New rules: Federal contractors, subcontractors advised to track labor violations

asa logo

Effective immediately, federal contractors and subcontractors for construction, and other goods and services, with an estimated value over $500,000 will have to disclose labor law violations within the last three years with their offers or bids and every six months thereafter if they are awarded the contract or subcontract, American Subcontractors Association said in its weekly newsletter.

Executive Order 13,673, signed by President Obama on July 31, covers 14 federal statutes and equivalent state laws, including those addressing wage and hour, safety and health, family and medical leave, civil rights protections, and collective bargaining.

In addition to reporting requirements, the Executive Order establishes paycheck transparency rules, including requiring contractors to “provide all individuals performing work under the contract for whom they are required to maintain wage records … with information concerning that individual’s hours worked, overtime hours, pay, and any additions made to or deductions made from pay.”