“A new executive order from President Obama will make it harder for companies to win federal contracts if they violate their workers’ rights and withhold their wages, the White House announced Thursday. Under the new rules, companies that apply for federal contracts larger than half a million dollars will have to disclose any major labor law violations they or their subcontractors have committed in the previous three years. Agencies will prioritize companies with clean records over those that abuse their workers’ rights when weighing contract bids.”
“The Fair Pay and Safe Workplaces Executive Order will not kick in until 2016 and its provisions will only be applicable to new contracts, according to the White House fact sheet. But because the new scrutiny of labor law violations will apply to company performance over three years, the new rules serve to put contractors on notice that their treatment of workers today will affect their odds of winning their next contract.”
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