Today, President Obama issued an executive order that will give businesses that play by the rules and maintain safe work environments a leg up on their competition. The order also creates a one-stop website to make it easier for businesses to meet their reporting requirements. It will protect workers and save taxpayer money.
The President’s executive order requires companies with federal contracts of more than $500,000 to disclose any labor violations in the last three during the application process. The majority of businesses, which do not have a history of labor violations, will only have to check a box.
This order is part of a broader administration effort to improve the efficiency and accountability of government contracting. A recent analysis shows that companies with labor violations are also inefficient. This new reporting requirement take will help ensure that taxpayers are not paying for poor performance.
Earlier this month, the White House also reapproved the QuickPay program, cutting in half the time it takes to pay small business contractors. The program, which began in 2012 and requires the federal government to pay contractors within 15 days, has facilitated more than $220 billion in payments to contractors.