Late Monday evening, just before the FAR Final Rule and DOL Guidance on the Fair Pay and Safe Workplaces Executive Order (FPSWP) were set to take effect, a federal district judge in Texas enjoined the implementation of the government contractor reporting requirements and arbitration agreement restrictions set forth in the FPSWP. The preliminary injunction does not bar implementation of the paycheck transparency requirements under the FPSWP.

The underlying case in which the injunction was ordered, involves a challenge to the FPSWP final rule and guidance by contractor groups, including the Associated Builders and Contractors of Southeast Texas, the Associated Builders and Contractors, Inc., and the National Association of Security Companies. The final rule and guidance required the inclusion of FPSWP provisions in covered solicitations starting today, October 25.

In response to court’s order, we expect the federal government will temporarily suspend implementation of the final rule and guidance, and appeal the injunction. In the meantime, we recommend that contractors continue their efforts to identify potential compliance risks under the FPSWP. In the event the injunction is overturned, contractors may be required to resume compliance with the final rule and guidance promptly.

We are in the process of further evaluating the court’s order and the implications for government contractors subject to the requirements of the FPSWP. We will follow up with additional analysis and guidance in a future alert.

For additional information on the FPSWP Executive Order and Final FAR and DOL Guidance, please see our previous alerts and blog posts: