Is More Bureaucracy Really the Right Answer on Fair Pay and Safe Workplaces?

In July when President Obama issued the “Fair Pay and Safe Workplaces” executive order (E.O. 13673), he made it a point to note that the “vast majority” of federal contractors play by the rules and would likely not be impacted by it, and instead said he wanted to crack down on a small number of companies who do repeatedly break the law. It left many in the contracting community scratching their heads because the administration and federal agencies already have strong enforcement powers through the Federal Acquisition Regulation (FAR), over a dozen labor laws, and numerous related state laws to go after offenders that violate the law.   

Given the effectiveness of these tools, instead of adding more bureaucracy, shouldn’t the administration focus on stronger enforcement to go after a few bad actors? The IT Alliance for Public Sector (ITAPS) signed onto a letter to administration officials from multiple organizations representing a broad cross-section of the federal contractor community asking these exact questions.

Moreover, the contracting community has been trying to work with the administration on many problems that arise from the redundancy of the executive order.  The order fails to recognize how complex and challenging federal labor laws are for employers to implement correctly.  To illustrate the complexity involved it’s worth noting that even federal agencies and the Department of Labor have been found to violate these laws.  Companies could essentially be blacklisted should agency contracting officers avoid federal contractors accused of even minor violations. 

The scope of the executive order has even led to questions about whether the president is exceeding his authority by establishing degrees of violations not already included in the original statute without specific congressional action. There are also concerns about the executive order contradicting current federal law that allows employees to resolve disputes arising with employers through arbitration, rather than through the costly and lengthy court process. 

The letter also touches on the very real concerns for the contracting community about the number of executive orders being issued that make an already complex process of doing business with the federal government more complicated. This is especially true for small businesses that cannot bear the significant cost and administrative burden that will come with new requirements to contract with the federal government. 

We risk a lack of competition if fewer companies are willing or even able to compete for federal contracts. That would create widespread disruptions in government functions and significant cost increases for the taxpayer.

Adding more layers of red tape is seldom a cure and it’s becoming apparent this problematic executive order will have real world consequences for federal procurement, employers, and American workers. Given these problems the executive order should be withdrawn and the administration should instead examine how it can better use the considerable enforcement tools they already have to ensure fair pay and a safe workplace.

Public Policy Tags: Public Sector

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