HANDYMAN 
Handyman Insurance, Fair Pay and Safe Workplaces Executive Order
On July 31, 2014, President Obama signed Executive Order 13673. Subsequently, last year, the Department of Labor issued proposed guidance, and the Federal Acquisition Regulatory Counsel published proposed changes to the Federal Acquisition Regulations (“FAR”), implementing the order. Of all the Executive Orders signed by Obama during his tenure as president,Executive Order 13673 could be the most important for Federal government contractors. This is because it imposes substantial obligations on contractors.
Executive Order 13673 applies to any Federal government procurement contract where the estimated value of goods or services is over $500,000.00. To be eligible for any such contract, a Federal government contractor must, among other things, make certain disclosures concerning the violation(s) of labor laws by itself or its subcontractors.
More specifically, contractors must now self-report (at the time of bidding and periodically or on a semi-annual basis thereafter) any negative finding (including administrative merits determinations, arbitral awards or decisions, and civil judgments rendered against them) concerning non-compliance with certain laws (including violations of the National Labor Relations Act, the Fair Labor Standards Act, the Migrant and Seasonal Agricultural Worker Protection Act, the Service Contract Act, the Davis-Bacon Act, the Occupational Safety and Health Act, the Vietnam Era Veterans readjustment Assistance Act, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act, Section 503 of the Rehabilitation Act, Title VII of the Civil Rights Act, Executive Order 11246, Executive Order 13658, or any analogous state statutes or regulations) in the preceding three (3) years.
Federal contractors must also disclose similar information regarding its subcontractors. Specifically, the contractor must disclose if its subcontractors were found guilty of violating any of the above-named laws in the last three years, on contracts exceeding $500,000.00. The contractor has a further obligation to pass through these reporting requirements to the subcontractor itself. In other words, the prime contractor must require its subcontractors to independently self-report violations of the referenced statutes in the preceding three years and to update that disclosure every six months. Finally, the contractor is required to consider its subcontractors’ disclosed violations when determining whether it is appropriate to enter into a subcontract with that subcontractor.
On the government side, the Executive Order will require each agency to designate a “Labor Compliance Advisor.” That Labor Compliance Advisor will assist the agency’s contracting officers in determining if the reported violations should affect the contractor’s ability to receive the award. Specifically, they will determine whether the violations are “serious, repeated, willful or pervasive”. They will also analyze whether the disclosed violations have been sufficiently remedied, and whether the contractor remains a “responsible source that has a satisfactory record of integrity and business ethics.” The Labor Compliance Advisor can, in their discretion, refer a contractor to the applicable debarment authorities based on these conclusions.
The White House has stated that these new requirements were enacted with numerous goals in mind, including the following: to Hold Corporations Accountable; Crack Down on Repeat Violators; Promote Efficient Federal Contracting; Protect Responsible Contractors; Focus on Helping Companies Improve; Give Employees a Day in Court; Streamline Implementation and Overall Contractor Reporting. These are all admirable goals.
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