Fair Pay and Safe Workplaces Proposed Regulations

Date: 6/9/15
Title: Fair Pay and Safe Workplaces Proposed Regulations

On May 28, 2015, the Department of Labor (DOL) and the Federal Acquisition Regulatory Council (FAR Council) issued proposed guidance on Executive Order 13673, the Fair Pay and Safe Workplaces. The E.O. requires federal contractors and subcontractors to disclose labor violations and efforts to correct them.  Contractors have until July 27, 2015 to provide comments.

Coverage:  All contractors and subcontractors performing or bidding on federal contracts or subcontracts for services or supplies provided in excess of $500,000.

Disclose Requirements: Any administrative merit determinations, arbitral awards or decisions, or civil judgments within the last three years involving any of the 14 covered labor law violations or equivalent state laws. 

New Contract Clause relating to Arbitration:  Federal contracts having an estimated value exceeding $1 million will include clauses prohibiting contractors from requiring their workers to enter into pre-dispute agreements to arbitrate claims arising until Title VII or any tort related to or arising out of sexual assault or harassment.  An agreement to arbitrate such claims may only be made with the voluntary consent of employees or independent contractors after the dispute arises.

Paycheck Transparency: Requires contractors and subcontractors to provide employees working on federal contracts a “wage statement” with each paycheck to ensure paycheck “transparency.”  The statement must contain the total number of hours worked, overtime hours for non-exempt employees, pay, and any additional made to or deductions made from pay in each pay period.  Additionally, all independent contractors performing work under the contract must be informed of their status.

Each contractor’s disclosed violations will be assessed on a case-by-case basis in light of the totality of the circumstances, including severity of the violation(s), size of the contractors, and mitigating factors. 

Disclaimer: The foregoing has been prepared for the general information of clients and friends of Workplace Dynamics LLC and is not being represented as being all-inclusive or complete. It has been abridged from legislation, administrative ruling, agency directives, and other information provided by the U.S. Department of Labor. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel.