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April 4, 2017

President Trump Revokes the Contractor “Blacklisting Rule”

On March 27, 2017, President Trump signed a Congressional Joint Resolution of Disapproval and a related Executive Order to repeal the regulations implementing the Obama-era Fair Pay and Safe Workplaces Executive Order, better known as the “Blacklisting Rule.” Under the Blacklisting Rule, federal contractors were required to disclose to the federal government violations or allegations of violations of various federal labor and employment laws, including those pertaining to workplace safety, wages, and discrimination. Contractors would have been required to make those disclosures when bidding on federal contracts valued at more than $500,000, unless the business agreed to remedies. The Blacklisting Rule also imposed paycheck transparency obligations, created restrictions on mandating arbitration agreements for employees’ Title VII claims, and imposed independent contractor notification requirements. Many of the rule’s impositions had already been enjoined by a federal judge in October of 2016.

Takeaway for Employers

The demise of the Blacklisting Rule is welcome news to federal contractors that were particularly concerned that they would be forced to report mere allegations of labor and employment violations. Employers will no longer need to abide by the provisions of the Blacklisting Rule that were not already enjoined, and the Rule is officially repealed.

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If you have any questions regarding this Resolution, please do not hesitate to contact us.