Aligning Federal Contracting and Hiring Practices With the Interests of American Workers

2020-08-06Executive Order 13940
Signed by: Donald Trump
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Headline: Federal Agencies Must Review Contractors' Use of Foreign Temporary Labor

What it does: Agencies must review recent federal contracts for use of temporary foreign labor and offshoring, and report findings and proposed corrective actions to the Office of Management and Budget.

Real World Impact:
  • May lead agencies to change contractor hiring or procurement practices.
  • Requires reports to the Office of Management and Budget within 120 days.
  • Labor and Homeland Security must act to protect H-1B workers' wages.
Topics: federal contracting, worker protections, immigration and visas, government hiring, national security

Summary

This order directs federal agencies to review contracts from fiscal years 2018 and 2019 to determine if contractors used temporary foreign labor in the United States or moved work overseas.

Agencies must assess effects on opportunities for U.S. workers, wages, and national security, and coordinate with the agency that manages federal hiring rules. Agencies must send a report to the Office of Management and Budget within 120 days with findings and recommended corrective actions. The Labor and Homeland Security departments must act within 45 days to protect wages and conditions for H-1B worksites.

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