Coming out of the Honoring Investments in Recruiting and Employing American Military Veterans Act (HIRE Vets Act), signed by President Trump on May 5, the U.S Department of Labor has created the HIRE Vets Medallion Program.  The program will award employers who “recruit, retain, and employ veterans, and who offer charitable services in support of the veteran community.”

The newly sworn in Secretary of Labor, Alexander Acosta, expressed that

The Department of Labor looks forward to shining the spotlight on employers who make hiring veterans a priority and encouraging other employers to hire our nation’s heroes.

There will be two levels of awards for large, as well as small – to – mid-size employers.  The criteria for the awards include:

  • Percentage of employees who are veterans;
  • Percentage of veteran employees who are retained;
  • Establishment of veterans’ assistance and training programs;
  • Employment of dedicated human resources professionals for veterans; and
  • Income and tuition support for veterans.

The Department announced companies will be presented with awards under the program in connection with celebration of Veteran’s Day.

During a ceremony in the Rose Garden, President Trump signed a much-anticipated “Religious Liberty” executive order.   The Executive Order states it is the

policy of the executive branch to vigorously enforce Federal law’s robust protections for religious freedom.

The relatively short Executive Order also recognizes that

the United States Constitution enshrines and protects the fundamental right to religious liberty as Americans’ first freedom.

Among other items, the order calls for the Secretary of the Treasury to relax prohibitions on political activities of tax-exempt religious institutions as well as instructs the Attorney General to “as appropriate” issue guidance interpreting religious liberty protections in Federal law.

Absent from the final version of the order, however, is a provision that would have made it permissible for federal contractors to discriminate against LGBT individuals on the basis of religious beliefs.  The initial draft of the order permitted that type of action.  The removal of this provision may be a sign of the still-evolving support of the Trump administration for the LGBT community.

 

 

In a long-awaited, much anticipated, yet relatively low-key vote, the Senate has confirmed Alexander Acosta as the next U.S. Secretary of Labor.  Following a moderately contentious hearing last month before the Senate Health, Education Labor and Pensions Committee, the full Senate approved Acosta with a 60-38 vote, finally filling a key position in President Trump’s cabinet.

Acosta has a full slate of items awaiting him following his official swearing in, including selection of OFCCP Director.  It remains to be seen, however, how quickly he will fill the position in light of the other matters he has to address, notably revisions to the FLSA classifications of exempt and non-exempt employees.  We will be sure to update as soon as developments occur.

At a ceremony in Wisconsin this week, President Trump signed yet another executive order, this one entitled, “Buy American and Hire American.”

What does this mean for federal contractors?  It’s not exactly clear at this point, but as our colleagues have previously discussed, the “hire American” portion of the President’s latest Executive Order is focused on revamping the H-1B visa program.  This will impact the make-up of employers employee populations for those contractors who rely on the program to help meet their staffing needs.  As a result, the executive order could possibly necessitate a change to recruiting strategies for contractors.

To be prepared, contractors should start planning ahead and working with their recruiting teams to develop strategies for recruiting and filling open positions going forward.  This is also an opportunity to revisit and bolster your good faith outreach programs to address staffing needs.

OFCCP has released its revised VEVRAA hiring benchmark for 2017.  The agency has lowered the benchmark to 6.7 percent, down from the previous 6.9 percent mark.

As was the case last year, the agency provided guidance for contractors to implement the new benchmark stating:

Contractors who adopted the previous year’s national benchmark of 6.9 percent after March 4, 2016, but prior to this announcement, may keep their benchmark at 6.9 percent.  

This move is the third reduction of the benchmark since its inception in March 2014.

As anticipated, President Trump has put an end to Executive Order 13673 – Fair Pay & Safe Workplaces, also known as the “blacklisting” executive order.  As expected, the President signed legislation disapproving of the Executive Order pursuant to the Congressional Review Act.  He also issued an Executive Order officially revoking the initial authorizing Executive Order signed by President Obama. President Trump’s Order directs the Department of Labor and other executive agencies to “consider promptly rescinding any orders, rules, regulations, guidance, guidelines, or policies implementing or enforcing the revoked Executive Orders.”

With the underlying authorization for the regulations eliminated, this spells the end for the Executive Order as well as the DOL Guidance and the FAR provisions implementing the Blacklisting Rule.  The end result – federal contractors will not be required to report alleged labor violations to federal agencies as part of the bid process, are not required to implement procedures to comply with required paycheck transparency, and will not be prohibited from entering into mandatory arbitration agreements concerning employee Title VII claims.

 

As an update to last month’s report that OFCCP has put 800 establishments on notice of upcoming audits, we have learned that as of Friday, March 17, 2017, OFCCP has started sending out letters actually initiating audits.

Unlike the courtesy scheduling announcement letters (CSALs) which provide advance notice of an audit, the Scheduling Letters put in the mail by OFCCP of Friday initiate audits and starts the 30-day response time clock.  As a result, it is imperative that your establishments are on the look out for these letters from OFCCP and forward them to the proper people within your organization as soon as they are received.  Time is of the essence . . .

The confirmation hearing for new Secretary of Labor nominee, Alexander Acosta, has been pushed back until March 22 to allow him to travel to Nashville with the President.  Its anticipated once the hearing moves forward, the Health, Education, Labor and Pensions Committee, will vote within on Acosta’s confirmation within the following week.  Stay tuned for new developments.

The confirmation hearing for President Trump’s second Secretary of Labor nominee, Alex Acosta, has been set for March 15.

Acosta was nominated after President Trump’s initial nominee, Andrew Puzder withdrew from consideration following growing controversy.

While nothing prevents Acosta’s confirmation hearing from being postponed, as Puzder’s was several times before his eventual withdrawal, there does not seem to be a present reason for a continuation.

Confirmation of the Secretary of Labor will allow other appointments, such as the head of the OFCCP, to move forward.

By a narrow margin of 49-48, the Senate has voted to “disapprove” President Obama’s much challenged Executive Order 13673: Fair Pay and Safe Workplaces, which required the mandatory reporting of labor violations for contractors going through the contract procurement process.  Relying on the power granted it by the Congressional Review Act, Congress has all be sealed the fate of the “blacklisting” Executive Order.  The next, and final step to “undo” the Executive Order, is sign off of the disapproval resolution by President Trump.  It is anticipated he will do so without much deliberation.

As reported previously, a Texas U.S. District Court in October 2016 enjoined implementation of the “labor law violation” reporting provision of the FAR Council’s final rule implementing the order, as well as the prohibition of mandatory arbitration agreements.  Nonetheless, the “paycheck transparency” provisions of the order took effect for new contracts on January 17, 2017, leaving many contractors in compliance limbo. 

Assuming the disapproval resolution is signed by President Trump, the long saga of this order, which President Obama signed in July 2014, will come to end:  the executive order, the FAR provisions and DOL’s Guidance document will be dead; the lawsuit challenging the order will be moot; and federal contractors will be free from the burdens and obligations imposed by the order, including the paycheck transparency obligations that went into effect earlier this year.

Stay tuned for what appears will be the next, and final, chapter to this story.