This resolution would overturn a regulation that requires prospective federal contractors to disclose alleged and actual labor law violations, and creates labor compliance advisors to direct federal agencies about how to consider those violations when awarding contracts. The rule was created by President Obama’s Executive Order 13673 and was finalized on August 25, 2016.
The rule was aimed at promoting compliance among federal contractors with labor laws to ensure “safe, healthy, fair, and effective workplaces” because of concerns that serious, alleged labor violations weren’t being considering by the federal government’s contracting officers. It applies to all contracts over $500,000. Additionally, it imposes a requirement on contractors to maintain wage records, and requires that contracts include clauses allowing employees to voluntarily consent to going through arbitration. Federal agencies could debar contractors that have severely or repeatedly violate labor laws, meaning that they’d no longer be eligible to receive federal contracts.
Under the Congressional Review Act, Congress is able to overturn regulations finalized within the last 60 legislative days with simple majority votes on a joint resolution of disapproval in both chambers and the president’s signature. CRA resolutions also prevent the federal agency that created the regulation from issuing a similar rule without being directed to do so by Congress.