Congress recently began the process to legislatively overturn the regulations implementing President Obama’s “Fair Pay and Safe Workplaces” Executive Order.  Under the Congressional Review Act, Congress can dismantle regulations that were finalized in the waning days of a presidential administration.  Our colleagues in the Public Policy & Government Affairs practice provide some details of the CRA here and here.  The process begins with a joint “resolution of disapproval” in Congress.  If the resolution is signed into law — a safe assumption when the presidency changes parties — the underlying regulation has no effect, and any “substantially similar” rule cannot be re-issued without specific re-authorization legislation.

On Thursday, the House passed the disapproval resolution for the Fair Pay and Safe Workplaces regulations on an almost straight party-line vote. It now goes to the Republican-controlled Senate and then to the White House, where the President’s advisors would recommend that he sign it.

Most of the Fair Pay and Safe Workplaces provisions had already been blocked since the U.S. District Court for the Eastern District of Texas issued a nation-wide injunction in October 2016, but this legislative strategy would dismantle the regulations altogether.  A portion of the regulations regarding pay transparency was allowed to take effect for new solicitations issued on or after January 1, 2017, but that portion will be overturned by this disapproval legislation.  Contractors should remember, however, that separate Labor Department regulations govern pay transparency.  Those regulations still remain in effect.

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Photo of Jeff Bozman Jeff Bozman

Jeff Bozman practices with the Public Policy & Government Affairs and Government Contracts practice groups in Washington, DC.  He focuses on the defense and aerospace industry, and on the labor and employment laws that apply to government contractors.

Photo of Jennifer Plitsch Jennifer Plitsch

Jennifer Plitsch is co-chair of the firm’s Government Contracts practice group. Her practice includes a wide range of contracting issues for large and small businesses in both defense and civilian contracting. Her practice involves advising clients on contract proposal, performance, and compliance questions…

Jennifer Plitsch is co-chair of the firm’s Government Contracts practice group. Her practice includes a wide range of contracting issues for large and small businesses in both defense and civilian contracting. Her practice involves advising clients on contract proposal, performance, and compliance questions as well as transactional and legislative issues. Her practice also includes bid protest and contract claims and appeals litigation before GAO, agency boards and the federal courts. Ms. Plitsch has particular expertise in advising clients in the pharmaceutical and biologics industry. She advises a range of pharmaceutical and biologics manufacturers on Federal Supply Schedule contracts, including the complex pricing requirements imposed on products under the Veterans Health Care Act, as well as research and development contracts and grants with various federal agencies. She also has significant experience advising on the requirements of various programs under which vaccine products and biodefense medical countermeasures are procured by the Government.