As we reported yesterday, the FAR Council and U.S. Department of Labor have published final regulations and guidance implementing Executive Order 13673. In connection with the much awaited publication, the Department of Labor has created a detailed webpage with FAQs and other informative pages regarding implementation of the final rules.
A few of the highlights from the Final Rules include:
- Effective date for prime contractors is October 25, 2016
- However, for bids under $50 million, no disclosure is required for a 6 month period – until April 25, 2017
- Subcontractor reporting on hold for one year until October 25, 2017
- Reporting period will be phased in 1 year at a time into a 3 year look back by October 25, 2018
- Subcontractors are to report violations to DOL, not to primes, and must report back to primes on DOL findings
- Legal entity required to report its violations is that listed on the bid/offer or contract, not parent, subsidiaries. A division of a corporation would be required to make disclosures of the corporation
- Contractors are encouraged, though not required, to go to DOL for preassessment of their violations before bidding contracts
- Provides “due process” for contractor to receive notice of and respond to recommendation prior to final responsibility determination
- State law violations (except OSHA equivalents) requiring disclosure will be subject of a future rulemaking
- The definitions of “serious, willful, repeated, and/or pervasive violations” remain substantively unchanged
- Pay Transparency and prohibition on pre-dispute arbitration requirements are still in place.
For additional information check out our recent article and stay tuned for more depth analysis in the coming days.