President Signs Executive Order Promoting Labor Standards in Federal Contracting

On September 6, 2024, President Biden signed an Executive Order on Investing in America and Investing in Americans ("Good Jobs" EO) directing federal agencies to prioritize and incentivize companies that adhere to a list of labor standards when awarding federal funds. The order goes beyond already existing minimum wage, PLA and paid sick leave requirements, as agencies will now be tasked with considering companies that promote union organizing, offer child and dependent care, provide health insurance, paid leave and retirement benefits, participate in registered apprenticeships and prioritize safety practices.

Specifically, the EO calls on agencies to adopt the following labor standards:

• Promoting worker voice, through Project Labor Agreements (PLAs), Community Benefits Agreements, voluntary union recognition, and neutrality with respect to union organizing.
• Providing tools to promote high-wage jobs, through prevailing wage standards and other equitable compensation practices, such as prioritizing equal pay and pay transparency.
• Promoting worker economic security, by directing agencies to consider prioritizing projects that supply the benefits that workers need-including child and dependent care to health insurance, paid leave, and retirement benefits.
• Supporting workforce development through registered apprenticeships, pre-apprenticeships, labor-management partnerships, and partnerships with training organizations including community colleges, public workforce boards, and the American Climate Corps.
• Leveling the playing field, by encouraging grantees to develop equitable workforce plans and offering project supports that promote fair hiring and management practices as the projects develop.
• Supporting workplace safety by encouraging agencies to prioritize reporting structures that help ensure compliance with all workplace health and safety laws.

Several of the polices were already contained and used as discretionary awarding criteria within existing programs under the American Rescue Plan, Infrastructure Investment and Jobs Act, CHIPS and Science Act, and Inflation Reduction Act. The new EO would now attempt to formally standardize these requirements across all federal agencies and all federal programs.

For more information, contact Jim Young at [email protected] or 202-547-0133 or Claiborne Guy at [email protected] or 703-837-5382.