Description: The resolution blocks the Obama-era rule that requires federal contractors to disclose workplace violations—specifically violations of federal labor laws and executive orders that address wage and hour, safety and health, collective bargaining, family medical leave, and civil rights protections. The rule directs that such violations be considered when awarding federal contracts. In addition, the rule mandates that contractors provide each worker with written notice of basic information including wages, hours worked, overtime hours, and whether the worker is an independent contractor. Finally, the rule prohibits contractors from requiring workers to sign pre-dispute arbitration agreements for discrimination, harassment, or sexual assault claims.

Fair Economy Impact: Currently, there is no effective system to ensure that taxpayer dollars are not awarded to contractors who violate basic labor and employment laws. As a result, the federal government awards billions of dollars in contracts to companies that break the law. This rule would have helped ensure that federal contracts (and taxpayer dollars) are not awarded to companies with track records of labor and employment law violations. Workers, taxpayers, and law-abiding contractors would have benefited from this rule. Contractors with records of cutting corners by violating labor and employment laws will benefit from the congressional resolution blocking this rule.

Actions:

• President Trump signed into law on March 27, 2017.
• Senate passed (49–48) on March 6, 2017.
• House passed (236–187) on February 2, 2017.
• On February 1, the White House issued a Statement of Administration Policy indicating that the president would sign the resolution.