Fair Pay and Safe Workplaces (E.O. 13673)

Summary

Makes sure companies getting government money follow rules about worker pay, safety, and fairness to get and keep contracts.

What problem does this solve?

The government sometimes awarded contracts to companies with a history of breaking labor laws, which could harm workers and cause project delays. This order requires companies to prove they follow labor laws before they can receive a federal contract, promoting fair and safe work environments.

What does this order do?

Requires disclosure of labor law violations

Companies bidding for federal contracts over $500,000 must report any labor law violations from the previous three years.

Mandates paycheck transparency

Contractors must provide workers with a document each pay period showing their hours, overtime, pay, and any deductions.

Limits forced arbitration

For contracts over $1 million, contractors cannot force employees to settle sexual assault or harassment claims through arbitration without their consent after the dispute arises.

Creates Labor Compliance Advisors

Each federal agency must name a senior official as a Labor Compliance Advisor to help ensure contractors follow labor laws.

Holds contractors responsible for subcontractors

Primary contractors must require their subcontractors on projects over $500,000 to also disclose their labor law violation history.

Requires notice for independent contractors

If a contractor treats a worker as an independent contractor instead of an employee, they must provide a document informing the worker of their status.

Who does this affect?

Federal contractors and subcontractors
Employees of federal contractors
Federal government agencies

What is the real world impact?

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Improves government contracting efficiency

Aims to save money and reduce project delays by ensuring the government only works with responsible companies that have a history of following labor laws, leading to more reliable and higher-quality work.

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Strengthens protections for workers

Increases transparency by requiring clear pay stubs and preventing companies from forcing employees into arbitration for sexual assault or harassment claims, giving more power and protection to workers.

When does this start?

This order takes effect immediately on July 31, 2014, with specific rules for contracts to be created and applied later.