Fair Pay and Safe Workplaces Rules Take Effect Beginning Oct. 25

Contractors who bid on federal contracts, or subcontract for businesses that do should be aware of new disclosure requirements that will be implemented this fall President Obama’s Fair Pay and Safe Workplaces executive order will significantly impact how contractors do business and bid on federal contracts.

First, under the new rules, contractors and subcontractors will be required to disclose violations of certain federal and state labor laws before bidding on contracts. The disclosure rules go into effect for prime contractors bidding on federal contracts in excess of $50 million on Oct. 25. Additional disclosure requirements and lower reporting thresholds are to be phased in. By Oct. 25, 2018, all contractors and subcontractors bidding on federal contracts in excess of $500,000 will need to disclose labor law violations that occurred within the previous three years. Companies found to have engaged in “serious,” “repeated,” “willful,” or “pervasive” violations may be suspended or debarred from bidding on federal contracts.

In addition, beginning January 1, 2017, all contractors and subcontractors will need to provide detailed salary and overtime information to all employees, and inform independent contractors of their status in writing. Many of the components are already required of employers pursuant to Minnesota law.

Finally, as of Oct. 25, companies with federal contracts in excess of $1 million cannot require employees to enter into pre-dispute agreements to arbitrate Title VII, sexual assault, or sexual harassment claims.

If you would like more information on these rules and assistance with compliance, please contact one of the Larkin Hoffman labor and employment law attorneys.