H.J.Res. 37 nullifies the rule issued by the Department of Defense (DoD), the General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA) (as members of the Federal Acquisition Regulatory Council) on August 25, 2016 implementing Executive Order 13673.
The rule imposes three obligations on federal contractors and subcontractors.
First, it requires prospective federal contractors to disclose compliance information with 14 federal labor laws and state equivalents to the government. Agency contracting officers are then required to take these disclosures into consideration when awarding contracts.
Second, the rule imposes requirements for “paycheck transparency”. Contractors required to maintain wage records under the Fair Labor Standards Act, Service Contract Act, or substantially similar state laws, must provide documentation of “hours worked, overtime hours, pay, and additions to or deductions from pay” in each pay period.
Third, the rule limits the mandatory arbitration of employee claims by requiring government contracts and subcontracts valued over $1 million to incorporate clauses stating that employees must voluntarily consent to arbitration of these claims.