WASHINGTON ALERT
Stephanie Salmon, AFS Washington Office; Jeff Hannapel & Christian Richter, The Policy Group, Washington, D.C. Court Blocks New Federal Contracting Rules
THE POLICY, THE FAIR PAY AND SAFE WORKPLACES, WAS SCHEDULED TO GO INTO EFFECT ON OCTOBER 25 FOR CONTRACTS OF $50 MILLION OR MORE, AND NEXT APRIL 2017 FOR CONTRACTS WORTH MORE THAN $500,000.
On October 24, a Texas judge is-
sued a preliminary injunction blocking enforcement of new rules requiring many U.S. government contractors to disclose labor law violations, includ- ing workplace safety violations, when bidding for contracts. Te policy, the Fair Pay and Safe Workplaces, was scheduled to go into effect on Octo- ber 25 for contracts of $50 million or more, and next April 2017 for contracts worth more than $500,000. Federal contractors also are responsible to ask their subcontractors if they have reported violations and the types of vi- olations, and then determine whether they want to move forward with those subcontractors. Te administration’s goal was to deny federal contracts to companies if their track record is poor. In the court order, the judge
noted that the new system went beyond what Congress authorized and specifically highlighted that the regulations’ public disclosure and disqualification requirements “are nowhere found in or authorized by the statute” that they rely on.
At this time, direct federal con-
tractors will not be required to report labor law violations with their bids. In the meantime, the Labor and Justice Departments are reviewing the deci- sion and considering their options to counter this court order.
A Texas judge issued a preliminary injunction blocking enforcement of new rules requiring many U.S. government contractors to disclose labor law violations, including workplace safety violations, when bidding for contracts
28 | MODERN CASTING November 2016
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