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Press Release

AAJ Statement on Implementation of Fair Pay and Safe Workplaces Executive Order

August 24,2016

Washington, DC — The following is a statement from American Association for Justice President Julie Braman Kane on today’s announcement of the final regulations and guidance implementing the Fair Pay and Safe Workplaces executive order, which will restore access to justice for millions of government contract employees whose rights have been eliminated by the abusive practice of forced arbitration.

“The American Association for Justice applauds this bold move to strengthen civil rights laws and ensure accountability for survivors of sexual assault and harassment. Corporations accepting taxpayer dollars will now have to play by the rules. We look forward to the full implementation of this important law.”


The Fair Pay and Safe Workplaces executive order, signed by President Barack Obama in July 2014, prohibits corporations with federal contracts of $1 million or more from subjecting their employees to forced arbitration for claims arising under Title VII of the Civil Rights Act of 1964, or civil suits related to sexual assault or harassment.

The Department of Labor estimates that there are roughly 24,000 businesses with federal contracts, employing about 28 million workers.

In addition to the ban on forced arbitration for certain disputes, the executive order will:

  • Require prospective contractors and their subcontractors to disclose labor law violations before they are awarded a federal government contract.
  • Ensure that corporations that repeatedly violate the rights of their employees and disregard workplace safety don’t receive federal government contracts.
  • Improve the efficiency of federal contracting and result in savings to American taxpayers.
Sarah Jones