Federal Court Halts Implementation of Contractor Rule
Nov 22, 2016
On October 24th, a federal judge barred the federal government from enforcing most of the provisions of Executive Order 13673, the Fair Pay and Safe Workplaces. The rules and guidance require federal contractors to disclose recent labor violations when bidding on a new contract, and these rules allow agencies to deny contracts to egregious violators who do not take remedial actions. In granting the preliminary injunction, Judge Marcia A. Crone of the U.S. District Court for the Eastern District of Texas, stated “This court has authority to enjoin the implementation of those portions of the Executive Order 13673 that impose new reporting requirements on contractors and subcontractors regarding labor law violations and restrict the availability of arbitration agreements on a nationwide basis and finds that it is appropriate to do so in this case.” These rules, labeled by the business community as “blacklisting,” would have begun to apply to contractors on October 25th bidding on awards valued at $50 million dollars or more. Eventually, these same rules would extend to subcontractors seeking contracts of $500,000 or more. One provision still standing is the clause that as of Jan. 1, 2017, companies bidding on contracts valued at $500,000 or more inform workers about their independent contractor status and provide other wage and benefit details. Sign up to receive the most up-to-date regulatory and legislative information about specialty imaging.
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