Today, the final rule implementing Executive Order (EO) 13673 (also known as the “Fair Pay and Safe Workplaces EO”) and the corresponding Department of Labor Guidance was made available for public inspection and will be published in tomorrow’s Federal Register. Additionally, the president amended EO 13673 to add language that will bolster the final rules against litigation challenging their constitutionality and their conflict with other federal statutes.
The EO requires prospective federal contractors and subcontractors to disclose labor law violations and provides guidance for agencies on how to consider labor violations when awarding federal contracts.
Unlike the proposed regulation and guidance issued in May 2015, the final rules include some positive changes for federal contractors, including an extension of the compliance timeline and a change in reporting requirements for subcontractors who will make their disclosures to DOL as opposed to the prime contractor. With the new rule fully phased in, prospective federal contractors will be required to disclose violations of 14 federal labor and employment laws (and their state equivalents) for the last three years in order to be considered for new federal contracts valued at more than $500,000.
The main points of the final rule include:
We will provide a more detailed analysis once we have a chance to review the text of the final rules. In the meantime, DOL has published a press release and created a website with further information on the final guidance and regulations.