As expected, President Trump has officially signed the resolution undoing the rule that the Obama administration had put in place to effectively blacklisted federal contractors that were convicted of or simply charged with violating federal worker protection laws.
The rule was 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.
A federal judge blocked the rule last year, saying the Labor Department exceeded its authority and the rule needed congressional approval.
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