This morning, the FAR Council and the U.S. Department of Labor issued a final rule implementing Executive Order 13673 – Fair Pay and Safe Workplaces, also known as the “blacklisting rule”.
The final regulations and guidance will be effective starting October 25, 2016, and will impose new reporting requirements on federal contractors and subcontractors. Under this new rule, potential prime and subcontractors bidding on a prime or subcontracts over $500,000 must disclose to the contracting agency, any violations of labor law arising under 14 different federal statutes and comparable state laws, going back three years. These labor violations, which include any mitigating factors and remedial efforts, must be taken into account by the contracting officer and newly created agency Labor Compliance Advisors when considering whether to award or extend a contract.
The rule also includes a requirement for paycheck transparency (what information is listed on an employee or independent contractor’s paycheck) and a requirement for contractors to make clear to workers whether they are an employee or independent contractor. Also, on contracts and subcontracts over $1 million, a contractor may not require workers to enter into mandatory pre-dispute arbitration on discrimination or sexual harassment claims.
The above regulatory requirements have varied phase-in periods beginning in October 25, 2016 for contracts over $50 million. The WIPP Government Relations Team will follow up with a more comprehensive look at the rule later this week. The text of the final rule can be found here.