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Final Rule on Fair Pay and Safe Workplaces Published

Wednesday, August 31, 2016

(North American Meat Institute)

The Department of Defense, the General Services Administration and the National Aeronautics and Space Administration issued a final rule amending the Federal Acquisition Regulation to implement Executive Order 13673, Fair Pay and Safe Workplaces. The final rule corrects a statutory citation, modifies the handling of subcontractor disclosures and clarifies the requirements for public disclosure of documents.

The Executive Order requires that prospective and existing contractors on covered contracts disclose decisions regarding violations of certain labor laws, and that contracting officers, in consultation with agency labor compliance advisors, consider the decisions as part of the contracting officer's conclusion to award or extend a contract. In addition, the Executive Order creates new paycheck transparency protections to ensure that workers on covered contracts are given the necessary information to verify the accuracy of their pay. The Executive Order also limits the use of pre-dispute arbitration clauses in employment agreements on covered federal contracts. The Department of Labor simultaneously issued final guidance to assist federal agencies in implementing the Executive Order.

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