New Executive Order Requires Federal Contractors to Disclose Labor Law Violations

On July 31, President Obama issued an executive order (EO) that will require prospective federal contractors to disclose labor law violations from the past three years before they can win a contract. The EO text was not available at the time of publication. However, according to a fact sheet issued by the White House, the executive order will require federal contractors to disclose any violations of 14 related federal statutes and the equivalent state laws. The mandate will also require prime contractors to collect similar information from “many of their subcontractors.” In addition, the EO would encourage contracting officers to take into account “the most egregious violations” during source selection. Federal agencies will also have to designate a senior official as a labor compliance advisor to provide guidance on whether contractors’ actions rise to the level of a lack of integrity or business ethics. The General Services Administration is tasked with developing a single website for contractors to meet their reporting requirements. The White House explains that contractors will only have to provide information to one location, even if they hold multiple contracts across different agencies. The EO would apply to new federal contracts over $500,000. When exactly the EO would apply to new contracts remains unclear. AGC will provide more information as it becomes available. For more information, please contact Jimmy Christianson at 703-837-5325 or christiansonj@agc.org.