Diana Furchtgott-Roth: Obama regulatory order on federal contracts misfires


(This is an update to the original article on the Obama administration’s order.)

On Oct. 24, large companies that hold federal government contracts were saved from one of the last blasts of the Obama administration’s regulatory agenda when a Texas judge issued a preliminary injunction against the implementation of the Fair Pay and Safe Workplaces executive order. The executive order was scheduled to take effect Oct. 25.

The executive order, issued July 31, 2014, and made final with regulations announced in August, says that if a company or one of its subcontractors has allegations of violations of federal labor and employment laws, it may lose its federal contracts or the opportunity to bid on others.

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