With its time in the White House winding down, the Obama administration plans to add yet another executive order to its list on Wednesday ― one that will bar companies from receiving federal contracts if they recently violated labor laws.
Known as the Fair Pay and Safe Workplaces executive order, the new regulation is meant to reward good actors and punish bad ones, encouraging employers to take the high road if they want government money. It’s part of the White House’s broader strategy, pushed by labor groups, to use federal contracting power in order to improve workplaces in the broader economy.
“This rule affirms the notion that contracting with the federal government is a privilege, not an entitlement,” said Labor Secretary Tom Perez. “The contractors who are doing the right thing should not have to compete for contracts with those who don’t.”