President Trump Officially Ends Fair Pay and Safe Workplaces Executive Order
On March 27, President Trump signed a bill formally rolling back the Fair Pay & Safe Workplaces Executive Order signed by President Obama in July 2014 that was to apply to certain government contractors and subcontractors. The Executive Order was controversial from the start, with industry groups labeling it the "Blacklisting" Executive Order. In October 2016, a federal judge enjoined the U.S. government from enforcing two of the three main provisions in the Final Rule implementing the Executive Order.
The Fair Pay & Safe Workplaces Final Rule contained three main provisions:
1. A requirement that companies bidding on government contracts exceeding $500,000 disclose "violations" of various labor laws to the government
2. A prohibition on requiring employees to enter into mandatory pre-dispute arbitration agreements for certain disputes if the contract was for non-commercial items over $1 million
3. A requirement that covered contractors provide certain information about employee pay to employees working on the government contract each pay period
The October 2016 court order halted only the first two provisions, and the paycheck transparency provision became effective January 1, 2017.
The U.S. House of Representatives passed a joint resolution disapproving of the Fair Pay & Safe Workplaces Final Rule in February 2017, and the U.S. Senate followed in early March. President Trump's signature on the bill officially eliminates any obligations federal contractors or subcontractors had or would have had under the Executive Order.
For more information about the effects of the Fair Pay & Safe Workplaces Executive Order rollback, please contact Amy Conway, Stephanie Scheck or the Stinson Leonard Street contact with whom you regularly work.