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.
