Events and News

US Department of Labor Releases Fair Pay and Safe Workplaces Final Rule

August 25, 2016

The long-awaited final rule and guidance implementing the “Fair Pay and Safe Workplaces” executive order was published in the Federal Register on August 25, 2016. The Executive Order, signed by President Barack Obama two years ago, requires businesses to disclose any violations of 14 federal labor and employment laws during the bid and proposal process for the previous three years to be eligible for contracts worth more than $500,000. The rule has still yet to specify the state law violations that have to be disclosed as part of the new order. Businesses, including some metalcasting facilities, may be blocked from working with the federal government under the new rule.

Implementation of the new regulation for prime contractors begins on October 25, 2016, for contracts of $50 million or more and requires reporting of one prior year of labor law violations. The threshold for contract size drops to $500,000 on April 25, 2017. The reporting period will extend to the three prior years of labor law violations starting on October 25, 2018.

Subcontractor disclosure provisions will be phased in under the rule and will not be required until October 25, 2017. Additionally, subcontractors will report directly to the contracting agency and not through the prime contractor. A coalition of business groups has vowed to challenge the new regulation, citing a number of vulnerabilities. For further information, contact Stephanie Salmon, AFS Washington Office, ssalmon@afsinc.org