Week ahead: Contractor ‘blacklist’ rule under scrutiny

by Lydia Wheeler - 09/28/15 6:00 AM ET

Two House Small Business subcommittees will hold a joint meeting to discuss a rule contractors fear could “blacklist” them from federal jobs.

The contracting subcommittee and the oversight subcommittee will examine the ramifications of the rule on small businesses that sell goods and services to the federal government when they meet for a joint hearing Tuesday.

In May, the Obama administration issued a rule and subsequent guidance that will force contractors to disclose any violations of 14 labor laws and equivalent state laws when bidding on contracts worth more than $500,000.

{mosads}The Federal Acquisition Regulatory Council rule and Labor Department guidance are directives of the Fair Pay and Safe Workplaces Executive Order President Obama signed in July 2014 as part of a larger effort to protect workers’ rights.

But industry groups say the rule will create overly burdensome reporting requirements and keep them from being able to procure future contracts.

Obama has signed 13 executive orders since 2009 specifically focused on federal contracting, and industry groups say they are being unfairly targeted.

Groups including the Professional Services Council and Associated Builders and Contractors say the president has long used federal contracting to force changes in the private sector.

Meanwhile, the Environmental Protection Agency (EPA) is gearing up to release its controversial ozone rules on Thursday. Industry groups have labeled the new standards “the most expensive regulation in history.”

The Senate Environment and Public Works Committee will hold a hearing on Tuesday looking at the economic implications of the ozone rule and other air pollution regulations. http://1.usa.gov/1FmzU2m

And later in the week, the Senate Environment and Public Works subcommittee on water will hold a hearing on the EPA’s controversial Waters of the United States regulation. http://1.usa.gov/1QDCeSY

Lawmakers will also take a look at regulation of the “sharing economy” at a House Energy and Commerce subcommittee hearing on Tuesday.

Republicans are wary of regulation they say could hamper companies such as Uber.