Congress Moves to Rescind ‘Blacklisting’ Regulations for Federal Contractors

By Patrick Brady Feb 10, 2017
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​Last week, the U.S. House of Representatives passed on a bipartisan basis H.J. Res. 37, a SHRM-supported resolution to block the Fair Pay and Safe Workplaces executive order, by a vote of 236-187.

The order is often referred to as the "blacklisting" regulations because of concerns that the government will use these regulations to prohibit employers from doing business with the U.S. government due to actual or alleged labor law violations. The main provisions of the regulation requires certain federal contractors to report violations of 14 different federal labor and employment laws, and the equivalent state laws, in order to compete for federal contracts.

Throughout the rulemaking process, SHRM voiced concerns that the blacklisting regulations unnecessarily and unfairly duplicate existing safeguards in the federal contracting process and that they could prevent a significant number of employers from competing for federal contracts.

In the 114th Congress, SHRM played a lead role in the industry Blacklisting Coalition by conducting numerous Capitol Hill visits, activating the SHRM Advocacy Team ("A-Team") to oppose similarly themed amendments in Congress, and explaining the impact on HR before the House Small Business Committee through congressional testimony from a SHRM A-Team member witness.

The Senate is expected to consider a resolution similar to H.J. Res. 37 soon. Senate passage is expected because this is considered a "privileged resolution," which requires only a simple majority (51 votes) for passage. President Donald J. Trump is expected to sign this resolution into law.

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