What’s Next For Federal Contractors?

By Tennessee Construction Lawyers | March 10, 2017

A special guest post by Lewis Thomason employer lawyer Janet Hayes.

When it comes to signing Executive Orders, President Barack Obama proved there is no shortage of ink in the presidential pen. Obama’s sweeping executive actions frequently targeted federal contractors.

While President Trump’s agenda is vastly different from his predecessor, he has already proven he shares Obama’s love for the Executive Order. As Trump works to change the nation’s course, federal contractors are anxiously waiting to see whether Obama’s orders remain law or whether the new president will play the “trump” card.

$10.00 Per Hour Minimum Wage And Sick Leave: Future Is Questionable.
Another Obama Executive Order directed at federal contractors raised the minimum wage for employees of federal contractors to over $10.00 per hour and mandated that federal contractors offer up to 7 days of annual paid sick leave to workers. The Trump administration has not addressed this Executive Order, and it remains uncertain whether President Trump will roll back these federal mandates. Stay tuned.
Black Listing Rule: Implementation Currently Blocked.
The Fair Pay and Safe Workplaces Rule, known as the “Blacklisting Rule,” is a proposed regulation that arose out of an Obama Executive Order. The rule requires that federal contractors report all violations of 14 different labor laws, plus similar state laws, to the federal government. Reporting includes alleged violations that have not been fully litigated in court. Under the rule, the federal government could, based on the reporting, determine whether a federal contractor is responsible enough to be awarded more contracts.
A day before its scheduled October 2016 implementation, a U.S. District Judge issued a preliminary injunction stating that construction industry groups had “properly demonstrated immediate and ongoing injury to their members if the rule is allowed to take effect.” In the meantime, just last week, Republican members of the House and Senate have issued a joint resolution of disapproval in an attempt to rescind the Black Listing Rule. Congress has 60 days to review and reject the rule in order to repeal it. Given the current alignment of the executive and legislative branches, federal contractors can smile and expect likely death of the Blacklisting Rule.

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