Labor Department Issues Final Regulations on Federal Contractor Compliance

Labor Department Issues Final Regulations on Federal Contractor Compliance

The action will implement the Fair Pay and Safe Workplaces Executive Order.

The U.S. Department of Labor and the Federal Acquisition Regulatory Council have announced final regulations and guidance for implementing the Fair Pay and Safe Workplaces Executive Order. The order requires federal contractors to disclose labor law violations and provides guidance on how to consider violations when awarding federal contracts.

The goal of the guidance is to increase efficiency and cost savings by making sure federal contractors are responsible and provide workplace protections. A process has also been created for agencies to help contractors comply with labor laws.

"Federal contracts should deliver value for taxpayers in a way that is consistent with our nation's values," said U.S. Secretary of Labor Thomas Perez. "Contractors that illegally cut corners at the expense of their workers should not benefit from taxpayer-funded federal contracts. At the same time, employers who meet their legal responsibilities should not have to compete with those who do not. The regulations and guidance we are announcing today seek to ensure a level playing field for contractors and workers alike."

Once the rule is fully implemented, contractors will be required to disclose violations of 14 basic workplace protections from the three previous years. It will also require employees to be given the necessary information each pay period to verify the accuracy of their paychecks.

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