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Congressional Research Service
~InformIing the Iegiative debate sine 1914
0
July 15, 2015
Fair Pay and Safe Workplaces Order: Answers to Questions
On July 31, 2014, President Obama issued Executive Order
13673, Fair Pay and Safe Workplaces, with the stated intent
of increasing efficiency and cost savings by ensuring that
executive branch procurement contractors understand and
comply with labor laws.
What does the order require?
The order requires that contractors and subcontractors
disclose information about their compliance with 14
specified federal labor laws and their state equivalents as
part of the award process. The order also requires that
agency contracting officers take these disclosures into
consideration when assessing whether prospective vendors
have a satisfactory record of integrity and business ethics
as part of the responsibility determination process.
Agencies generally cannot award a procurement contract
without determining that the prospective vendor is
affirmatively responsible for purposes of that specific
contract.
In addition, the order imposes requirements intended to
promote paycheck transparency for contractor employees
and limit mandatory arbitration of employee claims.
Has the order been implemented?
The order itself was effective immediately on its July 31,
2014, issuance, at which time the White House indicated
that it anticipates that the order's requirements will be
applied to new contracts in stages, beginning in 2016.
There does not appear to be any provision for application of
the order's requirements to existing contracts, or new orders
under existing contracts. In early 2015, agencies issued
guidance and proposed rules to implement the order.
What federal labor laws are covered?
Executive Order 13673 requires covered contractors and
subcontractors to disclose violations of the following
fourteen federal labor laws.
Law Basic Requirements
Fair Labor Standards Act Minimum wage, overtime pay, and
(FLSA) child labor standards
Occupational Safety and Workplace safety standards
Health Act (OSH Act)
Migrant and Seasonal Protections for migrant and seasonal
Agricultural Worker workers in dealings with agricultural
Protection Act (MSPA) employers, agricultural associations,
and farm labor contractors
National Labor Relations
Act (NLRA)
Davis-Bacon Act
Service Contract Act
Executive Order 11246
on Equal Employment
Opportunity
Section 503 of the
Rehabilitation Act (Rehab
Act)
Vietnam Era Veterans
Readjustment Assistance
Act (VEVRA)
Family Medical Leave Act
(FMLA)
Title VII of the Civil
Rights Act of 1964
Americans with
Disabilities Act (ADA)
Age Discrimination in
Employment Act (ADEA)
Executive Order 13658
Establishing a Minimum
Wage for Contractors
Employee right to unionize and
engage in collective bargaining
Minimum wage and fringe benefits
for construction contractor workers
Minimum wage and fringe benefits
for service contractor employees
Prohibits contractors from certain
types of employment discrimination
Contractor affirmative action
requirements as to individuals with
disabilities
Contractor affirmative action
requirements as to veterans
job-protected, unpaid leave for
specified family and medical reasons
Prohibits certain types of
employment discrimination
Prohibits discrimination against
disabled individuals
Prohibits employment discrimination
against those aged 40 or older
Requires that contractors pay a
minimum wage of $10.10 for certain
employees
What state laws are to be seen as the
equivaLent of covered federal laws?
Executive Order 13673 itself does not identify state laws
that are equivalent to the specified federal laws, and the
recently issued guidance and regulations partially
implementing the order provide no additional clarity other
than observing that OSHA-approved state health and safety
regulatory plans are equivalent state laws.
What is the President's authority to
impose these requirements?
When issuing Executive Order 13673, President Obama
expressly referenced 40 U.S.C. §121 and the promotion of
economy and efficiency in contracting. In so doing, he
invoked provisions of the Federal Property and
Administrative Services Act of 1949, as amended, which
authorize the President to prescribe policies and directives
that [he] considers necessary to provide the Federal
Government with an economical and efficient system for...
[plrocuring and supplying property and ... services.
www.crs.gov 1 7-5700](ViewImageLocal?handle=hein.crs/crsuntaakbd0001&div=1&collection=&method=preview&ext=.png&size=3)
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