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Trump is allowing 'blacklisted' federal contractors a second chance to work

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President Donald Trump. AP

President Trump will sign a resolution Monday afternoon undoing a key part of former President Barack Obama's labor agenda, a rule that effectively blacklisted federal contractors that were convicted of or simply charged with violating federal worker protection laws.

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The rule will be undone through the Congressional Review Act, a rarely used procedure to declare presidential actions unconstitutional.

White House spokesman Sean Spicer called the Obama administration's rule "job killing" and said that manufacturers consulted by the president had identified it as "one of the most significant threats" to expanding American businesses and hiring American workers.

"The [Obama administration] rule simply made it too easy for trial lawyers to go after American companies and American workers who contract with the American government," Spicer said.

The Obama rule was issued by the Labor Department in 2015. It required bidders on federal projects in excess of $500,000 to report any violations within the last three years of 14 federal labor and safety laws, as well as violations of any equivalent state laws. Contractors also had to report any pending complaints made against them, regardless of whether of a court had reviewed them. If the company won the contract, it had to make follow-up reports every six months until the contract was completed.

Business groups applauded the news. "The rule violated the due process rights of contractors by forcing them to report mere allegations of misconduct — which are often frivolous and filed with nefarious intentions by special interest groups — the same as fully adjudicated violations," said Ben Brubeck, vice president of regulatory, labor and state affairs for the Associated Builders and Contractors trade group.

Liberals said rolling back the rule would make it easier for bad actors to get away with breaking the law. "Congressional Republicans and President Trump have guaranteed that there will not be any system in place to ensure that taxpayer dollars support contractors with good health and safety records," said Heidi Shierholz, former chief economist at the Labor Department under Obama. Shierholz is now senior economist for the Economic Policy Institute.

A federal judge blocked the rule last year, saying the Labor Department exceeded its authority and the rule needed congressional approval.

Read the original article on Washington Examiner. Copyright 2017. Follow Washington Examiner on Twitter.
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