WASHINGTON, D.C. -- A new federal executive order requires contractors seeking to do business with the federal government to disclose any labor law violations. The order also offers direction to hiring agencies regarding how to consider any such violations in the awarding of contracts.
In a July 31 release, the White House cites inadequate pay and faulty hiring practices as reasons for the order. “While the vast majority of federal contractors play by the rules,” the release asserts, “every year tens of thousands of American workers are denied overtime wages, not hired or paid fairly because of their gender or age, or have their health and safety put at risk by corporations contracting with the federal government that cut corners. Taxpayer dollars should not reward corporations that break the law, so today President Obama is cracking down on federal contractors who put workers’ safety and hard-earned pay at risk.”
The new “Fair Pay & Safe Workplaces” executive order will apply to companies seeking federal procurement contracts valued in excess of $500,000. It will require them to provide information regarding the company’s record of compliance with federal labor laws.