On March 27, 2017, President Trump officially revoked former President Barack Obama’s Executive Order 13673 – Fair Pay & Safe Workplaces, also known as the "blacklisting" executive order. In essence, the rule had:
- required federal contractors and subcontractors to report any alleged labor violations in the preceding three years with regard to numerous laws, including, but not limited to, the FLSA, OSHA, NLRA, FMLA, and antidiscrimination statutes;
- penalized contractors that implement or attempt to enforce arbitration agreements covering Title VII claims;
- required contractors holding federal contracts worth more than $500,000 to provide the following information to employees with each paycheck: hours worked; overtime hours; rate of pay; gross pay; and any additions to or subtractions from pay (like bonuses, awards and shift differentials).
On October 24, 2016, a Texas district court blocked implementation of the rule’s disclosure requirements and its ban on pre-dispute arbitration agreements. However, the court did not block implementation of the rule requiring paycheck disclosure, which has been in effect since January 1, 2017.
Key Takeaway for Members
ALL parts of this order are now revoked and it will not go into effect, therefore:
- Federal contractors will not be required to report alleged labor violations to federal agencies as part of the bid process;
- are not required to implement procedures to comply with the required paycheck transparency, and;
- will not be prohibited from entering into mandatory arbitration agreements concerning employee Title VII claims.
Source: Michael Hyatt, HR Government Affairs Director, MRA – The Management Association