Executive Order: Companies bidding on federal contracts must disclose labor law violations

Washington – Employers bidding on large federal contracts must disclose recent violations of labor laws, according to requirements outlined in a new Executive Order.

President Barack Obama signed the order July 31, stating that U.S. tax dollars “shouldn’t go to companies that violate workplace laws.”

Any employers seeking a federal contract with an estimated value exceeding $500,000 must disclose violations cited by any Department of Labor agency – including OSHA – in the previous three years, according to the order.

Federal agencies will appoint advisors to assist contracting officers. Companies that repeatedly violate workers’ rights and put them in harm’s way will not receive contracts, the White House said.

The Executive Order also helps employers with clean records by ensuring they do not have to compete against contractors offering low bids based on savings from avoiding compliance with the law, according to the White House. In addition, contractors with violations will receive early guidance on remedying any problems before a contract is awarded.