Blacklisting Exec Order to Impose Substantial Costs on Contractors

Employment Law

The Fair Pay & Safe Workplaces (a.k.a. "Blacklisting") executive order would impose total costs on federal contractors well in excess of $100 million, according to a preliminary analysis recently submitted to the administration by HR Policy Association and other business groups.  The proposed rule and guidance to implement the executive order (EO) are currently under review at the Office of Information and Regulatory Affairs (OIRA), and it is clear the agency is under considerable pressure to publish both soon.  At a recent meeting with OIRA, the Association and a number of member companies emphasized the data collection and reporting burden the EO imposes on federal contractors as well as the impact it will have on the wider federal procurement system.  Among other considerations, the Administration is statutorily obligated to conduct a thorough Regulatory Impact Analysis, including an assessment of benefits, costs, and potentially effective and reasonably feasible alternatives, for all rules with "an annual effect on the economy of $100 million or more."  To our knowledge, no such analysis has yet taken place and, based on preliminary discussions with our member companies, actual costs are likely to dwarf the $100 million threshold.