Fair Pay and Safe Workplaces

This executive order requires federal contractors and subcontractors with contracts over $500,000 to disclose labor law violations from the past three years during bidding and every six months during performance. It mandates paycheck transparency for workers and restricts mandatory pre-dispute arbitration for certain discrimination and sexual assault/harassment claims on contracts over $1 million. The order creates Labor Compliance Advisor positions at each agency and directs regulatory amendments to implement these requirements.

Federal Register Open PDF 79 FR 45309

Impact dates

Date TBD
FAR Council to propose FAR amendments
Date TBD
Final FAR regulations to be issued after public comment
Date TBD
Secretary of Labor to develop guidance on violation severity
Jul 31, 2015
Annual public reporting by Labor Compliance Advisors
Oct 29, 2014
Labor Compliance Advisors to meet quarterly with deputy secretary equivalent

Key directives

Contractors must disclose labor law violations from preceding 3 years for contracts over $500,000
Subcontractors must disclose violations and update every 6 months for subcontracts over $500,000
Contractors must provide paycheck transparency documents each pay period showing hours, overtime, pay, deductions
Mandatory pre-dispute arbitration prohibited for Title VII and sexual assault/harassment tort claims on contracts over $1 million
Each agency shall designate a Labor Compliance Advisor
FAR Council shall propose amendments to Federal Acquisition Regulation
Secretary of Labor shall develop guidance on serious, repeated, willful, pervasive violation standards
Administrator of General Services shall develop single website for contractor reporting

Who is ordered

Timeline

Immediate

EO effective immediately upon signing
Agencies must designate Labor Compliance Advisors

Near term (90d)

FAR Council to propose FAR amendments
Secretary of Labor to develop guidance on violation severity standards
Administrator of General Services to develop single website for contractor reporting

Long term

Final FAR regulations to be issued
Annual public reporting by Labor Compliance Advisors on agency labor compliance actions
Quarterly meetings between Labor Compliance Advisors and senior agency officials ongoing

Risks & tensions

EO applies only after final FAR rule issued; actual contractor obligations delayed until rulemaking complete
Burden on small businesses explicitly acknowledged but 'minimize to extent practicable' leaves discretion
Arbitration restrictions in Section 6 may face legal challenges under Federal Arbitration Act preemption
Definition of 'serious, repeated, willful, or pervasive' left to future Labor Department guidance, creating uncertainty for contractors
Information sharing between Labor Department and contracting agencies raises potential due process concerns for contractors
EO was later stayed by federal courts and effectively rescinded; actual implementation never fully realized