On July 31, the Obama Administration issued another executive order (EO) targeted at the federal contracting community. The Fair Pay and Safe Workplaces Executive Order creates a “look-back” requirement for contractors to disclose violations of a number of state and federal safety or wage-related laws and regulations over the past three years when bidding for a federal contract over $500,000. Even after a federal contract is awarded, a contractor will still be required to self-report on labor law violations and, if applicable, the violations of its covered subcontractors to the federal contracting agency every six months. Contractors that disclose violations will have an opportunity to document any actions they have taken to correct the violations and improve compliance. However, a recorded violation can still put a contractor in jeopardy of contract termination, suspension, or even disbarment from future opportunities to do business with the federal government depending on the agency’s assessment of their disclosures.
Read More