Executive Order (E.O.) 13673, President Obama’s Fair Pay and Safe Workplaces Executive Order, and its implementing regulations — more commonly referred to as the “blacklisting” rules — are set to go into effect for some federal contracts beginning on October 25, 2016. Given the additional burden that the rules impose on covered federal contractors, many employers are looking for clarification regarding the rules’ scope of coverage.
Generally speaking, the E.O. applies only to procurement contracts meeting minimum dollar thresholds. The preamble to the implementing regulations also clarifies that the rules apply only to the “legal entity whose name and address is entered on the bid/offer and that will be legally responsible for performance of the contract.” In other words, a company bidding on a covered contract would not be required to disclose violations of a parent, subsidiary, or other related company that is a separate “legal entity.” (The final regulations also include a provision related to joint ventures. If the joint venture is not itself a separate legal entity, then each participant in the joint venture must separately comply.)
Coverage issues under the E.O. and implementing regulations and guidance may be complex. This memorandum provides a general overview of coverage under the blacklisting rules.
Members of the Equal Employment Advisory Council (EEAC) can read more here.