Court Enjoins Implementation of Fair Pay Regulation

On August 25, 2016, the FAR Council published the final Fair Pay and Safe Workplaces final rule in the Federal Register.  The Department of Labor’s Office of Federal Contract Compliance Programs also issued guidance to accompany this rule. This final rule implemented E.O. 13673, which was intended to promote contracting efficiency by improving contractor compliance with basic labor standards during the performance of Federal contracts. The final rule contained an effective date of October 25, 2016. 

On October 24, 2016, the day before the rule was to become effective, the Court issued a preliminary injunction to prevent certain sections, provisions, and clauses of the rule from taking effect while the lawsuit is pending.  These sections include implementation of “any portion of the FAR Rule or DOL Guidance relating to the new reporting and disclosure requirements regarding labor law violations as described in Executive Order 13673 and implemented in the FAR Rule and DOL Guidance.”  The Court Order also enjoined implementation of a restriction on arbitration agreements in federal contracts and subcontracts.

On August 26, 2015, the Office of Advocacy submitted a formal comment letter to the FAR Council and the Department of Labor raising several questions regarding the regulation and its potential negative impact on small businesses. As a result of the letter, the final rule was modified to reflect some of the concerns as expressed by Advocacy and the small business community.

The Court Order can be viewed here.

The preliminary injunction order can be viewed here.

The Advocacy comment letter can be viewed here

If you have questions please contact Advocacy, Advocate Major Clark at major.clark@sba.gov.

Date: 
Thursday, November 3, 2016