On October 24, the U.S. District Court in the Eastern District of Texas granted a request for preliminary injunction against parts of the Obama Administration’s implementation of the Fair Pay and Safe Workplaces, or “Blacklisting” as it is known, Executive Order. As a result direct federal contractors will not—at this time—be required to report labor law violations with their bids on federal contract solicitations and awards.
In addition, the court halted the federal government from enforcing the order’s requirement regarding contractor arbitration agreements with employees covering disputes arising out of sexual assault or harassment disputes, among other things. The court, however, does not bar implementation of the order’s paycheck transparency requirement scheduled to take effect on January 1, 2017.
The Obama Administration will very likely take steps to counter this court order. The situation, therefore, remains fluid. It is unclear how long implementation of this Executive Order and its various requirements will be delayed. The court order certainly delays implementation of the labor law violation reporting for solicitations on contracts exceeding $50 million issued on or after October 25 and the arbitration agreement requirement also scheduled to take effect October 25. Nevertheless, it remains undetermined how or if this court order will impact other implementation deadlines. To review when those deadlines as currently scheduled, see AGC’s comprehensive review of the EO here.
AGC and other business groups are currently determining how best to proceed, including whether to file another case separately and/or bolster the current legal effort. Ultimately, AGC’s goal remains not only temporary relief, but the complete dismantling of this unconstitutional executive order and its unnecessary regulatory regime.