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By: Marty Heller
A federal judge in Texas recently granted an injunction against parts of the Fair Pay and Safe Workplaces Executive Order. Essentially, the injunction will block enforcement of the Executive Order’s requirements that federal contractors disclose current and previous labor and employment law violations and suits, as well as its prohibition on the use of pre-dispute arbitration agreements. The ruling does not have any effect on the paycheck fairness portion of the rule, which requires that federal contractors include information regarding overtime pay and exempt status on each paycheck and to provide independent contractors with a notice that they are being treated as an independent contractor. These portions of the Executive Order still go into effect on all contract solicitations or contract amendments made on or after January 1, 2017.
At this point, it is unclear whether the injunction will remain in place permanently throughout the underlying litigation. It is also possible that the regulations implementing the Executive Order may be re-written to attempt to avoid the effect of the injunction. We will continue to follow this litigation and will blog on any updates.