On August 25, the Federal Acquisition Regulatory (FAR) Council issued its final guidance and regulations for implementing the “Fair Pay and Safe Workplaces” Executive Order that was signed by President Obama in July of 2014.
The executive order mandates a number of reporting requirements for prospective contractors hoping to be awarded federal contracts. Under the regulations, federal contractors will be required to disclose violations of the 14 different labor laws enumerated in the executive order. These laws include the Fair Labor Standards Act (FLSA), the National Labor Relations Act (NLRA), and Title VII, among others. The purpose of the order is to ensure that business is not going to federal contractors that are violating labor laws.
The final rules will start being phased in on October 25, 2016. Whether a contractor will have to begin reporting on this date is dependent on both the role of the contractor and the value of the contract.
Specifically, only prime contractors that have a contract with a total value of $50 million or greater are required to begin reporting on October 25. Starting on April 25, 2017 prime contractors with a contract value of at least $500,000 must also begin reporting. Finally, on October 25, 2017, the reporting requirement begins for all subcontractors being considered for subcontracts of $500,000 or more. The look-back period for violations will be limited to one year initially, but will eventually increase to three years starting on October 28, 2018.
This is merely a summary of the requirements set forth in the newly published guidance and regulations. If you believe this new law affects you, please contact MSEC for assistance.