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Feds Work to Shut Out Contractors as Punishment

, Feds Work to Shut Out Contractors as Punishment

Feds Work to Shut Out Contractors as Punishment

In July 2014, the Fair Play and Safe Workplaces executive order was enacted in an attempt to punish federal contractors who have a history of labor abuses. As Congress addresses funding for the Department of Defense, the order is causing members to take sides regarding its enforcement.

Is the “Fair Play” Order Necessary?

The order covers a wide spectrum of labor abuses, but the primary issue is wage theft, which occurs when employers don’t pay employees the full amount they are owed. In the absence of general anti-wage theft laws, the White House has used the policy to withhold federal agency contracts from offending companies.

This past May, the funding bill came before Congress, and it included a provision to make DoD contract equipment and other contracted services exempt from the President’s order. Rep. John Kline of Minnesota, author of the provision, argued that the order is redundant based on the effectiveness of current safeguards.

A House Divided

Rep. Keith Ellison, also of Minnesota, objected to the provision, citing evidence from a Senate labor report showing that $81 billion in contracts had been awarded to 49 companies with significant wage and safety violations on record. However, Ellison’s amendment to remove the provision was dismissed.

The House ultimately approved the funding bill, which is now before the Senate, but it still faces an uncertain future. The White House has suggested that President Obama will veto the entire bill unless major changes are made.

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