On October 24, 2016, U.S. District Judge Marcia Crone granted a preliminary injunction to halt the implementation of the “Fair Pay and Safe Workplaces” Executive Order 13673 (EO 13673), implementing provisions of the Federal Acquisition Regulation (FAR) in the final rule, and Department of Labor (DOL) guidance that impose new reporting requirements on contractors regarding labor law violations.
President Obama signed EO 13673 in July 2014, and two years later the FAR Council and DOL issued a final rule and guidance on its implementation. These new requirements would impose an affirmative obligation on contractors to publicly disclose any alleged violations of the various labor laws, including the National Labor Relations Act (NLRA), Fair Labor Standards Act (FLSA), Davis Bacon Act (DBA), Service Contract Act (SCA), and others, regardless of whether the alleged violation has been adjudicated. Agencies could then use such public disclosures to make a responsibility determination based on those violations and alleged violations, potentially disqualifying offerors from contract award.
Bass, Berry & Sims’ Government Contracts & International Trade blog features news, commentary and insight on the demanding and ever-changing regulatory environment of contracting with federal, state and local governments, and international trade issues when conducting a global business.