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On March 27, 2017, President Donald Trump signed Congressional Review Act (CRA) resolution H.J. Res 37, disapproving the regulations implementing former President Barack Obama's Fair Pay and Safe Workplaces executive order. SHRM supported the CRA recognizing that the regulations would require employers to report actual and alleged violations of 14 different labor laws and their state equivalents. The government had planned to use this information to assess whether an employer should be allowed to compete for or keep federal contracts—despite the Federal Acquisition Regulation's (FAR's) existing procedures to evaluate and potentially debar noncompliant federal contractors.
On the same day, the president issued an executive order revoking the blacklisting executive order and instructing all federal agencies to rescind the regulations and guidance associated with blacklisting. The Fair Pay and Safe Workplaces order was also challenged in court and was temporarily enjoined except for the paycheck transparency portion of the order, which required employers to report to employees their hours worked, payroll deductions and how they were classified—as an employee or independent contractor. The president's March 17 actions ensure that all aspects of the order are now invalidated.
SHRM, its members, and members of the Advocacy Team were highly engaged on this issue, providing testimony; submitting regulatory comments; and meeting with elected officials to emphasize the reporting burdens, the barriers the executive order raised for employers seeking to become federal contractors and the unfairness of government contractors being subject to debarment as a result of nonfinal and alleged violations of labor law.
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