05/25/2017 by Managing Partner Michael L. Sterling
On March 27, 2017, President Trump repealed the “Fair Pay and Safe Workplaces” regulations issued by Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA). These “Blacklisting” regulations required contractors to disclose federal employment and labor law violations when bidding, to comply with pay transparency obligations, and to limit employee pre-dispute arbitration agreements.
Contractors that modified their terms and conditions to incorporate the “Fair Pay and Safe Workplaces” obligations should consider removing those requirements. Indeed, it is a good practice for contractors to review their subcontract and purchase order terms and conditions annually.
Subcontractors and vendors should also review subcontracts and purchase orders for terms and conditions that are not consistent with current law. However, even in the absence of the “Fair Pay and Safe Workplaces” regulations, contractors should remain cautious about compliance with the Davis-Bacon Act, and other social and employment programs to avoid sanctions.