New Regulations Make Avoiding Labor and Employment Disputes a Criterion for Award of Federal Contracts and Subcontracts On August 24, 2016, the FAR Council released a final rule implementing the 2015 Fair Pay and Safe Workplaces Executive Order. The Department of Labor issued guidance on the final rule the same day. These regulations place new obligations on contractors that work with federal government agencies and on subcontractors that work on federal projects. First, they require most contractors and some subcontractors to report violations of 15 different labor and employment laws in their bids and proposals to contracting agencies and during contract performance. Second, they require most contractors and some subcontractors to provide certain payment documentation to employees and a certain notice to independent contractors. Third, they limit arbitration (as opposed to litigation) of civil claims involving employment discrimination, sexual assault, or sexual harassment. Disclosure of Labor and Employment Law Violations The final rule will ultimately require contractors bidding or proposing on federal contracts valued at more than $500,000 to disclose in their offers any administrative merits determination, arbitral award or decision, or civil judgment rendered against the contractor within the preceding three-year period for violations of any of 15 enumerated federal and state labor and employment laws. The rule will also require potential subcontractors (at any tier) on subcontracts valued at more than $500,000 to disclose the same information to the Department of Labor for the department to render responsibility findings to be considered by the prime contractor. Contractors and subcontractors with contracts of more than $500,000 will have to disclose violations every six months during performance, and they must include in their subcontracts of more than $500,000 provisions that flow down these requirements. Information about violations disclosed by contractors will be made publicly available through the Federal Awardee Performance and Integrity Information System (FAPIIS).
New Regulations Make Avoiding Labor and Employment Disputes a Criterion for Award of Federal Contracts and Subcontracts On August 24, 2016, the FAR Council released a final rule implementing the 2015 Fair Pay and Safe Workplaces Executive Order. The Department of Labor issued guidance on the final rule the same day. These regulations place new obligations on contractors that work with federal government agencies and on subcontractors that work on federal projects. First, they require most contractors and some subcontractors to report violations of 15 different labor and employment laws in their bids and proposals to contracting agencies and during contract performance. Second, they require most contractors and some subcontractors to provide certain payment documentation to employees and a certain notice to independent contractors. Third, they limit arbitration (as opposed to litigation) of civil claims involving employment discrimination, sexual assault, or sexual harassment. Disclosure of Labor and Employment Law Violations The final rule will ultimately require contractors bidding or proposing on federal contracts valued at more than $500,000 to disclose in their offers any administrative merits determination, arbitral award or decision, or civil judgment rendered against the contractor within the preceding three-year period for violations of any of 15 enumerated federal and state labor and employment laws. The rule will also require potential subcontractors (at any tier) on subcontracts valued at more than $500,000 to disclose the same information to the Department of Labor for the department to render responsibility findings to be considered by the prime contractor. Contractors and subcontractors with contracts of more than $500,000 will have to disclose violations every six months during performance, and they must include in their subcontracts of more than $500,000 provisions that flow down these requirements. Information about violations disclosed by contractors will be made publicly available through the Federal Awardee Performance and Integrity Information System (FAPIIS).
Blacklisting-Regulations-Finalized-for-Federal-Contractors-9-1-16.docx