Wednesday, August 12, 2020

Executive Order on Aligning Federal Contracting and Hiring Practices with the Interests of American Workers

On August 3, 2020, President Donald J. Trump issued an Executive Order (EO) to address the use of temporary foreign labor for contracts performed in the United States. The EO directs Federal agencies and departments to conduct a review of contracts and subcontracts awarded in 2018 and 2019 fiscal years to assess the following:
  • whether contractors and/or subcontractors used temporary foreign labor to perform work; the nature of the work performed; if opportunities for American workers were affected by such hiring; and if there were any potential effects on national security as a result.
  • whether contractors and/or subcontractors performed work in foreign countries when work was previously conducted in the United States, and if so, were American workers affected by the offshoring; whether affected workers were eligible for assistance under the Trade Act of 1974; and if there were any potential effects on national security as a result.
The head of each agency is required to assess any negative impact of contractors’ foreign labor hiring practices and propose action. They are also required to coordinate with the Director of the Office of Personnel Management to review employment practices and ensure compliance with Executive Order 11935 of September 2, 1976 (Citizenship Requirements for Federal Employment) as well as Section 704 of the Consolidated Appropriations Act, 2020, Public Law 116-93. A summary report of each agency’s assessment is due to the Director of the Office of Management and Budget within 120 days of the Executive Order. The guidance provided in the Executive Order does not clearly define how the departments will carry out their assessments. However, it does require that their summaries include the results of their reviews and recommendations of corrective action, if necessary.

Lastly, the Executive Order directs the Secretaries of Labor and Homeland Security to take action, as appropriate and consistent with law, within 45 days of the order, to protect United States workers from and adverse effects on wages and working conditions caused by third party employment.