in the bill was whether to include House language on contractor “religious freedom” introduced in May by Rep. Steve Russell, R-Okla., which critics feared would allow contractors to fire LGBT employees protected under a 2014 executive order from President Obama.

But senior Senate Armed Services Committee aides told reporters Tuesday that “since the election, other paths have opened up” for addressing that executive order and the “Fair Pay and Safe Workplaces” rule, which contractors have opposed. The bill’s language on religious freedom and fair pay has therefore been removed from the compromise bill.The [National Defense Authorization Act] was always an imperfect remedy,” the aides said the night before the long-awaited conference report and merged bill were set to be posted.

Keep reading this article at: http://www.govexec.com/contracting/2016/11/defense-bill-stripped-language-overturning-contractor-executive-orders/133512/

TX judge issues preliminary injunction blocking contentious Fair Pay and Safe Workplaces rule

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fpsw-rule-oct-2016The U.S. District Court for the Eastern District of Texas issued a preliminary injunction last week against the Fair Pay and Safe Workplaces rule, which opponents have dubbed the “blacklisting” rule.

The judge’s action blocks the Obama Administration’s regulation, which requires that contractors seeking federal work disclose recent labor law violations, from taking effect Oct. 25th, as originally scheduled.

In the decision, Judge Marcia A. Crone said the groups that initiated the suit earlier this month — including the Associated Builders and Contractors — had “properly demonstrated immediate and ongoing injury to their members if the rule is allowed to take effect,” according to Politico.

Read more here: http://www.constructiondive.com/news/tx-judge-issues-preliminary-injunction-blocking-contentious-fair-pay-and-sa/429005/ 

See Politico article here: http://www.politico.com/tipsheets/morning-shift/2016/10/texas-judge-blocks-contractor-rule-217046 

 

Contractors group files suit against ‘Fair Pay and Safe Workplaces’

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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.

DOLIn 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.”

Keep reading this article at: http://www.govexec.com/contracting/2016/10/contractors-group-files-suit-against-fair-pay-and-safe-workplaces/132243

5 steps to compliance with the fair pay and safe workplaces rules

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The much-anticipated so-called federal contractor “blacklisting” rules and guidance (“Final Rule” and “Guidance”) were published in the federal register on August 25, 2016. The Final Rule becomes effective on October 25, 2016 and imposes four new legal obligations on covered federal contractors, which will be phased in over the next year (starting as early as October 25, 2016).

It is important to also note that this is being phased in via Federal Acquisition Regulation (“FAR”) solicitation and contract provisions. This means that the Final Rule “becomes effective” by beginning to appear in new solicitations issued on or after October 25, 2016. This should not dampen a company’s concern and speed of progressing through the steps below and determining and pursuing compliance, but it is critical to understand and follow the specific path of obligation.

  • First, federal contractors will have to disclose “labor law decisions” both before and after contract award. The federal government will use these disclosures in making their “responsibility” determinations – the determination of whether the contractor is a responsible source to whom a contract may be awarded.
  • Second, contractors must give a wage statement to employees containing for each workweek the number of hours worked, the number of overtime hours, rate of pay, and additions to and from gross pay, and total gross pay.
  • Third, contractors must provide written notice to independent contractors informing them that they are independent contractors and not employees.
  • Fourth, contractors can no longer enter into agreements with employees or independent contractors that require arbitration of claims under Title VII of the Civil Rights Act (includes discrimination and retaliation claims based on race, color, religion, sex and national origin) or sexual harassment claims.

Federal contractors will need to become quick studies of the Final Rule and Guidance in order to begin developing procedures to ensure compliance as these requirements phase in over the next year.

Keep reading this article at: http://www.directemployers.org/2016/09/20/five-steps-compliance-fair-pay-safe-workplaces-final-rule/

Government releases final rule implementing ‘blacklisting’ law

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The final rule and guidance implementing the Fair Pay and Safe Workplaces Executive Order, signed by President Barack Obama in July 2014 and finally published on August 25, 2016, remain almost as burdensome and problematic as they were when originally proposed. They will impact many federal contractors and require immediate attention to ensure full compliance, which for some will be required as soon as October 2016.

President Barack Obama signs the "Fair Pay and Safe Workplace" executive order in the Eisenhower Executive Office Building South Court Auditorium, July 31, 2014. The President is joined on stage by Labor Secretary Thomas Perez as well as employers who support fair labor practices, workers who have seen firsthand the effects of workplace violations, and advocates who have worked to improve fair pay and safety standards. (Official White House Photo by Pete Souza)
President Barack Obama signs the “Fair Pay and Safe Workplace” executive order in the Eisenhower Executive Office Building South Court Auditorium, July 31, 2014. The President is joined on stage by Labor Secretary Thomas Perez as well as employers who support fair labor practices, workers who have seen firsthand the effects of workplace violations, and advocates who have worked to improve fair pay and safety standards. (Official White House Photo by Pete Souza)

Often referred to as the “blacklisting” law, the Executive Order requires prospective and existing contractors to disclose violations of 14 federal labor laws plus state equivalents, requires them to provide certain information each pay period to enable workers to verify the accuracy of their pay, and prohibits certain contractors from using pre-dispute arbitration agreements to address sexual assault and civil rights claims.

The rule from the Federal Acquisition Regulatory Council (U.S. Department of Defense, U.S. General Services Administration and NASA) and guidance from the U.S. Department of Labor (USDOL) are designed to assist agencies in implementing the Executive Order. They detail procedures for making the disclosures, assessing violations, developing conditions for further consideration of bids, and providing required notices to workers.

The final rule and guidance remain burdensome and problematic for several reasons.  First, they create a publicly available repository of contractor violations. They also require the contracting officer to determine whether a contractor is a “responsible source” based on violations that may not be final or are subject to appeal. Moreover, contracting officers wield the power to require bidders with records deemed less-than-satisfactory to commit to a labor compliance agreement in order for their bids to be considered. Although some minor changes were made to the proposals between the initial release and ultimate finalization, the overall effect remains the same.

Keep reading this article at: http://www.mondaq.com/unitedstates/x/523316/employee+rights+labour+relations/Government+Releases+Final+Rule+Implementing+Blacklisting+Law

Obama pushes contractors to be greener, more worker-friendly

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Dept. of LaborThe 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.

Keep reading this article at: http://www.govexec.com/contracting/2016/08/obama-pushes-contractors-be-greener-more-worker-friendly/131020/

Proposed contracting rule would penalize more than just the bad apples

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Last summer, President Obama signed an executive order requiring prospective federal contractors to disclose to the contracting agency “any administrative merits decision, arbitral award or decision, or civil judgment” related to wage and hour, safety and health, collective bargaining, family and medical leave, or civil rights laws. The order, titled “Fair Pay and Safe Workplaces,” directed the secretary of Labor to develop guidance to assist agencies in determining whether labor law violations were issued for “serious, repeated, willful, or pervasive” offenses.

Federal RegisterUnder the proposed guidance, published in the Federal Register on May 28, virtually any determination from any labor and employment enforcement agency will trigger a federal contractor’s reporting requirement.

Keep reading this article at: http://www.govexec.com/contracting/2015/06/proposed-contracting-rule-would-penalize-more-just-bad-apples/115783

Federal contractors to be burdened with additional disclosure requirements if Government has its say

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The U.S. Labor Department (DOL) and three federal agencies (the Department of Defense, the General Services Administration and NASA) recently issued two proposed documents relating to the implementation of Executive Order 13673, better known as the Fair Pay and Safe Workplaces Executive Order.

If enacted, these proposals would be problematic and burdensome for federal contractors; those who wish to have their voices heard on the matter have a July 27, 2015 deadline to submit comments on both documents.

The FARThe three contracting agencies issued a proposed rule amending the Federal Acquisition Regulations (FAR) intending to ensure federal agencies contract with only those contractors that they find to be “responsible sources,” i.e. those with a satisfactory record of integrity and business ethics. Under the proposed rule, affected contractors and subcontractors will be required to:

  1. disclose labor law violations within the past three years;
  2. notify workers performing under the contract how their pay is being calculated each pay period;
  3. notify independent contractors that they are being treated as such; and
  4. refrain from entering into certain pre-dispute arbitration agreements with employees or independent contractors.

The document also outlines how contracting officers, in consultation with “agency labor compliance advisors” – new positions created by the Order – will determine whether a contractor is a “responsible source.” If not, the proposal provides rules on how they can become one (e.g., requiring certain remedial measures, including a compliance agreement) or whether the contractor will instead be referred for suspension and debarment.

Keep reading this article at: http://www.mondaq.com/unitedstates/x/404154/

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