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As we previously reported here, the Department of Labor (DOL) and the Federal Acquisition Regulatory Council (FAR Council) issued the Final Rule and Final Guidance implementing President Obama’s Fair Pay and Safe Workplaces Executive Order (E.O. 13673), signed on July 31, 2014. Despite strenuous objections, including from groups representing defense contractors, on August 25, 2016, DOL and FAR Council finalized the rules (the “Fair Pay Regulations”) by which those who seek to contract with the government (contracts over $500,000) must disclose alleged and final wage and labor law “violations,” including non-final agency allegations of labor law violations and determinations subject to appeal. Certain portions of the Fair Pay Regulations take effect as early as October 25, 2016.
In Associated Builders and Contractors of Southeast Texas v. Fed. Acquisition Regulatory Council, Case No. 1:16-cv-00425, E.D. Tex. (filed Oct. 7, 2016), Associated Builders and Contractors of Southeast Texas (“ABC-Texas”), Associated Builders and Contractors, Inc. (“ABC”), and the National Association of Security Companies (”NASCO”) filed suit in federal district court against members of the DOL and FAR Council challenging E.O. 13673 and the Fair Pay Regulations. ABC and ABC-Texas represent nearly 21,000 member construction contractors and related firms in Texas and throughout the country. NASCO represents companies that employ more than 400,000 trained security officers.
Plaintiffs’ Complaint alleges six counts of legal violations:
Plaintiffs are seeking a preliminary injunction enjoining the government from implementing the Fair Pay Regulations, a declaratory judgment that the Regulations are invalid, and a final order vacating the Regulations and enjoining the government from implementing them. On October 13, 2016, Plaintiffs moved for a temporary restraining order and preliminary injunction against the government to immediately stop implementation of the Regulations.
A copy of the complaint is available here.