Fair Pay and Safe Workplaces
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
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.
Questions, answered
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- “What agencies are affected by this order?”
- “How does this order change existing policy?”
- “What are the practical implications of this order?”