President Trump signed an Executive Order yesterday, marking another step forward in his promotion of “Buy American” and “Hire American” policies. The Executive Order focuses on two areas: cracking down abuse of the H-1B guest worker program and promoting the purchase of American products in federal procurements. We tackle in this post the “Buy American” portion of the Executive Order, which is of particular importance to federal contractors. Continue reading “How Is Your Domestic Preference Compliance? President Trump Signals More Scrutiny of “Buy American, Hire American” Practices”
On Monday, March 27, President Trump exercised his authority under the Congressional Review Act (“CRA”) to nullify the Obama-era Fair Pay and Safe Workplaces Rule, which was promulgated pursuant to President Obama’s 2014 Executive Order 13673. The rollback, which has been much anticipated by the contracting community, is part of a push by the Trump administration and the 115th Congress to scale back a number of contracting regulations that were put into effect under the Obama administration (for more on this topic, see our prior post here).
President Trump’s March 27th signing of the resolution—which effectively removes the rule from the books—follows the passage of a joint disapproval of the rule by the House and Senate. Though the rule’s reporting requirements and arbitration prohibitions had already been blocked in October 2016 by a district judge in the Eastern District of Texas, the CRA resolution, now bearing a Presidential signature, fully nullifies the entire rule and all of its requirements on federal contractors—including its paycheck transparency provisions, which were previously left intact by the court in Texas. Indeed, pursuant to the CRA, a rule that is nullified using this process “shall be treated as though such rule had never taken effect.” 5 U.S.C. § 801(f). Continue reading “President Trump Rolls Back Obama-Era Fair Pay and Safe Workplaces Rule”
It is no secret that deregulation is a top priority for the Trump Administration and the Republican-led Congress. In the early weeks of governing together, President Trump and House Speaker Paul Ryan have dusted off the Congressional Review Act (“CRA”) as the tool of choice for undoing federal rules and regulatory initiatives implemented by the Obama Administration. The little-known but important law, enacted by President Clinton in 1996, provides Congress with the ability to enact legislation overturning certain federal agency rules. In the more than two decades on the books, the CRA has only been used to overturn a federal rule on one occasion when, in 2001, President George W. Bush signed a resolution overturning an ergonomics rule issued by the preceding administration. However, despite its past obscurity, the CRA is now more important than ever. Continue reading “How a Clinton-Era Law Could Reduce Regulations on Government Contractors under President Trump”
Despite recent political shifts away from globalization, international trade remains a bedrock of the U.S. economy, and companies doing business in the United States must be cognizant of the intricate set of export control regulations promulgated by the U.S. government. In today’s rapidly changing economy, it is more important than ever for companies to thoroughly assess their connections to the international marketplace. While the Obama Administration took strides toward simplifying the export control process, U.S. export control regulations remain complex due to the multiple government stakeholders involved, resulting in varying interpretations, policies, and agendas. Export control violations can still carry serious ramifications for a company’s business practices both inside and outside the United States. Accordingly, the first of this three part series begins by identifying whether your business may be subject to the U.S. export controls regime. Our next two installments will then, respectively, address: (Part 2) practical strategies for addressing risk mitigation; and (Part 3) enforcement actions by the government. Continue reading “Managing the Export Controls Minefield (Part 1 in a Series)”
The Department of Homeland Security (“DHS”) recently issued three new proposed cybersecurity regulations for DHS contractors which warrant careful attention. Although a freeze on new regulations by the Trump administration will likely delay any final agency action, and extensive comments and meaningful changes to any final rules are expected, these new regulations could radically impact the compliance landscape for DHS contractors. As with recent cybersecurity amendments to the Federal Acquisition Regulation (“FAR”) and Defense Federal Acquisition Regulation Supplement (“DFARS”) (which we’ve covered here and here), these proposed rules seek to impose more safeguarding, handling, reporting, and training requirements on covered contractors. We continue to see cybersecurity as a major business risk in the industry today, and recommend contractors pay close attention to their operational, technology, and risk management practices relating to cybersecurity. We highlight the key elements of the proposed rules below. Continue reading “DHS Contractor? Pricey New Cybersecurity Requirements (and Hidden Risks) May Await You”
There is no question cybersecurity is a critical compliance and risk area for federal contractors. A seemingly endless stream of cyberattacks—on corporate databases, government servers, even baby monitors—shows the breadth of these problems and the need for action. Government contractors have the added challenge of specialized regulatory obligations, with compliance (or non-compliance) having a direct impact on the value of their business. Continue reading “Does Your Cybersecurity Program Satisfy Recent DFARS Amendments?”
In what may be the most significant change to contractor compliance this year, the Fair Pay and Safe Workplaces final rule takes effect on October 25, 2016. On August 25, 2016, the FAR Council and Department of Labor (“DOL”) issued the final rule and guidance implementing the Fair Pay and Safe Workplaces Executive Order, also known as “The Blacklisting Order” (originally issued on July 31, 2014). The order created new requirements for contractors, adding pre- and post-award reporting demands on covered contracts regarding contractor compliance with 14 separate labor laws. The proposed rule that was published on May 28, 2015, resulted in over 10,000 comments being submitted. The rule contains substantial new compliance obligations for contractors and drastic consequences for noncompliance. As discussed below, contractors need to take immediate steps in order to ensure readiness for these expansive new obligations. Continue reading “Fair Pay and Safe Workplaces Final Rule Takes Effect in October: Are You Ready?”