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President Trump Strikes Down Fair Pay Order

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April 4, 2017
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Federal contractors no longer have to comply with the provisions of the Fair Pay & Safe Workplaces Executive Order after President Donald Trump erased it last week.

President Trump issued an executive order March 27 to revoke a July 2014 executive order from then-President Barack Obama that required federal contractors to disclose labor law violations during bidding. The order also directed agencies on how to consider those violations when awarding federal contracts.

The executive order has been scrapped until further notice.

A phased-in schedule of the order and final rule that went into effect in October eventually would have required all prime contractors and subcontractors with contracts equal to or greater than $500,000 to disclose labor law violations as part of the bid process. A paycheck transparency clause took effect at the start of the year, requiring contractors to provide wage statements and notice of any independent contractor relationship to their workers. The final rules also prohibited contractors from entering into mandatory arbitration agreements regarding Title VII claims. But because of President Trump’s order, none of this is now required.

Federal contractors with questions about the order should reach out to Barley Snyder’s Employment Law Group.


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