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Government Enjoined from Implementing Fair Pay and Safe Workplaces

Client Alert | 1 min read | 10.25.16

On October 24, a U.S. district court issued a preliminary injunction enjoining implementation of the Fair Pay and Safe Workplaces final rule, which had been scheduled to take effect today, October 25 (discussed here and here). The court held that the executive order, implementing regulations, and DOL guidance violated the First Amendment, contractors’ due process rights, and the Federal Arbitration Act and enjoined the government from (a) implementing any portion of the FAR rule or the DOL Guidance relating to the new reporting and disclosure requirements and (b) enforcing the new restriction on arbitration agreements, while permitting “paycheck transparency” requirements to proceed.

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Client Alert | 3 min read | 11.21.25

A Sign of What’s to Come? Court Dismisses FCA Retaliation Complaint Based on Alleged Discriminatory Use of Federal Funding

On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future....