Dive Brief:
- The Department of Labor announced new guidelines when it comes to hiring federal contractors. The action stems from the Fair Pay and Safe Workplaces Executive Order by the president which requires disclosure of labor law violations in the last three years. The public has 60 days to comment on the guidelines.
- Before a contractor, who has had a violation, can be awarded a federal contract, the contractor can reveal any actions taken to correct violations. A compliance officer helps determine if the contractor is suitable for hire.
- Some in the industry call the order the "blacklisting rule.'' The guidelines call for the formation of an online database to record contractors’ labor law violations.
Dive Insight:
Once the contract is awarded, a contractor must update the its labor law status every six months. Industry groups say the executive order increases the cost of doing business, slows the contracting process and puts up barriers to small businesses working with the federal government.
On the other side. "Taxpayer dollars should not reward corporations that break the law and contractors who meet their responsibilities should not have to compete against those who do not," Labor Secretary Thomas Perez said in a statement.