Summary

The House will use the Congressional Review Act to overturn a federal contracts blacklisting rule, which unjustly blocks many businesses accused of violating labor laws from federal contracts. This rule undermines basic due process rights by potentially blacklisting employers from federal contracts before they’ve had a chance to defend themselves in court.

Government already has the power to protect workers and prevent companies with unacceptable labor records from being awarded federal contracts. This rule will unfairly target and increase costs on businesses without improving worker protections.

The Effect

The Federal Register shows that implementation and compliance will cost companies $454.6 million in the first year alone.

Blacklist

Who it Hurts

This rule will have a chilling effect on businesses. Upon temporarily blocking the rule, U.S. District Court Judge Marcia Crone said that forcing businesses to disclose alleged violations labor violations will allow “competitors and adversaries to gain competitive advantage” and that targeted businesses “will likely suffer increased costs, loss of customers, and loss of goodwill, regardless of whether they are actually disqualified from government contracts by being labeled labor law violators.”

The rule will also reduce competition in the federal contracting process by making it harder for small businesses to compete and restricting law-abiding employers. This will increase costs for taxpayers and, even worse, delay the contracting process to supply our Armed Forces with the resources they need to keep America safe.

Why We’re Doing This

The bureaucracy is a threat to our

·    Economy

·    Constitution

·    and People

The House has already passed legislation to change the structure in Washington so the federal bureaucracy is subject to the people and so we stop getting the same bad results year after year. Now, we’re targeting specific harmful regulations and stripping them off the books.