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Congress Overturns Blacklist Rule

March 14, 2017


Congress has voted to overturn an Obama administration rule requiring federal contractors to report employment law violations to agencies that award contracts. President Donald Trump is expected to sign the measure.


The rule was strongly opposed by federal contractors and they lobbied aggressively for its repeal. The blacklisting rule had been issued as part of President Obama’s Fair Pay and Safe Workplaces executive order. The regulation also required agencies to consider those reported violations when awarding contracts.


Shortly after President Trump was sworn in, the House and Senate acted to permanently reverse the regulations by using its authority under the Congressional Review Act (CRA). The CRA allows Congress to undo rules in the 60 days after they are issued.


Although rarely used, (the last time prior to this was in 2001 when Congress overturned the Clinton era Occupational Safety and Health Administration ergonomics rules), the maneuver gives a new Congress significant authority to undo acts of a prior administration that it disagrees with.


This action by Congress is a reminder to employers that compliance rules often change quickly.


If you have any questions about his or any other HR related matter, please contact the AIM HR Solutions hotline at 800-470-6277. 

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