On May 28, 2015, the Department of Labor (DOL) and Federal Acquisition Regulatory Council (FARC) issued proposed guidance and a proposed rule, respectively, implementing Executive Order 13673, Fair Pay and Safe Workplaces, which is also being referred to as the “Blacklisting” Executive Order. The proposed guidance from the DOL can be found at: https://www.federalregister.gov/articles/2015/05/28/2015-12562/guidance-for-executive-order-13673-fair-pay-and-safe-workplaces. The proposed rule amending the Federal Acquisition Regulations can be found at: https://www.federalregister.gov/articles/2015/05/28/2015-12560/federal-acquisition-regulation-fair-pay-and-safe-workplaces.
The Executive Order requires federal contractors to disclose certain violations that have occurred during the previous three years during the bidding process for federal contracts over $500,000. There are 14 federal laws and executive orders covered, along with as of yet undefined “equivalent State laws”. The proposed rule defines violations as administrative merits determinations, awards or decisions from arbitration, or civil judgements. These would include things such as show-cause notices issued by the Office of Federal Contract Compliance Programs (OFCCP). Contract bidders would also be required to report violations that are currently being appealed or further reviewed.
Government contracting officers and someone from the newly created labor compliance advisors agency will assess employers bidding on the contract. If an award is received, the employer must provide semi-annual updates every six months. If work performed under the covered contract is subcontracted, the prime contractor must obtain from the subcontractor(s) the same labor compliance history that they must themselves disclose.
The proposed changes would also require covered contractors and subcontractors to provide all employees working on the contract with a “wage statement” each pay period. The statement must list the number of hours worked, overtime hours, pay, and any additions and deductions from pay. Written exemption notices will also be required to be given to any employees exempt from overtime under the Fair Labor Standards Act. Employers would be required to provide a written notice to individuals working on the contact as an independent contractor, informing them of their status. A new notice would be required for each covered contract.
We feel that the most difficult part of complying with the proposed guidance and rule would be to coordinate the staff responsible for the different areas of compliance that are covered.
Please contact us by calling (732) 446-2529 or sending us an e-mail at glennbarlett@gbcs.net if you are interested in discussing the “blacklisting” Executive Order or the proposed guidelines and rule.