President's Executive Order Requires Prospective Federal Contractors To Disclose Violations Of Fourteen Federal Laws

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An Executive Order (E.O.) signed by President Obama on July 31 requires prospective federal contractors to disclose to agencies violations of 14 federal laws: the Fair Labor Standards Act; the Occupational Safety and Health Act; the Migrant and Seasonal Agricultural Worker Protection Act; the National Labor Relations Act; the Davis-Bacon Act; the Service Contract Act; E.O. 11246 on Equal Employment Opportunity; Section 503 of the Rehabilitation Act; the Vietnam Era Veterans’ Readjustment Assistance Act; the Family and Medical Leave Act; Title VII of the Civil Rights Act of 1964; the Americans with Disabilities Act; the Age Discrimination in Employment Act; E.O. 13658 (the February 2 E.O. on the minimum wage for contractors’ employees); and equivalent state laws as defined by the U.S. Department of Labor. The E.O., called The Fair Pay and Safe Workplaces Executive Order, applies to new federal contracts of more than $500,000 starting in 2016.  As stated in a White House Fact Sheet, prospective contractors will be required to disclose labor law violations (i.e., an administrative merits determination, arbitral award or decision or civil judgment) from the past three years before they can obtain a contract.  Only the most egregious violations will be taken into account.  The E.O. also requires federal contractors to provide employees with information concerning their hours worked, overtime hours, pay, and any additions to or deductions made from their pay.  The E.O. further prohibits employers with federal contracts of $1 million or more from requiring employees to agree to arbitrate claims arising out of Title VII of the Civil Rights Act or from torts “related to sexual assault or harassment.”


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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