Federal Contractors– Beware Disclosure Obligation and Principled Disputes

Federal Contractors — federal agencies have begun to implement the Fair Places and Safe Workplaces Executive Order   https://www.whitehouse.gov/the-press-office/2014/07/31/executive-order-fair-pay-and-safe-workplaces

The National Labor Relations Board is the first to demand compliance– beginning July 1, 2016, the Board is asking employers charged with labor law violations to submit a form that confirms, among other things, whether they are a federal contractor.

Once fully implemented, the Executive Order will require prospective federal contractors to disclose labor law violations under 14 covered federal statutes, includes but not limited to

* Fair Labor Standards Act (FLSA)

* Occupational Safety and Health Act (OSHA)

* National Labor Relations Act (NLRA)

* Family & Medical Leave Act (FMLA)

* Title VII of the Civil Rights Act (Title VII)

The Board will inform employers that if they settle before the Region issues a complaint, the employer will not be required to disclose the allegation and will not risk debarment or disfavor as a federal contractor.  Hence the warning in the title — the threat is clear.  There is immense pressure to settle even bogus claims in order to avoid an adverse decision and putting your status as a government contractor in jeopardy.

Lawsuits challenging this Executive Order are anticipated, so stay tuned.

Contact info: Meredith S. Campbell Chair, Employment and Labor Group, Shulman Rogers mcampbell@shulmanrogers.com | T 301.255.0550 | F 301.230.2891


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