USDOL and FAR Council Issue Draft Fair Pay Policy.

Benefits Insights, Summer 2015

The US Department of Labor (USDOL) issued proposed guidance, along with the Federal Acquisition Regulatory (FAR) Council that issued a proposed regulation, to implement Executive Order (EO) 13673, titled Fair Pay and Safe Workplaces.

The Fair Pay EO is intended to improve government contractor compliance with workplace protection requirements such as the Service Contract Act, the Davis-Bacon Act, the Fair Labor Standards Act, Americans with Disabilities Act, the Family Medical Leave Act, as well as equivalent state laws.

President Barrack Obama signed the labor and employment-related EO on July 31, 2014. According to the White House, EO 13673 seeks to increase efficiency and savings for work performed by contractors with the Federal Government by ensuring that they understand and comply with labor laws.

The proposed USDOL guidance, the EO and FAR proposed rule are complex requirements requiring contractors to disclose labor violations, contracting agencies to assess these disclosures when evaluating a contractor’s record, and requiring USDOL to provide assistance to contractors to help them to comply.

To assist contracting agencies in evaluating contractor disclosures of violations a contracting officer will be assisted by the newly created agency labor compliance advisors (ALCA). Individuals in this new position will coordinate with contracting agencies, the USDOL and contractors to assess the severity of violations and provide assistance.

These requirements will apply to both prime and subcontractors necessitating significant recordkeeping. The changes will apply to all solicitations for federal contracts valued at more than $500,000. Even after award of a contract companies must report compliance semi-annually. This semi-annual reporting is meant to assist contracting agencies when deciding to award option periods.

Comments are due on the USDOL guidance and the FAR proposed regulation by July 27, 2015. Copies can be found at http://www.dol.gov/asp/fairpay/2015-12562.pdf and http://www.dol.gov/asp/fairpay/2015-12560.pdf.

USDOL and FAR Council Issue Draft Fair Pay Policy