NRCA issues a statement about the Department of Labor's final regulation to implement President Obama's "Fair Pay and Safe Workplaces" Executive Order
Aug. 31, 2016
On Aug. 25, the Department of Labor (DOL) issued a final regulation to implement President Obama's "Fair Pay and Safe
Workplaces" Executive Order, which contains new requirements for contractors bidding on federal contracts. The
regulation will begin to take effect Oct. 25, 2016, and be phased in to full implementation by Oct. 25, 2017.
NRCA strongly opposed this regulation when it was proposed by DOL in 2015 and submitted detailed comments outlining
NRCA members' concerns with the regulation. The primary concerns are the regulation will increase costs and provide new
risks for employers involved in federal contracting while doing little if anything to make workplaces safer or increase
worker compensation. In addition, NRCA believes the new requirements go beyond the statutory authority granted the
executive branch by Congress. NRCA's comments urged DOL to withdraw the regulation. Click here to view the comments.
The final rule, sometimes referred to as the "blacklisting" regulation, will impose new obligations on most government
contractors. Companies bidding on qualifying contracts will have to disclose any violations of 14 federal labor laws
(and some state law equivalents) that occurred within the past three years, including violations of safety and health
rules, collective bargaining, family and medical leave rules, and civil rights protections. New federal compliance
officers will determine whether such violations will disqualify the contractor from receiving the contract. Contractors
and subcontractors will be required to disclose such violations every six months.
The Fair Labor Standards Act
The Occupational Safety and Health Act of 1970 (including OSHA-approved state plans equivalent to state laws)
The Migrant and Seasonal Agricultural Worker Protection Act
The National Labor Relations Act
40 U.S.C. chapter 31, subchapter IV, also known as the Davis-Bacon Act
41 U.S.C. chapter 67, also known as the Service Contract Act
Executive Order 11246 of September 24, 1965 (Equal Employment Opportunity)
Section 503 of the Rehabilitation Act of 1973
The Vietnam Era Veterans' Readjustment Assistance Act of 1972 and the Vietnam Era Veterans' Readjustment
Assistance Act of 1974
The Family and Medical Leave Act
Title VII of the Civil Rights Act of 1964
The Americans with Disabilities Act of 1990
The Age Discrimination in Employment Act of 1967
Executive Order 13658 of February 12, 2014 (Establishing a Minimum Wage for Contractors)
Although the order also covers equivalent state laws, with the exception of OSHA-approved state plans, equivalent
state laws will not be covered in the current guidance and rule; a separate rulemaking will be needed to implement
Effective dates for the regulation are listed below:
Sept. 12, 2016: Voluntary preassessment begins for interested contractors.
Oct. 25, 2016: The rule takes effect. Mandatory disclosure of labor compliance history begins for all prime
contractors under consideration for contracts with a total contract value greater than or equal to $50 million.
Companies with federal contracts of $1 million or more are prohibited from requiring their workers to enter into
pre-dispute arbitration agreements for disputes arising out of Title VII of the Civil Rights Act or from torts
related to sexual assault or harassment except where valid contracts already exist and remain unmodified.
Jan. 1, 2017: The paycheck transparency clause takes effect, requiring contractors to provide wage statements and
notice of any independent contractor relationship to their covered workers.
April 25, 2017: The total contract value above which prime contractors must make disclosures is reduced to
Oct. 25, 2017: Mandatory disclosure begins for all subcontractors under consideration for covered subcontracts
with a total contract value greater than or equal to $500,000.