Federal contractors given reprieve on eve of when the rule was to take effect
In an update to our post on September 8, 2016 on the Executive Order Fair Pay and Safe Workplaces, a federal court blocked most of the rule on October 24, 2016. A day before the "backlisting rule" was to take effect, the court determined that the regulation likely violated a host of federal labor laws as well as the First Amendment and due process rights. However, the court left in place the rule's pay transparency provisions.The Eastern District of Texas granted a preliminary injunction against implementation of major and contentious provisions of the Fair Pay and Safe Workplaces Executive Order, to temporarily block implementation and enforcement of: (1) disclosure and disqualification requirements and (2) prohibition on pre-dispute arbitration agreements. This means means that employers may enter into contracts on or after October 25, 2016, even large contracts of $50 million or more, which were the first level for the phased-in requirements. But employers still must comply with the pay transparency provisions.
Preliminary, Not Permanent, Injunction
Federal contractors who have taken steps to identify what might be reportable under the rule should hang onto those documents, in case the court upholds the rule when it decides on a motion for a permanent injunction. If the injunction is vacated or reversed and the blacklisting rule goes into effect, government contractors will have to collect and report violations, including those that occurred after the injunction date.Pay Transparency
The decision leaves in place the paycheck transparency requirements, which require contractors to include information regarding overtime pay and exempt status with each paycheck and to provide certain notices to independent contractors, have not been enjoined and are still scheduled to go into effect in connection with solicitations or contract amendments made on or after January 1, 2017.Read Original Post
