Attorneys with Fortney & Scott, LLC, in Washington, D.C., who edit Federal Employment Law Insider, sprang into action after the U.S. Department of Labor (DOL) issued final regulations on August 25 implementing the Fair Pay and Safe Workplaces Executive Order—often called the “blacklisting” rule. The controversial rule will require federal contractors and subcontractors to disclose purported violations of 14 federal laws (and their state-law equivalents) during the preceding three-year period when bidding on federal contracts worth more than $500,000.
To help readers and others who fall into that target group, Fortney & Scott’s Blacklisting Team has prepared a White Paper outlining the new obligations, along with suggestions on how to proceed. You may access the White Paper here. Following are some key points:
- Federal contractors’ new obligations are “significant,” including “self-reporting on their compliance with labor and employment laws; assessing the responsibility of subcontractors at all tiers of the supply chain; providing wage statements to employees each pay period and a notice to independent contractors pursuant to ‘pay transparency’ requirements; and placing restrictions on mandatory employment arbitration programs.”
- In a key departure from the proposed rule, the final rule provides that subcontractors will report their labor law violations to the DOL for assessment rather than to the prime contractor.
- In another major change, the final rule will be phased in over a 12-month period beginning October 25, 2016. The key dates for when the new provisions will become effective are summarized in a chart included in the White Paper.
- The three-year disclosure period for contractors also will be phased in. Initially, beginning on October 25, 2016, the reporting disclosure period will be limited to one year (or since October 25, 2015). The disclosure period will gradually increase to three years by October 25, 2018.
- The White Paper lists eight specific “practical steps for compliance.”
Fortney & Scott attorneys will continue to monitor the “extremely onerous and burdensome” new final rule and provide updates as needed in Federal Employment Law Insider. The firm’s Blacklisting Team includes attorneys David Fortney, Jacqueline Scott, Susan Warshaw Ebner, Judith Kramer, H. Juanita (“Nita”) Beecher, Burton Fishman, and Sean Lee. You can reach them at 202-689-1200 or www.fortneyscott.com.