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New Executive Order Shines Spotlight on Contractor Compliance With Labor Laws

Aug.04.2014

On July 31, 2014, the Obama Administration issued a new Executive Order that will lead to regulations requiring contractors bidding on procurement contracts in excess of $500,000 to disclose violations of various labor laws (including the FLSA, Service Contract Act, Davis-Bacon, ADA, ADEA, FMLA, NLRA, OSHA, Title VII of the Civil Rights Act and others, as well as "equivalent" state laws) occurring within the preceding 3-year period, make similar representations with regard to certain subcontractors, and provide updated information on a continuing basis after award. The "Fair Pay and Safe Workplaces Executive Order" will also expand the "Franken Amendment" limitation on contractors’ ability to enforce pre-dispute arbitration agreements as to certain types of employee claims and require federal agencies to designate a Labor Compliance Advisor tasked with facilitating compliance with labor laws, including "helping agency officials determine the appropriate response to address violations of the requirements of the labor laws" and "send[ing] information to agency suspending and debarring officials in accordance with agency procedures" (for additional discussion, see here).


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