FEDERAL CONTRACTOR "BLACKLISTING" EXECUTIVE ORDER OVERTURNED BY CONGRESS

On March 6, 2017, Congress gave final approval to legislation invalidating President Obama’s Fair Pay and Safe Workplaces Executive Order, and various implementing rules.  This order has been commonly called the "blacklisting" order, as it would require federal contractors to report recent violations of labor and employment laws when bidding on new or renewed federal contracts.  It also would have required certain federal contractors to provide reports to employees on hours, paycheck deductions, and 1099 status.  In October, a federal judge in Texas had issued a temporary injunction preventing most of the Executive Order from ever being implemented.  Many employers have objected to the Executive Order on the grounds that it called for companies to report mere allegations that had not been fully adjudicated and as also being unnecessary and inconsistent with existing federal procurement procedures. 

This is only the second time that Congress has ever passed legislation under the Congressional Review Act invalidating federal regulations and/or executive orders.  There is great significance to such Congressional action since the Congressional Review Act provides that passage of such a law prevents any "substantially similar" rule from being issued in the future, unless Congress grants specific approval.