President Trump Revokes Fair Pay & Safe Workplaces Executive Order
Federal contractors can remove one onerous federal disclosure from their compliance obligations. President Trump recently issued an executive order rescinding the Fair Pay & Safe Workplaces Executive Order issued by the prior administration. Accordingly, the controversial “blacklisting” regulations are no longer in force.
Executive Order 13673 was designed to increase efficiency and cost savings in federal contracting by improving contractor compliance with labor laws. For procurement contracts for goods and services where the estimated value of the supplies acquired and services required exceeds $500,000, contractors were required to disclose violations of 14 basic workplace protections from the prior three years, including those addressing wage and hour, safety and health, collective bargaining, family and medical leave, and civil rights protections. The Executive Order also required contracting officers to consider the decisions (including any mitigating factors and remedial measures), as part of the contracting officer’s decision to award or extend a contract.
The Executive Order also prohibited certain arbitration agreements. It specifically prohibited contractors and subcontractors who entered into contracts for non-commercial items over $1 million from entering into any mandatory pre-dispute arbitration agreement with their employees or independent contractors on any matter arising under Title VII as well as any tort related to or arising out of sexual assault or harassment.
Finally, the paycheck transparency provision of the Executive Order mandated that all covered contractors inform workers in each paycheck of the number of hours worked, overtime calculations (for non-exempt employees), rates of pay, gross pay, additions or deductions from pay, and whether they have been classified as independent contractors.
Slow Death of Fair Pay & Safe Workplaces Executive Order
Legal challenges left many of the provisions in limbo for the past few years. In 2016, a U.S. District Court in Texas halted implementation of the employment law violation disclosure requirements and the restriction on arbitration agreements. However, the paycheck transparency provisions took effect on January 1, 2017.
Earlier this year, Congress passed a Congressional Review Act (CRA) Joint Resolution of Disapproval Fair Pay & Safe Workplaces Executive Order, which disapproved the regulations implementing the Fair Pay & Safe Workplaces Executive Order. Earlier this month, President Trump signed the resolution and issued his own executive order officially rescinding the federal contracting requirements
Based on the above legal developments, federal contractors may cease all implementation activities related to the labor law violation disclosure requirements. They also are no longer required to comply with the paycheck transparency provisions.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Jorge R. de Armas or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Fair Pay & Safe Workplaces Executive Order Revoked
Author: Scarinci Hollenbeck, LLC
President Trump Revokes Fair Pay & Safe Workplaces Executive Order
Federal contractors can remove one onerous federal disclosure from their compliance obligations. President Trump recently issued an executive order rescinding the Fair Pay & Safe Workplaces Executive Order issued by the prior administration. Accordingly, the controversial “blacklisting” regulations are no longer in force.
Executive Order 13673 was designed to increase efficiency and cost savings in federal contracting by improving contractor compliance with labor laws. For procurement contracts for goods and services where the estimated value of the supplies acquired and services required exceeds $500,000, contractors were required to disclose violations of 14 basic workplace protections from the prior three years, including those addressing wage and hour, safety and health, collective bargaining, family and medical leave, and civil rights protections. The Executive Order also required contracting officers to consider the decisions (including any mitigating factors and remedial measures), as part of the contracting officer’s decision to award or extend a contract.
The Executive Order also prohibited certain arbitration agreements. It specifically prohibited contractors and subcontractors who entered into contracts for non-commercial items over $1 million from entering into any mandatory pre-dispute arbitration agreement with their employees or independent contractors on any matter arising under Title VII as well as any tort related to or arising out of sexual assault or harassment.
Finally, the paycheck transparency provision of the Executive Order mandated that all covered contractors inform workers in each paycheck of the number of hours worked, overtime calculations (for non-exempt employees), rates of pay, gross pay, additions or deductions from pay, and whether they have been classified as independent contractors.
Slow Death of Fair Pay & Safe Workplaces Executive Order
Legal challenges left many of the provisions in limbo for the past few years. In 2016, a U.S. District Court in Texas halted implementation of the employment law violation disclosure requirements and the restriction on arbitration agreements. However, the paycheck transparency provisions took effect on January 1, 2017.
Earlier this year, Congress passed a Congressional Review Act (CRA) Joint Resolution of Disapproval Fair Pay & Safe Workplaces Executive Order, which disapproved the regulations implementing the Fair Pay & Safe Workplaces Executive Order. Earlier this month, President Trump signed the resolution and issued his own executive order officially rescinding the federal contracting requirements
Based on the above legal developments, federal contractors may cease all implementation activities related to the labor law violation disclosure requirements. They also are no longer required to comply with the paycheck transparency provisions.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Jorge R. de Armas or the Scarinci Hollenbeck attorney with whom you work, at 201-896-4100.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
