Tuesday, August 5, 2014

President Targets Federal Contractors in Fair Pay and Safe Workplaces Executive Order

Dianne De La Mare and Dana Halvorson 

On July 31, 2014, President Obama signed the Fair Pay and Safe Workplaces Executive Order. This Executive Order will require prospective federal contractors to disclose labor law violations and will give federal agencies more guidance on how to consider labor violations when awarding federal contracts.

The Executive Order only applies to new federal procurement contracts valued at more than $500,000. The Executive Order also prohibits certain federal contractors (e.g., federal contracts and subcontracts of $1 million or more) from entering into pre-dispute arbitration agreements with employees for employee claims involving civil rights and issues arising out of sexual assault or harassment.

The Executive Order is expected to be implemented on new contracts in stages, on a prioritized basis, during 2016, according to a fact sheet from the White House’s Office of the Press Secretary.

It is important to note that this Executive Order does not apply to or impact Medicare or Medicaid providers as it is long-standing policy that these providers are not considered to be federal contractors. These provider agreements are not issued by solicitations for contracts as set forth in the Federal Acquisition Regulations.

There's also video of the President’s speech at the signing event.

If you have any questions, please contact AHCA’s Dianne De La Mare and Dana Halvorson.  

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