Federal Contractor Rules Likely to Repel Construction Firms

September 14, 2016



If you feel the final Fair Pay and Safe Workplaces order seems like more trouble than it's worth, you have company.

On August 24 final rules and guidance implementing the president’s Fair Pay and Safe Workplaces executive order (EO 13,673) were released. The order will require contractors to disclose any violations of 14 federal labor and employment laws and comparable state laws for the previous three years to be eligible for federal contracts worth more than $500,000. It allows agencies to deny contracts based on the disclosures. Additionally, contractors must give workers wage statements under new paycheck transparency mandates. Beginning Oct. 25, companies with federal contracts of at least $1 million will be barred from forcing employees to arbitrate sexual assault or civil rights claims.

In Bloomberg BNA's report, Federal Contractor Rules Likely to Repel Construction Firms, construction business advocacy groups say the final rules have created an “entirely new, very subjective, very vague program.” Many association members have indicated that they will start focusing less on federal contracting opportunities and increasingly on the private and state-level contracting marketplaces.

Elliott T. Dube's report is well worth reading. Included are links to the final rule and the rule guidance.