Fair Pay and Safe Workplaces

2014-08-05Executive Order 13673
Signed by: Barack Obama
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Headline: Requires Federal Contractors to Disclose Labor Violations and Pay Records

What it does: Agencies must require contractor disclosure of labor-law violations, appoint Labor Compliance Advisors, and enforce pay and arbitration transparency in contracts.

Real World Impact:
  • Requires contractors to report labor violations for contracts over $500,000.
  • Mandates pay statements every pay period for workers on covered contracts.
  • Limits mandatory pre-dispute arbitration for sexual assault and harassment claims over $1 million.
Topics: labor compliance, worker pay, contracting rules, arbitration rights, government procurement

Summary

This order requires federal contractors to disclose recent labor-law violations and to update that information regularly for contracts above $500,000.

It also requires contractors to give workers pay statements each pay period and to notify individuals when they are treated as independent contractors. For contracts over $1 million, companies cannot force employees to arbitrate sexual harassment or certain discrimination claims before a dispute arises unless the employee later agrees. Agencies must appoint Labor Compliance Advisors and use Department of Labor guidance to implement these rules.

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