Federal Judge Issues Nationwide Preliminary Injunction Against the Fair Pay and Safe Workplaces Rule and DOL Guidance.

By: jeff on 10/26/2016

On Monday, October 24, 2016, a federal judge out of the Eastern District of Texas, issued a nationwide preliminary injunction against part of the Fair Pay and Safe Workplaces Rule (Rule). The Rule, stemming from an Executive Order in 2014 was enacted into the Federal Acquisition Regulations (FAR) with accompanying Department of Labor (DOL) guidance (Guidance). (Please note the Rule’s paycheck transparency requirements are still in place.) Specifically, Judge Marcia Crone enjoined the implementation of the Rule and the DOL Guidance “that impose[s] new reporting requirements regarding labor law violations . . . on government contractors and subcontractors.” Decision at 2.

The Rule was slated to take effect on October 25, 2016. For the first 6 months following the implementation of the Rule, prime contractors would be compelled to make [potential or alleged] labor law violation disclosures on solicitations (and resulting contracts) with an estimated value of $50 million or more. Then, starting on April 25, 2017, the prime contractor disclosure requirements would apply to all solicitations (and resulting contracts) with an estimated value of $500,000 or more. Starting on October 25, 2017, subcontractor disclosures would be required for any solicitation (or resulting contracts) valued at $500,000 or more. On January 1, 2017, the paycheck transparency clause will be included in solicitations for contracts over $500,000. Only the paycheck transparency requirement now remains.

Full detailed summary below
Fair Pay and Safe Workplace Act Inunction