President Barack Obama signed three (3) Executive Orders on January 30 that will impact contracts for services with the Federal Government. Final rules and regulations defining the specific requirements of each order are now being developed. However, the Executive orders alone provide insight to the new administrations labor policies and are clear evidence that there is indeed “a new Sheriff in town”. ABC will keep members informed of further details concerning the impact of these Executive Orders as well as any further Executive Orders, which are likely to be enacted.

Generally, the three Executive Orders signed on January 30 include:

• A requirement that contractors agree to post a notice that describes the rights of employees under Federal Labor Laws. Within 120 days of the signing of the Executive Order the Secretary of Labor will initiate rulemaking to prescribe the size, form, and content of the notice to be posted.
• An order that the cost of any activities undertaken to persuade employees to exercise or to not exercise the right to organize and bargain collectively through representatives of the employees choosing, shall be considered unallowable cost for Federal disbursements and shall be excluded from any billing to any Government contract. Within 150 days of the signing of the Executive Order rules and regulations will be established to carry out this order.
• A policy that service contracts for Government contracts shall include a clause that requires the contractor, and its subcontractors, under a contract that succeeds a contract for performance of the same or similar services at the same location, to offer those employees employed under the predecessor contract a right of first refusal of employment under the contract in positions for which they are qualified. Within 180 days of the signing of the Executive Order the Secretary of Labor shall issue regulations to implement the requirements of this order.