Fix the ‘Blacklisting’ Rule

President Donald Trump has officially revoked  the so-called “Blacklisting” executive order that was signed by former President Barack H. Obama in 2014 to encourage federal contractors to obey labor laws.

That’s a shame.  It’s smart public policy to save federal tax dollars by encouraging voluntary compliance with federal law. However, in truth, Obama’s executive order was needlessly flawed and arguably unconstitutional..

As written, the blacklisting rule required contractors seeking federal contracts over $500,000 to report both alleged labor violations and adjudicated violations to federal agencies. Federal agencies could then use the information  to award future contracts, cancel existing contracts, and potentially demand remedial action to address a pattern of violations.

It should be obvious even to a high school student that the federal government can’t penalize a contractor that is merely accused of a labor law violation. What if the contractor is innocent? Contractors have a right to due process of law under the U.S. Constitution. [Read more…]