Federal Contractors Beware – Part 3

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Federal contractors beware. More changes are coming your way, again. On July 31, 2014, President Obama issued an executive order titled the “Fair Pay and Safe Workplaces Executive Order”. First, the order requires companies to disclose to the Government any labor law violations arising within the the past three years before securing any contracts valued at more than $500,000. The labor law violations include violations of the FLSA, OSHA, the NLRA, Davis-Bacon, the Service Contract Act, FMLA, Title VII, the ADA, the ADEA, and more. For all but a small subset of federal contracts, contractors will also need to gather similar information from their subcontractors for any federal contract over $500,000.

The order also instructs companies holding federal contracts valued at $1 million or more not to require workers to sign arbitration agreements regarding alleged Title VII violations or alleged sexual assault or harassment torts, unless a valid arbitration contract already exists. The order further requires federal contractors to provide employees with information on their hours and wages, including overtime hours, pay, deductions, and other paycheck details. The General Services Administration will develop a website for contractors to utilize in reporting required information, both for this new order as well as for other reporting. Further details will follow.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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