As anticipated, the first lawsuit challenging the legality of the Fair Pay & Safe Workplaces executive order and final rules is now on the books. Filed by the Associated Builders and Contractors, a construction trade group, and the National Association of Security Companies, the complaint contains six counts which allege the Obama administration, the FAR Council and the U.S. Department of Labor exceeded their authority as well as violated the due process clause and federal arbitration act with issuance of the executive order and implementing rules .

The regulations and guidance implementing the executive order go into effect in less than a month, on October 25, 2016, and will impose significant information gathering and reporting obligations on covered contractors, as well as prohibitions on pre-dispute arbitration agreements and requirements involving disclosure of pay information.

The suit seeks an injunction preventing implementation of the regulations and guidance recently finalized by the FAR Council and U.S. Department of Labor.