WASHINGTON, D.C., Oct. 7– Associated Builders and Contractors (ABC) and its ABC
Southeast Texas Chapter announced today that they have filed a lawsuit
challenging the Fair Pay and Safe Workplaces final rule, commonly referred to
as the “blacklisting” rule, which was released Aug. 25, 2016. The legal
challenge was filed in the U.S. District Court
for the Eastern District of Texas, Beaumont Division, by the Texas office of
Littler Mendelson, P.C., ABC National’s general counsel. The firm will
represent ABC, the ABC Southeast Texas Chapter and the National Association of
Security Companies (NASCO) in the lawsuit
“The Obama Administration has exceeded its authority by forcing
government contractors and prospective government contractors to publicly
disclose mere accusations that they have violated labor and employment laws,”
said ABC Vice President of Regulatory, Labor & State Affairs Ben Brubeck.
“ABC supports policies that provide value to taxpayers by ensuring that federal
contractors compete on a level playing field, but this rule will require
contractors to report alleged violations that have not been fully adjudicated
and are being contested, which violates their first amendment and due process
rights and is likely to harm fair and open competition in the federal
“The rule creates additional costs and regulatory burdens that
will discourage qualified firms, particularly small businesses, from pursuing
federal contracts, and will drive up costs to taxpayers,” said Brubeck. “In
addition, it will cause litigation and delays that will disrupt the federal
procurement process for critical goods and services purchased by the
Nationally, ABC members performed more than 60 percent of all
federal government construction contracts exceeding $25 million from FY2009 to
The blacklisting rule is among more than a dozen
significant regulations targeting federal contractors recently issued by the
Obama administration. In addition to the final rule violating the first
amendment and due process rights of current and prospective federal
contractors, the complaint
raises a number of other critical legal issues
the courts will resolve.
survey of ABC members conducted in September
ABC has consistently
opposed the blacklisting
proposal since the White
House issued the Fair Pay and Workplaces Executive Order 13673 in July of 2014 and has:
efforts to protect contractors from the policy
Submitted comments in August
2015 urging the withdrawal of the FAR and DOL proposals along with more
than 300 member companies
Voiced concerns about the proposed rule’s violation of the first amendment rights of contractors at a June 15, 2016 meeting with the Office of Management Budget’s (OMB) Office of Information and Regulatory Affairs and in supplemental comments
For more information, visit abc.org/blacklisting.
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