What This Means for Employers:

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On March 27, 2017, President Trump signed a congressional resolution blocking implementation of the controversial “blacklisting rule” applicable to government contractors.

In 2014, President Obama issued Executive Order 13673, entitled “Fair Pay and Safe Workplaces” but known as the “blacklisting rule,” which required prospective contractors to disclose a wide range of so-called “labor law violations,” comply with certain notice requirements about employee pay, and refrain from utilizing mandatory pre-dispute arbitration provisions as to sexual assault and civil rights claims. The Department of Labor issued regulations implementing the EO in 2016; however, the disclosure and arbitration provisions of the rule were enjoined by a federal court shortly thereafter. We previously discussed the rule and the injunction.

With this resolution, the entire rule has now been nullified. Also on March 27, as an added precautionary step, President Trump signed an Executive Order revoking EO 13673.