Update: Construction Trade Group Wins Injunction Blocking DOL Workplace Rule

October 25, 2016

Texas Judge Marcia A. Crone issued a preliminary injunction this week to immediately block the Fair Pay and Safe Workplaces Rule, also known as the "blacklisting rule". The rule was scheduled to go into effect on October 25.

Industry associations argued the "blacklisting rule" has the potential to bar federal contractors from contracts and infringe on freedom of speech. The Obama administration said the rule was an effort to strengthen workers’ rights to fair pay and job safety.

ABC, its ABC Southeast Texas Chapter and the National Association of Security Companies (NASCO) filed a legal challenge on October 7 and filed a motion  for temporary restraining order and preliminary injunction on October  13.

Judge Crone's decision blocks the Obama administration's regulation that requires contractors bidding on federal projects greater than $500,000 to disclose recent labor law violations. In her written decision, Judge Crone said the "regulations appear to conflict directly with every one of the labor laws they purport to invoke by permitting disqualification based solely upon 'administrative merits determinations' that are nothing more than allegations of fault asserted by agency employees and do not constitute final agency findings of any violation at all."

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