New Executive Order Requires Federal Agencies to Ensure That Contractors Do Not Use Foreign Labor to Displace American Workers

On August 3, 2020, President Donald Trump signed an executive order and released a related fact sheet in furtherance of the White House’s continued efforts to ensure that federal agencies focus on using United States labor in their federal contracts. This new executive order, which is arguably in furtherance of the previous Buy American Hire American executive orders, requires federal agencies to review their contracts and subcontracts from fiscal years 2018 and 2019 to assess whether their contractors used temporary foreign labor to perform the contracts in the United States or performed such contracts in foreign countries when the work had previously been performed in the United States. Federal agencies are then required to determine whether these temporary foreign labor hiring practices and/or offshoring practices negatively affected opportunities for United States workers. Within the next six months, agencies are required to submit reports to the Office of Management and Budget with their findings and to recommend, if necessary, any proposed corrective actions and the timelines to implement such actions.

For the full alert, visit the Faegre Drinker website.