July 31, 2014, President Obama signed another Executive Order, called the Fair Pay and Safe Workplaces Executive Order, directed at federal contractors and their subcontractors. This Executive Order changes the procurement process for contracts worth more than $500,000, and requires federal contractors to disclose labor law violations from the past three years. Contractors will be required to report violations of federal and state statutes addressing wage and hour, safety and health, collective bargaining, family and medical leave, and civil rights protections. The Executive Order will require contractors to collect similar information from many of their subcontractors. The agency will weigh the nature and number of the violations to determine whether the contractor may be awarded the contract.
The Executive Order also requires contractors to give their employees information concerning their hours worked, overtime hours, pay, and any additions to or deductions made from their pay. Companies with federal contracts of one million dollars or more are prohibited by the Order from requiring that their employees enter into pre-dispute arbitration agreements for claims arising from Title VII or related sexual assault or harassment claims.
The General Services Administration has been directed to develop a single website for contractors to meet their reporting requirements. The requirements in the Executive Order become effective immediately and will apply to all solicitations for contracts.