“Blacklisting” Lawsuit

Kelley Drye & Warren LLP
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On October 7th, the Associated Builders and Contractors sued OSHA in the Eastern District of Texas over the Agency’s Fair Pay and Safe Workplaces rules.  These rules require federal contractors to disclose health and safety violations in their bids for government contracts.  The agencies soliciting these proposals from the contractors are expected to award contracts based on the health and safety compliance information provided by the contractors.  No one is particularly bothered by the prospect that egregious actors would lose out on federal contracts.  The issue is that OSHA is requiring contractors to disclose “violations” before the companies have had the opportunity to defend themselves against those charges.  Basing contracting decisions on mere allegations prior to their adjudication does not seem like informed decision-making, and it certainly does not sound like adherence to basic tenets of due process.  We’ll see if the Eastern District of Texas agrees.  

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