Amendment to Executive Order 13673

Aug 26, 2016

Summary

Changes how companies working for the government report their history of following labor laws, sending the information to a new designated group.

What problem does this solve?

The old rule made subcontractors report labor law issues directly to the main contractor, which could be inefficient. This order directs subcontractors to report to a central government group, making the process simpler and more consistent.

What does this order do?

Redirects subcontractor reporting

Requires subcontractors to send information about labor law problems to a new group chosen by the government, instead of directly to the main contractor.

Alters what information main contractors use

Directs main contractors to use advice or information from the new government group when deciding whether to work with a subcontractor.

Who does this affect?

Federal contractors
Subcontractors on federal projects
Government procurement agencies

What is the real world impact?

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Streamlines reporting for government contractors

Changes the reporting process so that subcontractors send their labor law compliance information to a single government-chosen entity instead of to each main contractor. This makes the process more efficient.

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Increases government oversight of contractors

Centralizes the collection of labor law violation data from subcontractors. This allows the government to better track compliance across all federal projects instead of relying on main contractors to manage the information.

When does this start?

Becomes effective immediately on August 23, 2016, and applies to new contract requests.