Early Preparation for 'Blacklisting' Rule

September 1, 2016

On Aug. 24, the Department of Labor issued final regulations implementing President Obama’s “Fair Pay and Safe Workplaces” Executive Order requiring federal contractors and subcontractors to disclose violations of 14 federal labor laws and state law equivalents, when bidding on a government contract

While the final rule is expected to be brought to litigation by business and trade groups, as of now the order goes into effect October 25, 2017, with a provision for contractors requiring wage and status data by January 1, 2017.

More importantly, by the 2017 effective date, prime contractors and subcontractors need to be prepared to report their labor law “violations” as far back as Oct. 25, 2016.

In an interview with Bloomberg's Lydell C. Bridgeford, H. Juanita Beecher, management attorney with Fortney & Scott, said contractors need to be prepared and offered these immediate best practices to be ready for compliance whether the final rule becomes effective as planned or is pushed back by lawsuits.

Best Practices on Disclosure Regs 

  • Establish a multi-discipline team including at a minimum—compliance, law, health and safety, and management.
  • Determine what corporate entity or entities contract with the federal government.
  • Set up a process to collect data from the corporate entities on all activity with the 14 federal agencies and any state OSHA agencies, as well as any arbitration or litigation on labor and employment law.
  • Review all such activities back to Oct. 25, 2016, to determine if any would be currently reportable and at what level.
  • Centralize decision making on any activity that might be reportable, including settlement discussions.
  • Determine how data will be collected and assessed moving forward.

Read more of Ms Beecher's interview in Bloomberg's Q&A: Some Thoughts On The Fair Pay, Safe Workplaces And Sex Discrimination Regs here: