President Obama Signs Fair Pay and Safe Workplaces Executive Order

On Thursday, July 31, President Obama signed an executive order that requires federal contractors to disclose labor law violations from the last three years before they can receive a contract. The executive order also gives agencies guidance on how to consider labor violations when awarding federal contracts. This executive order will impact employers who have federal contracts valued at more than $500,000. In addition, for contractors with contracts in excess of $1 million dollars, the executive order directs them to “not require their employees to enter into pre-dispute arbitration agreements for disputes arising out of Title VII of the Civil Rights Act or from torts related to sexual assaults or harassment (except when valid contracts already exist).” Finally, the executive order requires contractors to give their employees information concerning their hours worked, overtime hours, pay, and any additions or deductions made from their pay. The provisions of this executive order are expected to be implemented on new federal contracts in 2016. A draft of the regulations and guidance will be published for public comment before being finalized. More information on the executive order signed on Thursday is available at http://www.whitehouse.gov/the-press-office/2014/07/31/fact-sheet-fair-pay-and-safe-workplaces-executive-order.  The executive order itself can be found at http://www.whitehouse.gov/the-press-office/2014/07/31/executive-order-fair-pay-and-safe-workplaces.