A new Executive Order issued by President Obama will make it much more difficult for companies to win a federal contract if they violate workers’ rights or withhold wages and overtime from employees. The Order takes effect in 2016, and will be known collectively as the Fair Pay & Safe Workplaces Executive Order.
According to the Order, any company that applies for a federal contract greater than $500,000 will need to provide full disclosure of any employment law violations they have committed, as well as violations committed by subcontractors hired by the company. Crimes committed within the last three years must also be reported. This new system allows for federal contracts to be prioritized, favoring companies with clean records over those shown to have abused their workers’ rights.
The new Order also will prohibit companies with contracts of $1 million or more from requiring their workers to enter into mandatory arbitration agreements for disputes arising out of charges of sexual discrimination, sexual harassment, or assault.
As it stands, companies with federal contracts are some of the largest employers in the entire country, yet more than two million Americans employed under those contracts earn less than is needed to support a family. When it takes effect, the Order will impact contracts that pay out more than $500 billion annually, as reported in the New York Times.
This new Order is part of a continuing effort by the Obama administration to enact laws and regulations that will protect the rights of U.S. workers. Other recent Executive Orders have mandated that federal contractors pay a minimum wage of at least $10.10 an hour and forbids contractors from discriminating against gay, lesbian, and transgender workers.
These new rulings are a part of a continuing effort by the Obama administration to enact laws and regulations that will protect the rights of U.S. workers. Other recent Executive Orders have mandated that federal contractors pay a minimum wage of at least $10.10 an hour and forbids contractors from discriminating against gay, lesbian, and transgender workers.
Kevin J. Stoops
Kevin Stoops is an experienced trial attorney who appears frequently in Michigan state courts and federal courts across the United States, representing clients in complex business litigation. He has vast experience and a track record of successful outcomes high-dollar matters involving trade secret, business tort, intellectual property, executive employment, and class action claims.
