President Obama signs Executive Order Supporting Worker Rights

Yesterday President Obama took an important step in supporting worker rights by signing an Executive Order requiring that companies with federal contracts in excess of $500,000 disclose any violations of labor law during the preceding three years. Agencies awarding federal contracts may consider the bidding company’s history of compliance with the law and award contracts to companies that respect their workers’ rights.

In addition, companies with federal contracts valued at over $1,000,000 will no longer be permitted to force their employees into signing mandatory arbitration agreements. Instead, these employees will be able to pursue their harassment and discrimination claims under Title VII of the Civil Rights Act in court.

Finally, the Executive Order requires contractors to provide their employees with a pay stub that clearly indicates hours worked, overtime hours worked, their pay rate and deductions and additions to pay. This basic information will allow employees to ensure that they are being paid properly.

The Executive Order will apply to approximately 24,000 companies employing about 28 million people.

Craig Henry fully supports the President’s efforts to enhance worker protections and rights through this Executive Order.