Wednesday, November 23, 2016

Federal Court Injunction Blocks Enforcement of “Fair Pay and Safe Workplace” Regulation

Texas federal judge Marcia Crone has issued a preliminary injunction blocking enforcement of the Obama administration’s labor regulation which would have required contractors, and eventually subcontractors, to publicly disclose alleged violations of 14 federal labor, safety, health and employment rules, and related state laws, before seeking federal contracts worth more than $500,000.00 after April 25, 2017. According to Judge Crone’s opinion “The public disclosure and disqualification requirements being imposed on federal contractors and subcontractors are nowhere found in or authorized by the statute on which [the rule and Labor Department guidance] relies.”

The lawsuit challenging the rule was brought by the Associated Builders and Contractors and the National Association of Security Companies, while the rule was supported by the Laborers International Union of North America.

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