PSC, Coalition Oppose Flawed Labor Executive Order

Arlington, Va., November 7, 2014—The Professional Services Council yesterday joined 18 other trade and professional associations in opposing the fundamentally flawed “Fair Pay and Safe Workplaces Executive Order.” 

In a November 6 letter to Labor Secretary Thomas Perez and White House Domestic Policy Council Director Cecilia Munoz, the associations noted that the agencies already have the mechanisms in place to deal with labor law violations and that the order’s new, complicated enforcement bureaucracy was neither needed nor executable. 

“Congress has already provided strong enforcement mechanisms that both protect taxpayer dollars from egregious labor law violators while allowing for due process in applying those mechanisms to violations,” said PSC President and CEO Stan Soloway. “The order would complicate and confuse that process by imposing new data collection, reviews, inter-agency consultations and procedures on top of the balanced and battle-tested enforcement regimens already in place. Most of all, the order is so vague, sweeping and lacking in any objective criteria that it will be fundamentally unexecutable.” 

The order’s highly subjective enforcement mechanisms will increase the cost of compliance to both the government and industry by forcing industry to collect data and make reports that the government already generates on its own and which many companies could not logically be expected to compile or have access to. The ultimate result would be delayed contract awards, limited competition for work, and increased contract protests. “In the end, contrary to the administration’s claim, the unintended consequences will include a de facto blacklist,” said Soloway.

“Companies, including the kind of innovative, small, non-traditional companies the administration says it wants to attract to our marketplace, will be deterred from participating by the costly burdens imposed by this and other growing compliance requirements,” Soloway said. “This order is the antithesis to the administration’s goals of increasing competition, achieving savings, and reducing barriers to entry for innovative companies.”

The letter is available here. 

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About PSC: PSC is the voice of the government technology and professional services industry. PSC’s more than 375 member companies represent small, medium, and large businesses that provide federal agencies with services of all kinds, including information technology, engineering, logistics, facilities management, operations and maintenance, consulting, international development, scientific, social, environmental services, and more. Together, the trade association’s members employ hundreds of thousands of Americans in all 50 states. Follow PSC on Twitter @PSCSpeaks and @StanSoloway.