Recently Signed Executive Order Imposes New Restrictions on Federal Contractors

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On July 31, 2014, President Obama signed an executive order that requires federal contractors to disclose any labor violations committed by their companies during the previous three years. Per the executive order, a company would only need to check a box to certify that it had no violations during the previous three year period.

Additionally, the order requires that each federal agency designate a labor compliance adviser to track violations and to determine whether they are significant enough to warrant being excluded from contracts. The executive order will also forbid companies with contracts of $1 million or more from requiring employees to enter into arbitration agreements for disputes arising out of charges of sexual discrimination, harassment or assault.

The executive order is expected to be implemented on new contracts during 2016.

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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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