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2 Ways the Blacklist Rule Formerly Affected Government Contractors

The “blacklist rule” was originally instated under the Fair Pay and Safe Workplaces rule to reinforce employee protection for all veterans, individuals with disabilities, older citizens, minorities, and LGBTQ workers. The “blacklist rule,” like a subhead to the Fair Pay and Safe Workplaces act, required contractors to share all past violations of the last 3 years before conducting construction projects with the government. It earned its name after its opponents believed that such information would be used to “blacklist” certain companies during negotiations. Our Tallahassee construction law attorneys think you should know the 2 ways that the blacklist rule formerly affected you as a government contractor.

You Had to Submit Your History of Compliance (or Non-Compliance)

The U.S. Senate recently voted against the “blacklisting rule.” The rule used to require that contractors bidding on construction projects over $500,000 submit their history of labor compliance. The Associated General Contractors of America and the Associated Builders and Contractors believed the rule violated First Amendment rights by demanding they disclose this information. This rule also added implementation costs, making it almost near impossible for smaller contractors to participate in federal projects. One of the House representatives, Jason Chaffetz estimated that “The rule itself is estimated to cost contractors and subcontractors more than $458 million in the first year and $413 million in the second year of its implementation.”

You Had to Submit Your History of Alleged Violations

Alleged violations are a lot different than confirmed allegations. As you know, a dispute can be opened from retaliation or to pass on the legal responsibility of a claim. However, under this rule, contractors had to provide all alleged allegations, defying the whole point of a contractors legal right to challenge allegations.

The repeal of the Fair Pay and Safe Workplaces Act and the blacklist rule honors the due process granted to all contractors.

To schedule a consultation with an experienced Tallahassee construction lawyer, please contact our office at 850.213.1295 or submit our contact request form to schedule a consultation.

Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.