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New Executive Order Requires Federal Contractors to Disclose Labor Law Violations

On July 31, President Obama issued an executive order imposing new mandates on federal contractors.  The Fair Pay and Safe Workplaces Executive Order helps federal agencies “identify and work with contractors with track records of compliance” with labor laws in order to “reduce execution delays and avoid distractions and complications that arise from contracting with contractors with track records of noncompliance.”  It imposes new obligations on federal contractors.

On July 31, President Obama issued an executive order imposing new mandates on federal contractors.  The Fair Pay and Safe Workplaces Executive Order helps federal agencies “identify and work with contractors with track records of compliance” with labor laws in order to “reduce execution delays and avoid distractions and complications that arise from contracting with contractors with track records of noncompliance.”  It imposes new obligations on federal contractors.

Starting in 2016 for all federal contracts over $500,000, the executive order mandates the disclosure of all labor law violations for the past three years.  Prime contractors must disclose any administrative merits determinations, arbitral awards or decisions, or civil judgment rendered against the company for violations of any of 14 federal statutes and executive orders, as well as “equivalent” state laws.  Post-award, contractors must update the disclosures every six months.  Contracting agencies must consider the disclosures in determining whether the contractor is a “responsible source” and whether further action is needed.  Further action could include additional remedial measures, compliance assistance, declining to exercise an option on a contract, contract termination, suspension, or debarment.  The executive order goes even further and requires contractors to impose similar requirements on all subcontracts over $500,000.

If you have any questions about this executive order or any other legal issues regarding your business feel free to contact Connell Foley’s New York Construction Law Group for guidance on this or any other construction related issue.

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