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Top labor and employment developments in 2017 for ADG companies

06 April 2017

ADG Insights
U.S. presidential administrations historically have sought to use the federal procurement system, and specifically the regulations that apply to contractors and subcontractors, as a means to implement policies that would require legislation to impose more broadly. The previous administration was particularly active in this way, focusing significant efforts on promulgating executive orders, regulations, and guidance intended to enhance protections of employee rights through the imposition of new compliance obligations on contractors and subcontractors. As a result of these efforts, the burdens placed on contractors and subcontractors in this area have expanded rapidly, especially during the final two years of the Obama administration. 

It is still not exactly clear how President Trump’s administration will attempt to use the federal procurement system to impose its own policy goals. It is generally expected that in the interest of reducing the regulatory burden placed on federal contractors, the recent wave of new regulations focused on employment will recede under the new administration. But that is not to suggest the Trump administration will not impose new regulations reflecting its own priorities. For instance, many expect that the administration may introduce new “buy American” regulations that would expand the scope of procurements for which contractors are required to provide products and services sourced strictly from the United States.
 
Please click here for our alert on recent developments related to the heightened Department of Labor (DOL) requirements that can apply to aerospace, defense, and government services (ADG) companies that hold U.S. government contracts and subcontracts and our projections for changes to some of these rules in 2017.

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