Remarks by the President at HUD

Department of Housing and Urban Development
Washington, D.C.3

:50 P.M. EDT
 
THE PRESIDENT:  Thank you.  (Applause.)  Now, let me start off by making two points.  The first is, clearly, HUD has the rowdiest employees.  (Applause.)  I now realize that.  The second point is that before I came out here, Shaun Donovan made a point of saying that this wasn’t as exciting to people as Michelle coming.  (Laughter.)  Now, I know that.  (Laughter.)  I hear that everywhere I go.  (Laughter.)  There’s no reason to remind me, to rub it in.  (Laughter.)  That's why I married her.  (Laughter and applause.)  To improve the gene pool.

I am here today because I stole one terrific Secretary of HUD from you, but I've delivered another terrific Secretary of HUD to you.  (Applause.)  And I want to thank all of you for the great job that you're doing day in and day out.  And we appreciate the members of Congress who are here -- although I have to say that Joaquin never had a choice.  (Laughter.)  The other two, obviously they care.  (Laughter.)  The brother, he’s like, okay, I've got to show up.  (Laughter.)  But I appreciate them being here.   
 
Let me just say a few words about Shaun.  From his first day when he got here, Shaun knew he had his work cut out for him.  You will recall that the housing market was the epicenter of the crisis that went through in 2008-2009.  There were millions of families whose homes were underwater.  Hundreds of thousands of construction workers were out of a job.  Too many veterans lived out on the street. 
 
But we were very fortunate because Shaun is just one of those people where he sees a problem he’s going to work to solve it.  And if what he tries the first time doesn’t work he's going to try something else.  And he’s a geek, he’s a wonk.  (Laughter.)  He studies the spreadsheets.  He recruited top talent.  He promised that if everyone here at HUD worked just a little bit harder, you could really turn things around for struggling families.  And all of you accepted that challenge. 
 
We’ve still got work to do, but think about the progress that we've made.  Home prices, home sales, construction all up.  Veterans homelessness down by nearly 25 percent.  (Applause.)    Millions of families are now seeing their home values above water, which obviously is a huge relief for them.  When natural disasters strike, like the Colorado floods or Hurricane Sandy, you are right in there helping the families rebuild.
 
And a lot of that is thanks to Shaun; a lot of it is thanks to the fact that all of you under his leadership took up the challenge, and you remembered what it is that this agency is about.
 
I love the way that your new Secretary characterized it.  This is -- this should be a department of opportunity.  And housing, for so many people, is symbolic of the American Dream.  It means that you’ve got something stable, something you can count on, something that you own.  And to watch the transformation that has happened around the country, first and foremost because of the resiliency of the American people and their hard work, but also because that every step of the way you were in there trying to help them -- that really makes a difference.
 
So I could not be prouder of the work that Shaun did.  But I can tell you that nobody is more passionate about these issues than Julián.  He knows the difference between smart policy and investments that can make a difference and just talk.  And he's all about action, not just talk. 
 
He’s seen it firsthand in how he grew up.  He’s seen it firsthand, as a mayor.  He revitalized parts of San Antonio that had been neglected for a long time.  He helped the Eastside Promise Zone take root and to grow.  He championed the kind of investments that keep communities strong over the long term -- like economic development and expanded early childhood education. And most of all, he knows how to lead a team.  And this is a big team and you guys have gotten some big things done.  But we've got a lot more to do.  Even bigger things need to get done.  
 
So in talking to Julián and initially trying to persuade him to take this task, what I saw was that spirt of hard work that's reflected in how he was brought up and the values that were instilled in him.  And he, every single day, wants to make sure that those values live out in the work that he does. 
 
And I know everybody in this room, you’ve got a story to tell, too, about somebody who, along the way, gave you some opportunity; about somebody who -- maybe you were, like me, raised by a single mom and -- like that first apartment that really -- had your own bedroom and it was clean.  (Laughter.)  And it was in a decent neighborhood and there was a decent school district.  And how happy everybody was, and the transformation that could take place in people’s lives.  That's a story I want you to tap into every day that you come to work.
 
Sometimes work in Washington can be discouraging.  Sometimes it seems as if the agenda that you're trying to pursue helping working families and middle-class families -- sometimes it seems that's not the priorities up on Capitol Hill.  But if you remember why you got into this work in the first place, if you remember that this is not just a job but it should also be a passion -- (applause) -- that it should also be part of giving back, that you shouldn’t just be checking in and punching the clock, but every single day there’s somebody out there who could use your help -- and I know when they get that help -- and they write letters to me and they’ll tell me, you know what, you transformed my life -- there’s no better feeling on Earth than that feeling that you somehow played a small part in a family succeeding.  (Applause.) 
 
And that success then last generations, because some child or grandchild suddenly is feeling better and they start doing better in school, and maybe they avoided getting into trouble and ending up in the criminal justice system, or dropping out of school and not being able to find a job -- all because of what you did.  What an incredible privilege that is.  What an incredible honor.
 
And that’s the attitude I want you to have every single day that you’re here.  I tell folks, I’ve now been President for more than five and a half years, and I’ve got two and a half years left, and I want to squeeze every single day -- I want to squeeze as much out of every single day.  (Applause.)  This is not just a job, this is a privilege that we have.  And we’ve got to do -- we’ve got to take advantage of it.  We’ve got to seize it.  Because that’s what makes it worthwhile.
 
It’s something that when I travel around the country I try to describe because people are so inundated with cynicism and bad news, and I want to tell them a story of good news.  There are people in agencies like HUD, every single day they care about you, and they want to help you.  And big organizations are never going to be perfect, and there are always going to be some bureaucracies, there’s always going to be some red tape, there’s always going to be some things that don’t work quite as smoothly as we want.  And your job is to fix that stuff, or work around that stuff. 
 
And I want everybody here to -- when you’re working with this new Secretary, who’s got energy and drive, he’s young, he’s good-looking, he talks good -- (applause) -- you can’t let him down.  (Laughter.)  You’ve got to be open to try new things and doing things in a different way, and doing them better.  But more importantly, you can’t let those families out there down, because they’re counting on you. 
 
So I’m eager to work with him, but more importantly, I’m eager to work with you.  And every single day when you come to work, I just want you to know that I can’t do my job unless you’re doing your job.  Julian can’t do his job unless you’re doing your job.  And whether you are managing a financing program to build low-income or affordable housing, or you are helping with some of our initiatives like Promise Zones, or you are coordinating with regional offices -- whatever your task, whether you are upper management or you’re the new kid on the block who’s coming in, you can really have an impact that lasts for generations.
 
Don’t squander that.  Don’t succumb to the cynicism.  Don’t start thinking that this is just a job.  Remember the mission that you’ve got.  And if you do that, I guarantee you, under Julian’s leadership, years from now you’re going to be able to look back and really be proud of everything that you’ve accomplished, because there are going to be a whole lot of people’s lives who are a lot better.
 
Thank you, everybody.  God bless you.  (Applause.) 
   
END  
3:57 P.M. EDT

Remarks by the President at the Signing of Fair Pay and Safe Workplace Executive Order

South Court Auditorium

1:40 P.M. EDT

THE PRESIDENT:  Hello, everybody, hello!  (Applause.)  Thank you so much.  Everybody, please have a seat.  Welcome to the White House. 

The executive order I’ll sign in a few minutes is one that’s good for workers, it's good for responsible employers, and it's good for the middle class.  That explains the folks who are standing up on stage with me, including Secretary of Labor Tom Perez, who’s done a great job on this.  (Applause.)  

Yesterday, we learned that the springtime was a strong time for economic growth.  Companies are investing.  Consumers are spending.  Our energy, our technology, our auto industries are all booming, with workers making and selling goods all around the world.  Our businesses have created nearly 10 million new jobs over the past 52 months, and the unemployment rate is at its lowest point since 2008.  401(k)s have recovered their value.  Home prices are rising.  Millions more families have the peace of mind that comes with having affordable, quality health care.

And because of the incredible hard work and resilience of the American people, we’ve recovered faster, we've come farther than any other advanced country since the onset of the Great Recession.  (Applause.)  Things are getting better.  Steadily, things are getting better.  But we all know there’s more work to do.  And the decisions we make now are going to have an impact on whether or not this economy works for everybody or just folks at the top; whether we've got a growing economy that fuels rising incomes and creates a thriving middle class and ladders into the middle class.

That’s what’s at stake -- making sure our economy works for every hardworking American, and if you work hard and you're responsible, you can get ahead.  That's what we want.  We want to make sure the young dad on the factory floor has a shot to make it into the corner suite -- or at least see his daughter make it there some day.

That’s why I ran for office.  That’s what has driven every policy that we've initiated this year and since the advent of my presidency.  Policies that create more jobs rebuilding America.  Policies to ease the student loan burden.  Policies to raise wages for workers, and make sure that women are being paid fairly on the job, and creating opportunities for paid leave for working families, and support for child care. 

These are all policies that have two things in common.  Number one, they’d all help working families.  And, frankly, number two, they’re being blocked or ignored by Republicans in Congress.  So I’ve said to my team, look, any time Congress wants to do work with me to help working families, I'm right there.  The door is always open.  More than that, I'll go to them; I'll wash their car -- (laughter) -- walk their dog.  (Laughter.)  I mean, I'm ready to work with them any time that they want to pursue policies that help working families.  But where they’re doing so little or nothing at all to help working families, then we've got to find ways, as an administration, to take action that's going to help. 

And so far this year, we’ve made sure that more women have the protection they need to fight for fair pay in the workplace  -- because I believe when women succeed, America succeeds.  (Applause.)  We’ve acted to give millions of Americans the chance to cap their student loan payments at 10 percent of their income. I don’t want young people to be so saddled with debt that they can't get started in life.  (Applause.) 

We’ve acted on our own to make sure federal contractors can’t discriminate based on sexual orientation or gender identity -- because you shouldn’t be fired because of who you love.  (Applause.)  If you’re doing the job, you should be treated fairly and judged on your own merits.  (Applause.)

We acted to require federal contractors to pay their workers a fair wage of $10.10 an hour.  (Applause.)  And we’ve gone out and we’ve worked with states and cities and business owners to join us on our $10.10 campaign, and more and more are joining us -- because folks agree that if you work full-time in this country, you shouldn’t be raising your family in poverty.  That’s a pretty simple principle that we all believe in.  (Applause.) 

So the American people are doing their job.  I’ve been traveling around the country meeting them.  They’re working hard. They’re meeting their responsibilities.  Here in the executive branch, we’re doing our job, trying to find ways in which we can help working families.  Think about how much further along we’d be if Congress would do its job. 

Instead, the big event last night -- it wasn’t the vote on the minimum wage.  (Laughter.)  It wasn’t a vote on immigration reform, strengthening the borders.  It wasn’t a vote on family leave.  What did they have a vote on?  (Laughter.)  They got together in the House of Representatives, the Republicans, and voted to sue me for taking the actions that we are doing to help families.  (Laughter.)

One of the main objections that’s the basis of this suit is us making a temporary modification to the health care law that they said needed to be modified.  (Laughter.)  So they criticized a provision; we modify it to make it easier for business to transition; and that’s the basis for their suit.  Now, you could say that, all right, this is a harmless political stunt -- except it wastes America’s time.  You guys are all paying for it as taxpayers.  It’s not very productive.  But it’s not going to stop me from doing what I think needs to be done in order to help families all across this country.  (Applause.)

So we’ve got too much work to do.  (Applause.)  And I said to Speaker Boehner, tell your caucus the best way to avoid me acting on my own is work with me to actually do something.  Then you don’t have to worry about it.  We’re not going to stop, and if they’re not going to lift a finger to help working Americans then I’m going to work twice as hard to help working Americans.  (Applause.)  They can join me if they want.  I hope they do.  But at least they should stop standing in the way of America’s success.   We’ve got too much to do. (Applause.)  

So, today, I’m taking another action, one that protects workers and taxpayers alike.  Every year, our government signs contracts with private companies for everything from fighter jets to flapjacks, computers to pencils.  And we expect our tax dollars to be spent wisely on these contracts; to get what we pay for on-time, on budget.  And when companies that receive federal contracts employ about 28 million Americans –- about one in five workers in America work for a company that has a federal contract -– we also expect that our tax dollars are being used to ensure that these jobs are good jobs. 

Our tax dollars shouldn’t go to companies that violate workplace laws.  (Applause.)  They shouldn’t go to companies that violate worker rights.  (Applause.)  If a company is going to receive taxpayer money, it should have safe workplaces.  (Applause.)  It should pay its workers the wages they’ve earned. It should provide the medical leave workers are entitled to.  It should not discriminate against workers.  (Applause.)

But one study found that more than one in four companies that have poor records on these areas also still get contracts from the federal government.  And another study found that the worst violators are also the ones who end up missing performance or cost or schedule targets –- or even overbilled the government, ripping off the taxpayers altogether -- which makes sense.  I mean, if you think about it, if you got a company that isn’t treating its workers with integrity, isn’t taking safety measures seriously, isn’t taking overtime laws seriously, then they're probably cutting corners in other areas, too.

  And I want to be clear, the vast majority of the companies that contract with our government, they play by the rules.  They live up to the right workplace standards.  But some don’t.  And I don't want those who don't to be getting a contract and getting a competitive advantage over the folks who are doing the right thing, right?  That's not fair.  (Applause.)

Because the ones that don't play by the rules, they're not just failing their workers, they’re failing all of us.  It’s a bad deal for taxpayers when we’ve got to pay for poor performance or sloppy work.  Responsible companies that follow the law are likelier to have workers and workplaces that provide a better return for our tax dollar.  They should not have to compete on an unfair playing field with companies that undercut them by breaking the law.  In a race to the bottom, nobody wins.  (Applause.)

So over the past few years, my administration has taken steps to make the contracting process smarter.  But many of the people who award contracts don’t always have the information that they need to make sure contracts go to responsible companies.  So the executive order I’m signing today is going to do a few things. 

Number one, it will hold corporations accountable by requiring potential contractors to disclose labor law violations from the past three years before they can receive a contract.  It’s going to crack down on the worst violators by giving agencies better tools to evaluate egregious or repeated offenses.
It will give workers better and clearer information on their paychecks, so they can be sure they’re getting paid what they’re owed.  It will give more workers who may have been sexually assaulted or had their civil rights violated their day in court. 
It will ease compliance burdens for business owners around the country by streamlining all types of reporting requirements across the federal government.  So this is a first step in a series of actions to make it easier for companies, including small businesses, to do business with the government.   So we’re going to protect responsible companies that play by the rules -- make it easier for them, try to reduce the paperwork, the burdens that they have.  They’ll basically check a box that says they don’t have these violations.  We want to make it easier for good corporate citizens to do business with us.  (Applause.) 

And, by the way, for companies that have violations, our emphasis is not going to be on punishments.  It is to give them a chance to follow good workplace practices and come into compliance with the law.  If you want to do business with the United States of America, you’ve got to respect our workers, you’ve got to respect our taxpayers. 

And we’ll spend a lot of time working with and listening to business owners, so we can implement this thoughtfully and make it manageable for everybody.  But the goal here is to make sure this action raises standards across the economy; encourages contractors to adopt better practices for all their employees, not just those working on federal contracts; give responsible businesses that play by the rules a fairer shot to compete for business; streamline the process; improve wages and working conditions for folks who work hard every single day to provide for their families and contribute to our country. 

And even though it is an executive action, I want to acknowledge and thank the members of Congress who support it and who always stand up for America’s workers.  And most of them are stuck at Capitol Hill, but I just want to mention their names anyway -- Tom Harkin; Rosa DeLauro; Keith Ellison is here; Raul Grijalva; Eleanor Holmes Norton.  They’ve all been working on these issues, so I want to thank those members of Congress.  (Applause.)

The executive order I sign today, like all the other actions I’ve taken, are not going to fix everything immediately.  If I had the power to raise the federal minimum wage on my own, or enact fair pay and paid leave for every worker on my own, or make college more affordable on my own, I would have done so already. If I could do all that, I would have gotten everything done in like my first two years.  (Laughter.)  Because these policies make sense.  But even though I can’t do all of it, that shouldn’t stop us from doing what we can.  That’s what these policies will do.

And I’m going to keep on trying, not just working with Democrats, but also reach out to Republicans to get things moving faster for the middle class.  We can do a lot more.  We need a Congress that’s willing to get things done.  We don’t have that right now.  In the meantime, I’m going to do whatever I can, wherever I can, whenever I can, to keep this country’s promise alive for more and more of the American people.

So, thank you all.  We’re going to just keep on at this thing, chipping away.  And I’m confident that when we look back, we’ll see that these kinds of executive actions build some of the momentum and give people the confidence and the hope that ultimately leads to broad-based changes that we need to make sure that this economy works for everybody.

Thank you so much.  I’m going to sign this executive order.  (Applause.)

END
2:00 P.M. EDT

Executive Order --Fair Pay and Safe Workplaces

EXECUTIVE ORDER
 
- - - - - - -
 
FAIR PAY AND SAFE WORKPLACES

By the authority vested in me as President by the Constitution and the laws of the United States of America, including 40 U.S.C. 121, and in order to promote economy and efficiency in procurement by contracting with responsible sources who comply with labor laws, it is hereby ordered as follows:

Section 1.  Policy.  This order seeks to increase efficiency and cost savings in the work performed by parties who contract with the Federal Government by ensuring that they understand and comply with labor laws.  Labor laws are designed to promote safe, healthy, fair, and effective workplaces.  Contractors that consistently adhere to labor laws are more likely to have workplace practices that enhance productivity and increase the likelihood of timely, predictable, and satisfactory delivery of goods and services to the Federal Government.  Helping executive departments and agencies (agencies) to identify and work with contractors with track records of compliance will reduce execution delays and avoid distractions and complications that arise from contracting with contractors with track records of noncompliance.

Sec. 2.  Compliance with Labor Laws.  (a)  Pre-award Actions.  (i)  For procurement contracts for goods and services, including construction, where the estimated value of the supplies acquired and services required exceeds $500,000, each agency shall ensure that provisions in solicitations require that the offeror represent, to the best of the offeror's knowledge and belief, whether there has been any administrative merits determination, arbitral award or decision, or civil judgment, as defined in guidance issued by the Department of Labor, rendered against the offeror within the preceding 3-year period for violations of any of the following labor laws and
Executive Orders (labor laws):
 
(A) the Fair Labor Standards Act;
 
(B) the Occupational Safety and Health Act of
1970;
 
(C) the Migrant and Seasonal Agricultural Worker
Protection Act;
 
(D) the National Labor Relations Act;
 
(E) 40 U.S.C. chapter 31, subchapter IV, also known as the Davis-Bacon Act;
  
(F) 41 U.S.C. chapter 67, also known as the Service Contract Act;
 
(G) Executive Order 11246 of September 24, 1965
(Equal Employment Opportunity);
 
(H) section 503 of the Rehabilitation Act of
1973;
 
(I) 38 U.S.C. 3696, 3698, 3699, 4214, 4301-4306, also known as the Vietnam Era Veterans' Readjustment Assistance Act of 1974;
 
(J) the Family and Medical Leave Act;
 
(K) title VII of the Civil Rights Act of 1964; 
(L) the Americans with Disabilities Act of 1990;  
(M) the Age Discrimination in Employment Act of
1967;
 
(N) Executive Order 13658 of February 12, 2014
(Establishing a Minimum Wage for Contractors); or
 
(O) equivalent State laws, as defined in guidance issued by the Department of Labor. 

(ii) A contracting officer, prior to making an award, shall, as part of the responsibility determination, provide an offeror with a disclosure pursuant to section 2(a)(i) of this order an opportunity to disclose any steps taken to correct the violations of or improve compliance with the labor laws listed in paragraph (i) of this subsection, including any agreements entered into with an enforcement agency.  The agency's Labor Compliance Advisor, as defined in section 3 of this order, in consultation with relevant enforcement agencies, shall advise the contracting officer whether agreements are in place or are otherwise needed to address appropriate remedial measures, compliance assistance, steps to resolve issues to avoid further violations, or other related matters.
 
(iii) In consultation with the agency's Labor Compliance Advisor, contracting officers shall consider the information provided pursuant to paragraphs (i) and (ii) of this subsection in determining whether an offeror is a responsible source that has a satisfactory record of integrity and business ethics, after reviewing the guidelines set forth by the Department of Labor and consistent with any final rules issued by the Federal Acquisition Regulatory (FAR) Council pursuant to section 4 of this order.
 
(iv) For any subcontract where the estimated value of the supplies acquired and services required exceeds $500,000 and that is not for commercially available off-the-shelf items, a contracting officer shall require that, at the time of execution of the contract, a contractor represents to the contracting agency that the contractor:
 
(A) will require each subcontractor to disclose any administrative merits determination, arbitral award or decision, or civil judgment rendered against the subcontractor within the preceding 3-year period for violations of any of the requirements of the labor laws listed in paragraph (i) of this subsection, and update the information every 6 months; and
 
(B) before awarding a subcontract, will consider the information submitted by the subcontractor pursuant to subparagraph (A) of this paragraph in determining whether a subcontractor is a responsible source that has a satisfactory record of integrity and business ethics, except for subcontracts that are awarded or become effective within 5 days of contract execution, in which case the information may be reviewed within
30 days of subcontract award.
 
(v) A contracting officer shall require that a contractor incorporate into subcontracts covered by paragraph (iv) of this subsection a requirement that the subcontractor disclose to the contractor any administrative merits determination, arbitral award or decision, or civil judgment rendered against the subcontractor within the preceding 3-year period for violations of any of the requirements of the labor laws listed in paragraph (i) of this subsection.
 
(vi) A contracting officer, Labor Compliance Advisor, and the Department of Labor (or other relevant enforcement agency) shall be available, as appropriate, for consultation with a contractor to assist in evaluating the information on labor compliance submitted by a subcontractor pursuant to paragraph (v) of this subsection.
 
(vii) As appropriate, contracting officers in consultation with the Labor Compliance Advisor shall refer matters related to information provided pursuant to paragraphs (i) and (iv) of this subsection to the agency suspending and debarring official in accordance with agency procedures.
 
(b)  Post-award Actions.  (i)  During the performance of the contract, each agency shall require that every 6 months contractors subject to this order update the information provided pursuant to subsection (a)(i) of this section and obtain the information required pursuant to subsection (a)(v) of this section for covered subcontracts.
 
(ii) If information regarding violations of labor laws is brought to the attention of a contracting officer pursuant to paragraph (i) of this subsection, or similar information is obtained through other sources, a contracting officer shall consider whether action is necessary in consultation with the agency's Labor Compliance Advisor.  Such action may include 
agreements requiring appropriate remedial measures, compliance assistance, and resolving issues to avoid further violations, as well as remedies such as decisions not to exercise an option on a contract, contract termination, or referral to the agency suspending and debarring official.
 
(iii) A contracting officer shall require that if information regarding violations of labor laws by a contractor's subcontractor is brought to the attention of the contractor pursuant to subsections (a)(iv), (v) or (b)(i) of this section or similar information is obtained through other sources, then the contractor shall consider whether action is necessary.  A contracting officer, Labor Compliance Advisor, and the Department of Labor shall be available for consultation with a contractor regarding appropriate steps it should consider.  Such action may include appropriate remedial measures, compliance assistance, and resolving issues to avoid further violations.
 
(iv) The Department of Labor shall, as appropriate,
inform contracting agencies of its investigations of contractors and subcontractors on current Federal contracts so that the agency can help the contractor determine the best means to address any issues, including compliance assistance and resolving issues to avoid or prevent violations.
 
(v) As appropriate, contracting officers in consultation with the Labor Compliance Advisor shall send information provided pursuant to paragraphs (i)-(iii) of this subsection to the agency suspending and debarring official in accordance with agency procedures.
 
Sec. 3.  Labor Compliance Advisors.  Each agency shall designate a senior agency official to be a Labor Compliance
Advisor, who shall:
 
(a) meet quarterly with the Deputy Secretary, Deputy Administrator, or equivalent agency official with regard to matters covered by this order;
 
(b) work with the acquisition workforce, agency officials, and agency contractors to promote greater awareness and understanding of labor law requirements, including recordkeeping, reporting, and notice requirements, as well as best practices for obtaining compliance with these requirements;
 
(c) coordinate assistance for agency contractors seeking help in addressing and preventing labor violations;
 
(d) in consultation with the Department of Labor or other relevant enforcement agencies, and pursuant to section 4(b)(ii) of this order as necessary, provide assistance to contracting officers regarding appropriate actions to be taken in response to violations identified prior to or after contracts are awarded, and address complaints in a timely manner, by:
 
(i) providing assistance to contracting officers and other agency officials in reviewing  the information provided pursuant to
sections 2(a)(i), (ii), and (v) and 2(b)(i), (ii), and (iii) of this order, or other information indicating a violation of a labor law, so as to assess the serious, repeated, willful, or pervasive nature of any violation and evaluate steps contractors have taken to correct violations or improve compliance with relevant requirements;
 
(ii) helping agency officials determine the appropriate response to address violations of the requirements of the labor laws listed in section 2(a)(i) of this order or other information indicating such a labor violation (particularly serious, repeated, willful, or pervasive violations), including agreements requiring appropriate remedial measures, decisions not to award a contract or exercise an option on a contract, contract termination, or referral to the agency suspending and debarring official;
 
(iii) providing assistance to appropriate agency officials in receiving and responding to, or making referrals of, complaints alleging violations by agency contractors and subcontractors of the requirements of the labor laws listed in section 2(a)(i) of this order; and
 
(iv) supporting contracting officers, suspending and debarring officials, and other agency officials in the coordination of actions taken pursuant to this subsection to ensure agency-wide consistency, to the extent practicable;
 
(e) as appropriate, send information to agency suspending and debarring officials in accordance with agency procedures;
 
(f) consult with the agency's Chief Acquisition Officer and Senior Procurement Executive, and the Department of Labor as necessary, in the development of regulations, policies, and guidance addressing labor law compliance by contractors and subcontractors;
 
(g) make recommendations to the agency to strengthen agency management of contractor compliance with labor laws; 
(h) publicly report, on an annual basis, a summary of agency actions taken to promote greater labor compliance, including the agency's response pursuant to this order to serious, repeated, willful, or pervasive violations of the requirements of the labor laws listed in section 2(a)(i) of this order; and
 
(i) participate in the interagency meetings regularly convened by the Secretary of Labor pursuant to section 4(b)(iv) of this order.
 
Sec. 4.  Ensuring Government-wide Consistency.  In order to facilitate Government-wide consistency in implementing the requirements of this order: 

(a) to the extent permitted by law, the FAR Council shall, in consultation with the Department of Labor, the Office of Management and Budget, relevant enforcement agencies, and contracting agencies, propose to amend the Federal Acquisition Regulation to identify considerations for determining whether serious, repeated, willful, or pervasive violations of the labor laws listed in section 2(a)(i) of this order demonstrate a lack of integrity or business ethics.  Such considerations shall apply to the integrity and business ethics determinations made by both contracting officers and contractors pursuant to this order.  In addition, such proposed regulations shall:
 
(i) provide that, subject to the determination of the agency, in most cases a single violation of law may not necessarily give rise to a determination of lack of responsibility, depending on the nature of the violation;
 
(ii) ensure appropriate consideration is given to any remedial measures or mitigating factors, including any agreements by contractors or other corrective action taken to address violations; and
 
(iii) ensure that contracting officers and Labor Compliance Advisors send information, as appropriate, to the agency suspending and debarring official, in accordance with agency procedures.
 
(b) the Secretary of Labor shall:
 
(i) develop guidance, in consultation with the agencies responsible for enforcing the requirements of the labor laws listed in section 2(a)(i) of this order, to assist agencies in determining whether administrative merits determinations, arbitral awards or decisions, or civil judgments were issued for serious, repeated, willful, or pervasive violations of these requirements for purposes of implementation of any final rule issued by the FAR Council pursuant to this order.  Such guidance shall:
 
(A) where available, incorporate existing statutory standards for assessing whether a violation is serious, repeated, or willful; and
 
(B) where no statutory standards exist, develop standards that take into account:
 
(1) for determining whether a violation is "serious" in nature, the number of employees affected, the degree of risk posed or actual harm done by the violation to the health, safety, or well-being of a worker, the amount of damages incurred or fines or penalties assessed with regard to the violation, and other considerations as the Secretary finds appropriate;
 
(2) for determining whether a violation is "repeated" in nature, whether the entity has   had one or more additional violations of the same or a substantially similar requirement in the past 3 years;
 
(3) for determining whether a violation is "willful" in nature, whether the entity knew of, showed reckless disregard for, or acted with plain indifference to the matter of whether its conduct was prohibited by the requirements of the labor laws listed in section 2(a)(i) of this order; and
 
(4) for determining whether a violation is "pervasive" in nature, the number of violations of a requirement or the aggregate number of violations of requirements in relation to the size of the entity; 

(ii) develop processes:
 
(A) for Labor Compliance Advisors to consult
with the Department of Labor in carrying out their responsibilities under section 3(d) of this order;
 
(B) by which contracting officers and Labor Compliance Advisors may give appropriate consideration to determinations and agreements made by the Department of Labor and other agencies; and
 
(C) by which contractors may enter into agreements with the Department of Labor or other enforcement agency prior to being considered for contracts.
 
(iii) review data collection requirements and processes, and work with the Director of the Office of
Management and Budget, the Administrator for General
Services, and other agency heads to improve those processes and existing data collection systems, as necessary, to reduce the burden on contractors and increase the amount of information available to agencies; 
 
(iv) regularly convene interagency meetings of Labor
Compliance Advisors to share and promote best practices for improving labor law compliance; and
 
(v) designate an appropriate contact for agencies seeking to consult with the Department of Labor pursuant to this order;
 
(c) the Director of the Office of Management and Budget shall:
 
(i) work with the Administrator of General Services to include in the Federal Awardee Performance and Integrity Information System information provided by contractors pursuant to sections 2(a)(i) and (ii) and
2(b)(i) of this order, and data on the resolution of
 any issues related to such information; and   
(ii) designate an appropriate contact for agencies seeking to consult with the Office of Management and Budget pursuant to this order; 
 
(d) the Administrator of General Services, in consultation with other relevant agencies, shall develop a single website for Federal contractors to use for all Federal contract reporting requirements related to this order, as well as any other Federal contract reporting requirements to the extent practicable;
 
(e) in developing the guidance pursuant to subsection (b) of this section and proposing to amend the Federal Acquisition Regulation pursuant to subsection (a) of this section, the Secretary of Labor and the FAR Council, respectively, shall minimize, to the extent practicable, the burden of complying with this order for Federal contractors and subcontractors and in particular small entities, including small businesses, as defined in section 3 of the Small Business Act (15 U.S.C. 632), and small nonprofit organizations; and
 
(f) agencies shall provide the Administrator of General Services with the necessary data to develop the website described in subsection (d) of this section.
 
Sec. 5.  Paycheck Transparency.  (a)  Agencies shall ensure that, for contracts subject to section 2 of this order, provisions in solicitations and clauses in contracts shall provide that, in each pay period, contractors provide all individuals performing work under the contract for whom they are required to maintain wage records under the Fair Labor Standards
Act; 40 U.S.C. chapter 31, subchapter IV (also known as the
Davis-Bacon Act); 41 U.S.C. chapter 67 (also known as the Service Contract Act); or equivalent State laws, with a document with information concerning that individual's hours worked, overtime hours, pay, and any additions made to or deductions made from pay.  Agencies shall also require that contractors incorporate this same requirement into subcontracts covered by section 2 of this order.  The document provided to individuals exempt from the overtime compensation requirements of the Fair Labor Standards Act need not include a record of hours worked if the contractor informs the individuals of their overtime exempt status.  These requirements shall be deemed to be fulfilled if the contractor is complying with State or local requirements that the Secretary of Labor has determined are substantially similar to those required by this subsection.
 
(b)  If the contractor is treating an individual performing work under a contract or subcontract subject to subsection (a) of this section as an independent contractor, and not an employee, the contractor must provide a document informing the individual of this status.
 
Sec. 6.  Complaint and Dispute Transparency.  (a)  Agencies shall ensure that for all contracts where the estimated value of the supplies acquired and services required exceeds $1 million, provisions in solicitations and clauses in contracts shall provide that contractors agree that the decision to arbitrate claims arising under title VII of the Civil Rights Act of 1964 or any tort related to or arising out of sexual assault or harassment may only be made with the voluntary consent of employees or independent contractors after such disputes arise.  Agencies shall also require that contractors incorporate this  same requirement into subcontracts where the estimated value of the supplies acquired and services required exceeds $1 million.
 
(b) Subsection (a) of this section shall not apply to contracts or subcontracts for the acquisition of commercial items or commercially available off-the-shelf items.
 
(c) A contractor's or subcontractor's agreement under subsection (a) of this section to arbitrate certain claims only with the voluntary post-dispute consent of employees or independent contractors shall not apply with respect to:
 
(i) employees who are covered by any type of collective bargaining agreement negotiated between the contractor and a labor organization representing them; or
 
(ii) employees or independent contractors who entered into a valid contract to arbitrate prior to the contractor or subcontractor bidding on a contract covered by this order, except that a contractor's or subcontractor's agreement under subsection (a) of this section to arbitrate certain claims only with the voluntary post-dispute consent of employees or independent contractors shall apply if the contractor or subcontractor is permitted to change the terms of the contract with the employee or independent contractor, or when the contract is renegotiated or replaced.
 
 Sec. 7.  Implementing Regulations.  In addition to proposing to amend the Federal Acquisition Regulation as required by section 4(a) of this order, the FAR Council shall propose such rules and regulations and issue such orders as are deemed necessary and appropriate to carry out this order, including sections 5 and 6, and shall issue final regulations in a timely fashion after considering all public comments, as appropriate.
 
Sec. 8.  Severability.  If any provision of this order, or applying such provision to any person or circumstance, is held to be invalid, the remainder of this order and the application of the provisions of such to any person or circumstance shall not be affected thereby.
 
Sec. 9.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:
 
(i) the authority granted by law to an agency or the head thereof; or 
 
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
 
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
 
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its  departments, agencies, or entities, its officers, employees, or agents, or any other person.
 
Sec. 10.  Effective Date.  This order shall become effective immediately and shall apply to all solicitations for contracts as set forth in any final rule issued by the FAR
Council under sections 4(a) and 7 of this order.

BARACK OBAMA

FACT SHEET: Fair Pay and Safe Workplaces Executive Order

While the vast majority of federal contractors play by the rules, every year tens of thousands of American workers are denied overtime wages, not hired or paid fairly because of their gender or age, or have their health and safety put at risk by corporations contracting with the federal government that cut corners.  Taxpayer dollars should not reward corporations that break the law, so today President Obama is cracking down on federal contractors who put workers’ safety and hard-earned pay at risk. 

As part of this Year of Action, the President will sign an Executive Order that will require prospective federal contractors to disclose labor law violations and will give agencies more guidance on how to consider labor violations when awarding federal contracts.  Although many contractors already play by the rules, and federal contracting offers already must assess a contractor’s record of integrity, these officers still may not necessarily know about companies’ workplace violations. The new process is also structured to encourage companies to settle existing disputes, like paying back wages.  And finally, the Executive Order also ensures that workers are given the necessary information each pay period to verify the accuracy of their paycheck and workers who may have been sexually assaulted or had their civil rights violated get their day in court by putting an end to mandatory arbitration agreements at corporations with large federal contracts.

By cracking down on federal contractors who break the law, the President is helping ensure that all hardworking Americans get the fair pay and safe workplaces they deserve.

  Key Provisions of the Executive Order   

The Fair Pay and Safe Workplaces Executive Order will govern new federal procurement contracts valued at more than $500,000, providing information on companies’ compliance with federal labor laws for agencies.  We expect the Executive Order to be implemented on new contracts in stages, on a prioritized basis, during 2016.  The Department of Labor estimates that there are roughly 24,000 businesses with federal contracts, employing about 28 million workers. 

1. Hold Corporations Accountable: Under the terms of the Executive Order, agencies will require prospective contractors to disclose labor law violations from the past three years before they can get a contract.  The 14 covered Federal statutes and equivalent state laws include those addressing wage and hour, safety and health, collective bargaining, family and medical leave, and civil rights protections.  Agencies will also require contractors to collect similar information from many of their subcontractors.

2. Crack Down on Repeat Violators: Contracting officers will take into account only the most egregious violations, and each agency will designate a senior official as a Labor Compliance Advisor to provide consistent guidance on whether contractors’ actions rise to the level of a lack of integrity or business ethics.  This advisor will support individual contracting officers in reviewing disclosures and consult with the Department of Labor.  The Executive Order will ensure that the worst actors, who repeatedly violate the rights of their workers and put them in danger, don’t get contracts and thus can’t delay important projects and waste taxpayer money.

3. Promote Efficient Federal Contracting: Federal agencies risk poor performance by awarding contracts to companies with a history of labor law violations.  In 2010, the Government Accountability Office issued a report finding that almost two-thirds of the 50 largest wage-and-hour violations and almost 40 percent of the 50 largest workplace health-and-safety penalties issued between FY 2005 and FY 2009 were at companies that went on to receive new government contracts.  Last year, Senate Health, Education, Labor, and Pensions Committee Chairman Tom Harkin issued a report revealing that dozens of contractors with significant health, safety, and wage and hour violations were continuing to be awarded federal contacts.  Another study detailed that 28 of the companies with the top workplace violations from FY 2005 to FY 2009 subsequently received federal contracts, and a quarter of those companies eventually had significant performance problems as well—suggesting a strong relationship between contractors with a history of labor law violations and those that cannot deliver adequate performance for the taxpayer dollars they receive.  Because the companies with workplace violations are more likely to encounter performance problems, today’s action will also improve the efficiency of federal contracting and result in greater returns on federal tax dollars. 

4. Protect Responsible Contractors: The vast majority of federal contractors have clean records.  The Department of Labor estimates that the overwhelming majority of companies with federal contracts have no federal workplace violations in the past three years.  Contractors who invest in their workers’ safety and maintain a fair and equitable workplace shouldn’t have to compete with contractors who offer low-ball bids—based on savings from skirting the law—and then ultimately deliver poorer performance to taxpayers.  The Executive Order builds on the existing procurement system, so it will be familiar to contractors and will fit into established contracting practices. Responsible businesses will check a single box on a bid form indicating that they don’t have a history of labor law violations.  The Federal contracting community and other interested parties will be invited to participate in listening sessions with OMB, DOL, and senior White House officials to share views on how to ensure implementing policies and practices are both fair and effective.  DOL and other enforcement agencies along with the Federal Acquisition Regulatory Council will consider this input as they draft regulations and guidance, which will be published for public comment before being finalized.

5. Focus on Helping Companies Improve: The goal of the process created by the Executive Order is to help more contractors come into compliance with workplace protections, not to deny contracts to contractors.  Companies with labor law violations will be offered the opportunity to receive early guidance on whether those violations are potentially problematic and remedy any problems.  Contracting officers will take these steps into account before awarding a contract and ensure the contractor is living up to the terms of its agreement.

6. Give Employees a Day in Court: The Executive Order directs companies with federal contracts of $1  million or more not to require their employees to enter into predispute arbitration agreements for disputes arising out of Title VII of the Civil Rights Act or from torts related to sexual assault or harassment (except when valid contracts already exist).  This builds on a policy already passed by Congress and successfully implemented at the Department of Defense, the largest federal contracting agency, and will help improve contractors’ compliance with labor laws.

7. Give Employees Information About their Paychecks: As a normal part of doing business, most employers give their workers a pay stub with basic information about their hours and wages.  To be sure that all workers get this basic information, the Executive Order requires contractors to give their employees information concerning their hours worked, overtime hours, pay, and any additions to or deductions made from their pay, so workers can be sure they’re getting paid what they’re owed.

8. Streamline Implementation and Overall Contractor Reporting: The Executive Order directs the General Services Administration to develop a single website for contractors to meet their reporting requirements—for this order and for other contractor reporting.  Contractors will only have to provide information to one location, even if they hold multiple contracts across different agencies.  The desire to “report once in one place” is a key theme in the feedback received from current and potential contractors.  This step is one in a series of actions to make the federal marketplace more attractive to the best contractors, more accessible to small businesses and other new entrants, and more affordable to taxpayers.

Part of the basic American bargain is that if you take responsibility, work hard and play by the rules, workers can count on fair wages, freedom from discrimination on the job, and safe and equitable workplaces. Taxpayer dollars shouldn’t be used by unscrupulous employers to drive down living standards for our families, neighbors, and communities.  By creating incentives for better compliance and a process for helping contractors come into compliance with basic workplace protection laws, the Executive Order is basic good government that will increase efficiency in federal contracting and will help strengthen our workforce and our economy.