Executive Order creates new compliance requirements for federal contractors

August 01, 2014 0 COMMENTS

On July 31, President Barack Obama signed an Executive Order “to promote economy and efficiency in procurement by contracting with responsible sources who comply with labor laws.” The order will apply to new government contracts worth more than $500,000, and according to a White House fact sheet, it will be “implemented on new contracts in stages, on a prioritized basis, beginning in 2016.”

The Executive Order requires contractors to report if they have violated any of 14 labor laws in the past three years. Employers also must provide updates regarding violations every six months and possibly face remedial action.

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Construction association sues to stop OFCCP’s new affirmative action rule

November 23, 2013 0 COMMENTS

On November 19, 2013, Associated Builders and Contractors (ABC), a national association for the construction industry, filed a request for an injunction in the U.S. District Court for the District of Columbia to stop the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) final rule affecting federal government contractors, including construction contractors. The final rule implementing Section 503 of the Rehabilitation Act dramatically alters federal contractors’ existing affirmative action and nondiscrimination obligations for individuals with disabilities. The rule is schedule to go into effect March 24, 2014.

According to ABC, the association filed the lawsuit because “OFCCP exceeded its statutory authority, altered longstanding precedent, and imposed wasteful and burdensome data collection and reporting requirements on government contractors without any supporting evidence from the agency that contractors weren’t meeting the previous requirements.” ABC claims that the new rule “is especially burdensome for construction contractors that will be required to maintain written documentation and track whether the percentage of protected employees meets affirmative action requirements for federal projects. Such paperwork and reporting provisions are completely new to the construction industry—a fact that was not taken into account in OFCCP cost estimates.”

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